PV Oil to Import Crude Oil from BP, Shell for Dung Quat Oil Plant

PetroVietnam Oil Corp. (PV Oil), an affiliate of the state-owned Vietnam Oil and Gas Group, is speeding up negotiations to import crude oil from BP and Shell to serve the national first oil refinery Dung Quat.

PV Oil expects crude oil imports will meet between 30% and 50% of the plant’s demand in the next years.

Last February, PetroVietnam-owned Binh Son Refining and Petrochemical Company (BSR) and PV Oil signed an agreement with BP on crude oil supply for the refinery.

Currently, the plant, located in the central province of Quang Ngai, is using crude oil sourced from Vietnam’s biggest oilfield Bach Ho and Nam Rong-Doi Moi oilfield.

The US$3.054-billion plant had produced 3.3 million tons of petroleum products since its first operation on February 22, 2009 through end-April of this year.

PetroVietnam is seeking partners to raise capacity of the plant to 8.5 million per year from the current designed 6.5 million.

Tags: BP, Dung Quat Oil Plant, PV Oil, Shell, Vietnam crude oil import, Vietnam oil and gas