Vietnam refineries strengthen ties for sustainable development
Photo courtesy of Nghi Son Refinery and Petrochemical

Vietnam refineries strengthen ties for sustainable development

On August 15, 2023, in Hanoi, Vietnam, a significant collaboration was solidified between two major players in the Vietnamese petroleum sector. The Nghi Son Refinery and Petrochemical Limited Liability Company (NSRP) and the Binh Son Refining and Petrochemical Joint Stock Company (BSR) signed a memorandum of understanding (MoU). This partnership aims to enhance the efficiency of operations and maintenance of Vietnam’s two largest integrated refineries and petrochemical complexes.

The MoU outlines several potential areas of cooperation, including resource sharing, expertise exchange, technical and maintenance services, and joint ventures in raw material and oil product trading. This collaboration isn’t new; since 2013, NSRP and BSR have fostered a multifaceted relationship. Their combined efforts during the construction and operational phases of the NSRP refinery have yielded positive results, such as specialised training for new employees and resource sharing.

The signing ceremony symbolises the continuation of a tradition of mutual cooperation that has spanned many years. It aims to further strengthen the collaboration in refinery management and operations between the two entities. NSRP General Director So Hasegawa, expressed his appreciation for BSR’s continuous support over the years. He emphasised the importance of this partnership, especially in the current unpredictable global petroleum market.

BSR, primarily owned by the state-owned Vietnam Oil and Gas Group (Petrovietnam), manages the Dung Quat Refinery in Quang Ngai province. Together with NSRP, these refineries supply approximately 70% to 75% of Vietnam’s domestic demand for petroleum products.

NSRP is a joint venture comprising the Vietnam Oil and Gas Group (PetroVietnam), Kuwait Petroleum Europe (KPE), Idemitsu Kosan (IKC), and Mitsui Chemicals (MCI). Located in the Nghi Son Economic Zone in Thanh Hoa Province, the refinery processes 200,000 barrels of crude oil daily. NSRP not only supplies refined products to the Vietnamese market but also exports select petrochemical products to other countries.