BP, PetroVietnam Units Ink Crude Oil Supply Deal for Dung Quat Refinery
The British Petroleum (BP) will supply crude oil for Vietnam’s first oil refinery of Dung Quat, according to an agreement jointly inked by BP, PetroVietnam-owned Binh Son Refining and Petrochemical Company (BSR) and PetroVietnam Oil Corporation (PV Oil) Jan. 12.
Under the deal, BSR will assign PV Oil to negotiate with BP over the purchase of crude oil, which will gradually replace the supply of crude from Vietnam’s Bach Ho (White Tiger) oil field, whose output is forecast to fall in the future.
Dung Quat refinery is designed to refine 6.5 million tons of crude oil into liquefied petroleum gas (LPG), propylene, 90RON and 92RON gasoline, kerosene, Jet A1, diesel oil (DO), and fuel oil (FO) which are expected to meet 30 per cent of local demands.
So far, the underway US$2.5 billion oil refinery has almost 98 per cent of its construction workload completed with an expected for trial run in February 2009.
In 2009, the refinery is expected to consume 3.5 million tons of crude oil or 70,000-75,000 barrels per day.
Currently, Vietnam has to import almost all petroleum products to meet local demand due to no refineries.
Last year, the country spent US$10.81 billion on importing 12.65 million metric tons of petroleum products, up 40.2 per cent on year in value and 1.5 per cent in volume. (Labor, The People)
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