The working delegation of the State Capital Management Committee at Enterprises was chaired by Mr. Ho Sy Hung - Vice Chairman of the Committee. Attending the meeting were Mr. Bui Minh Tien - Member of the Board of Directors of the Vietnam Oil and Gas Group; and representatives of heads/deputy heads of the Group's professional departments.
On the side of BSR, there were comrade Nguyen Van Hoi - Party Committee Secretary/Chairman of the Board of Directors; comrade Bui Ngoc Duong - Deputy Party Committee Secretary/General Director and members of the Board of Directors, Board of Directors; Project Management Board (PMU) for Upgrading and Expansion (NCMR) of Dung Quat Oil Refinery (NMLD) and heads of BSR's professional departments.
At the meeting, BSR General Director Bui Ngoc Duong reported to the delegation: "By the end of 2024, BSR's production output is estimated to reach 6.6 million tons, revenue of over 120 trillion VND and payment to the State budget of over 13 trillion VND. BSR's revenue and payment to the State budget in 2024 both exceeded and far exceeded the plan" - BSR General Director Bui Ngoc Duong said.
Mr. Bui Ngoc Duong also analyzed the operating context of oil refineries around the world. Many refineries have been forced to close down due to the increasing losses caused by the decline in crude oil prices. The sharp drop in oil prices has reduced profit margins, creating general difficulties for the global petrochemical industry. BSR is not immune to this trend. However, the company has applied many solutions to minimize this impact.
In addition, the BSR General Director was pleased to announce that in the last days of 2024, the Ho Chi Minh City Stock Exchange approved the listing of BSR shares on the HOSE. This not only enhances transparency but also attracts more investors.
BSR Deputy General Director and Head of Dung Quat Refinery and Petroleum Refinery Project Management Board Nghiem Duc Duong reported: In May 2023, the Government signed Decision No. 482/QD-TTg approving the adjustment of the investment policy of Dung Quat Refinery and Petroleum Refinery Project. Accordingly, the plant will increase its processing capacity from 148,000 barrels/day to 171,000 barrels/day, products will meet EURO V standards and meet environmental requirements according to the Government's roadmap. The plant will also increase flexibility in selecting crude oil, ensuring long-term and effective supply, while promoting socio-economic development, especially in the Central region.
In March 2024, the Ministry of Industry and Trade announced the results of the appraisal of the Feasibility Study Report (FS) of the NCMR project. Immediately afterwards, the BSR Board of Directors approved the adjustment of the NCMR Project of Dung Quat NMLD.
In 2024, the Dung Quat Refinery Refinery NCMR Project Management Board achieved the following results: Signing the FEED Consulting Contract; the overall progress of FEED design reached 27% of the volume. The Project Management Board also completed the selection of contractors and signed contracts to provide technology copyright with copyright holders from France, the US, Italy, and the Netherlands. Currently, copyright holders are implementing technology design in sync with FEED.
Regarding capital arrangement, the PMU has selected HSBC as the bank coordinating export credit loans (ECA). On November 25, 2024, BSR and PVcomBank signed the "Consulting Contract for Capital Arrangement for Dung Quat Refinery and Petrochemical Project". PVcomBank will support BSR in arranging loans accounting for 40% of the total project investment, equivalent to about 526 million USD.
In 2025, the Project Management Board will focus on milestones such as: Appraisal and approval of FEED design; approval of EPC bidding documents; selection of EPC contractor and site clearance.
BSR Chairman Nguyen Van Hoi and Group Member Bui Minh Tien also spoke, analyzing BSR's production and business situation last year and upcoming challenges. Company and Group leaders also gave opinions to speed up the project's progress.
In his concluding remarks, Mr. Ho Sy Hung - Vice Chairman of the Vietnam Oil and Gas Group, acknowledged BSR's efforts in 2024. Despite the fluctuations in the global oil and gas refining market, BSR still achieved many important targets, especially in the overall maintenance of the plant.
Mr. Ho Sy Hung emphasized: “Entering the new year, the market will still face many challenges. BSR needs to focus on researching and implementing solutions, while receiving support from the Vietnam Oil and Gas Group. For the Dung Quat NMLD NCMR project, it is necessary to speed up the progress and choose a quality EPC contractor to optimize costs and implementation time. BSR's recommendations are reasonable and will be reported to the competent authority for timely handling.”
