On July 9 in Hanoi, Petrovietnam Refining and Petrochemical Corporation (BSR), a member of Vietnam National Industry - Energy Group (Petrovietnam), held the signing ceremony for the EPC and PMC contracts of the Dung Quat Refinery Upgrade and Expansion Project.

Attending and witnessing the ceremony were Mr. Nguyen Ngoc Sam, Vice Chairman of the Quang Ngai Provincial People's Committee, along with representatives of central ministries, government agencies and local authorities.

Representing Petrovietnam were Mr. Le Ngoc Son, Chairman of the Members' Council; Mr. Tran Quang Dung, members of the Members' Council, the Board of Management, and leaders of the Group's functional divisions. Representing BSR were Mr. Bui Ngoc Duong, Chairman of the Board of Directors; Mr. Nguyen Viet Thang, President and CEO; members of the Board of Directors, the Executive Management Board, and representatives of the Dung Quat Refinery Upgrade and Expansion Project Management Unit.

The Dung Quat Refinery Upgrade and Expansion Project is a nationally significant project and one of the key projects of Vietnam's energy sector. It has received approval from the Prime Minister for the adjustment of its investment policy and subsequent investment approval in accordance with applicable regulations.

With a total investment of approximately VND 36.397 trillion (equivalent to USD 1.489 billion), the project will increase the refinery's processing capacity from 148,000 barrels of crude oil per day to 171,000 barrels per day, enhance its capability to process a wider range of crude oil grades, produce fuels meeting Euro V standards, improve operational efficiency, and strengthen BSR's competitiveness amid the global energy transition and deeper international integration.

According to the implementation schedule, the project will be executed over 37 months from the effective date of the EPC contract and is expected to commence commercial operation in 2028.

Speaking on behalf of the project owner, BSR President and CEO Nguyen Viet Thang emphasized that 2026 represents a particularly important milestone as Vietnam strives to successfully implement its socio-economic development plan while marking the first year of implementing the Resolution of the 14th National Party Congress, opening a new phase of national development. Against the backdrop of accelerating global energy transition, increasingly stringent environmental standards, and intensifying market competition, the Dung Quat Refinery Upgrade and Expansion Project is not only designed to meet immediate development needs but also constitutes a strategic investment to enhance BSR's competitiveness for decades to come.

According to Mr. Nguyen Viet Thang, the project aims not only to increase production capacity and operational efficiency but also to establish a foundation for gradually transforming the refinery into a greener, more modern and sustainable facility. The application of advanced, high-efficiency and environmentally friendly technologies will help reduce emissions, improve resource efficiency, and accelerate the green transformation of Vietnam's refining and petrochemical industry, in line with the country's national energy development strategy, green growth objectives under Politburo Resolution No. 70-NQ/TW, and Vietnam's energy development strategies through 2030 with a vision toward 2045.

To achieve these objectives, BSR has engaged leading international consulting firms and technology licensors. The Front-End Engineering Design (FEED) was carried out by Foster Wheeler (part of the WOOD Group, United Kingdom), which participated in the original design of Dung Quat Refinery and possesses extensive experience in major refinery projects across the region. Proprietary technologies have been selected from world-leading licensors, including Axens (France), UOP (United States), Merichem (United States), KT – Kinetics Technology (Italy), and Worley (Netherlands).

BSR has also established four guiding principles throughout project execution: Safety is our highest priority and core value. Quality is a matter of honor and reputation for every participating party. Schedule is our commitment to the Government, Petrovietnam, and our partners. Efficiency is the ultimate measure of success. President and CEO Nguyen Viet Thang expressed confidence that the project would become a landmark engineering achievement celebrating new milestones in the development of Petrovietnam and Vietnam as the nation advances into a new era of growth.

Under the contract, the Chengda – BPE EPC Consortium will undertake detailed engineering, procurement, construction, installation and commissioning based on the advanced technologies established during the FEED phase. Earlier on the same day, BSR also signed the Project Management Consultancy (PMC) Contract with Foster Wheeler.

The signing ceremony also reaffirmed the strong commitment and close cooperation among government authorities, the Quang Ngai provincial government, Petrovietnam, BSR, and both domestic and international partners in delivering one of Vietnam's largest industrial projects currently under development.

Upon completion, the project will significantly enhance Vietnam's domestic crude oil processing capacity, ensure a stable supply of high-quality fuels for the national economy, improve resilience against fluctuations in the global energy market, and create new momentum for the development of the Dung Quat Economic Zone and the Central Region. It will further reinforce the role of Petrovietnam and BSR in ensuring national energy security, promoting industrial development, and supporting the country's sustainable economic growth. Moreover, the refinery upgrade and expansion will contribute to realizing the vision of developing Dung Quat into Vietnam's national refining, petrochemical and energy hub.

BSR