BSR signs crude oil purchase framework agreement with ExxonMobil Asia Pacific

BSR signs crude oil purchase framework agreement with ExxonMobil Asia Pacific

On September 23, Petrovietnam Refining and Petrochemical Corporation exchanged a Framework Agreement for crude oil purchases with ExxonMobil Asia Pacific, opening a new avenue of cooperation in feedstock supply for Dung Quat Refinery.

BSR president & CEO Nguyen Viet Thang (sixth from the left, front row) presents the Framework Agreement to representatives of ExxonMobil Asia Pacific. Photo courtesy of BSR

On September 23, Petrovietnam Refining and Petrochemical Corporation exchanged a Framework Agreement for crude oil purchases with ExxonMobil Asia Pacific, opening a new avenue of cooperation in feedstock supply for Dung Quat Refinery.

The signing was witnessed by Party General Secretary and State President To Lam, together with senior leaders of the Party, the state, and the government of Vietnam. It was part of a roundtable with executives from leading US corporations.

The agreement with ExxonMobil Asia Pacific comes as Petrovietnam Refining and Petrochemical Corporation (BSR) accelerates its strategy to diversify crude oil sources, enhance operational flexibility, and strengthen resilience against increasingly unpredictable developments in the global energy market.

Since the beginning of 2026, the corporation has identified, evaluated, and expanded crude oil supply sources from multiple regions worldwide, including the US. BSR has also signed crude oil supply agreements with Chevron to help ensure a stable feedstock supply for the refinery.

A key competitive advantage of Dung Quat Refinery lies in its growing capability to receive and process a wide range of crude oil grades. Since the beginning of 2026, BSR has successfully tested three additional crude oil grades, bringing the total number of crude types that can be processed at the refinery to 40, including 12 domestic grades, and 28 imported grades.

In 2026 alone, BSR mastered the processing technology for Nigeria's Erha crude at a maximum blending ratio of approximately 45 per cent by volume, and Sao Vang – Dai Nguyet condensate at up to around 12 per cent by volume.

Expanding its crude oil basket gives BSR greater flexibility to select the most suitable feedstock in response to market conditions, while reducing reliance on traditional supply sources. In 2025, Dung Quat Refinery imported approximately 8.28 million tonnes of crude oil, with imported crude accounting for around 31 per cent of total feedstock.

In 2026, to safeguard supply security and respond to geopolitical uncertainties, BSR has prioritised balancing domestic crude oil sources, while maintaining imported crude at approximately 15 per cent, sourced from regions including West Africa, the Mediterranean, and Southeast Asia.

Through the Framework Agreement, BSR continues to expand its network of international crude oil suppliers, creating additional feedstock options for Dung Quat Refinery. The agreement also aligns with the corporation's strategy to strengthen feedstock security, enhance its ability to respond to oil market volatility, and reinforce the refinery's operational resilience.

VIR