​Safe operation, optimal capacity

If we take the capacity of the CDU workshop (which supplies atmospheric distillation residue as raw material for the RFCC workshop - the heart of the refinery - to produce various petroleum products) as the basis for the entire plant's capacity, it can be seen that Dung Quat Oil Refinery always operates at 100% capacity or more. In 2021, the average capacity of the CDU workshop was 100%; in 2022 it was 108% and in the first half of 2023 it reached 110%.

With the above capacity, in the first 6 months of 2023, Dung Quat Oil Refinery produced over 3.56 million tons of products, equivalent to 113% of the plan for the period.

Other workshops of the Factory have also been upgraded to quite high capacity, such as KTU up to 130% compared to the design, helping the Factory produce about 1 million more barrels of Jet A fuel per year. In June 2023, BSR has just successfully completed a test to increase the capacity of the KTU workshop to 135%.

The NHT gasoline workshop cluster has also been upgraded to 135% capacity; the CCR workshop operates at 110% capacity; the ISOM workshop operates at 150% capacity compared to the design, helping to increase the output of Mogas 92 and 95 gasoline of the Factory.

Testing the operation of the RFCC workshop at high (105%) and low (70%) capacity levels helps the Factory maintain continuous and flexible operations for a long time when the market is seriously affected by the Covid-19 pandemic.

Along with ensuring safe operation of the Factory, the improvement of management and risk control work is also continuously implemented by the Production Block. The emulation movement "Ensuring safe, stable and efficient operation" has always been widely promoted throughout the entire Production Block and has brought about very encouraging results.

Mr. Cao Tuan Si, Deputy Director of the Factory and Head of BSR Production Operations Department, said: "Each individual in the Production Block always clearly identifies their role and responsibility in mastering production technology, cultivating operational skills, troubleshooting, as well as management skills and labor discipline in complying with operating procedures".

Regular equipment inspection and maintenance and repair work is the "shield" to protect the safe operation of equipment, helping the entire Factory to always be in the most ready state. Over the past 3 years, comprehensive equipment inspections have been carried out extensively with 6,896 equipment and pipelines out of a total of 7,030 points and equipment that need to be inspected, thereby detecting and repairing many heavily corroded equipment locations to ensure mechanical integrity.

Special attention has also been paid to the assessment of reliability enhancement, ensuring that the operational readiness of equipment in the factory reaches 95.6%. This is a rate comparable to advanced factories in the world. In particular, BSR has applied 100 solutions to improve and enhance equipment reliability in the factory.

Diversifying raw materials and output products

BSR has made a special mark in optimizing technology, saving energy, diversifying processed crude oil sources as well as developing new products.

Since 2020, the Company has evaluated and added 19 new crude oils to the Refinery's oil basket, bringing the total number of crude oils that can be processed to 83.

The Company has also successfully tested processing 10 new crude oils, including 8 foreign crude oils and 2 domestic crude oils; at the same time, imported 2 new raw materials Residue, VGO through Jetty and SPM for successful processing at the RFCC workshop.

Diversifying raw material sources has helped the Company access alternative raw materials, blending with Bach Ho crude oil and equivalent oils, while opening up many opportunities to buy oils that are cheaper than domestic crude oil.

In addition to diversifying input materials, BSR focuses on diversifying products, especially products that are in demand in the market and have high prices.

The Company has developed 6 more fuel products and 5 petrochemical products, including: 3 types of special fuel for national defense (Jet A-1K, DO L-62 oil, RON 83 gasoline); 1 type of T-LCO oil used as petrochemical raw material; 1 type of Mixed C4 used as petrochemical raw material/production of Alkylate gasoline; 5 types of petrochemicals, which are new PP resins: T3045, T3050, I3085, I3150, BOPP F3030.

According to the original design of Dung Quat Oil Refinery, the Mixed C4 component is used to blend gasoline and LPG products. Recognizing the opportunity to increase value and diversify products for the Company, since 2019, BSR has conducted research, evaluation and successfully tested the production of Mixed C4 products. To date, the Company has sold the first batch of 2,000 tons of Mixed C4 to Marubeni Company.

BSR's success in developing a new product Mix C4 with high economic value and efficiency, good quality, and access to niche markets will help the Company increase profits. This is also an important milestone contributing to BSR's product diversification strategy, affirming the maturity of BSR's management staff, experts, and engineers in the process of mastering technology and developing new products at Dung Quat Oil Refinery.

Mr. Le Hai Tuan, Head of BSR Research and Development Department, said,

In recent years, especially in the period of 2021-2022, the Company has actively worked with technology copyright suppliers and consulting units to research, optimize technology, upgrade quality, diversify raw materials, and develop new products to improve the efficiency of production and business activities.

BSR also promotes energy saving with many technical solutions to significantly improve energy efficiency throughout the Factory. Specifically, the Energy Intensive Index (EII), which characterizes the energy efficiency of the Factory, has decreased significantly from 111% in 2016 to 104 - 106% in 2020 - 2023. According to the Solomon Organization's assessment report in 2018, reducing the EII index by 1% is equivalent to saving about 2.6 million USD/year.

BSR has been approved by the Deputy Prime Minister to adjust the investment policy for the Dung Quat Oil Refinery Expansion Project. According to the plan, the project will be put into operation from 2028, increasing the design capacity of Dung Quat Refinery from 148,000 barrels/day to 171,000 barrels/day, equivalent to 7.6 million tons/year.

The output, financial and investment targets in the 5-year plan (2021-2025) are set by BSR with many targets of slight growth compared to previous years. Accordingly, the production/consumption output is from 32,194,600 - 33,804,200 tons.

Regarding BSR's consolidated financial targets, revenue in 5 years will reach from 557,000 - 585,000 billion VND; profit after tax of 23,100 - 24,300 billion VND and payment to the State budget of 63,400 - 66,600 billion VND.

According to stock market news