Dung Quat Refinery is using about 30-35% of imported crude oil, mainly from West Africa, the Mediterranean region, the US and partly from the Middle East. If the conflict in the Middle East lasts, oil prices, surcharges, freight rates and insurance premiums may continue to increase sharply, significantly increasing input costs and financial risks.
Right from the beginning of 2026, in order to prepare for the goal of double-digit growth and proactively respond to unusual situations in the world as well as the impact of climate change, BSR has proactively increased inventory levels, managed production flexibly according to market demand and diversified raw material sources.
Talking to Lao Dong Newspaper, Mr. Nguyen Viet Thang - General Director of Binh Son Refining and Petrochemical Joint Stock Company (BSR) - a member unit of Vietnam National Group of Industry and Energy (Petrovietnam) said that, implementing the direction of the Ministry of Industry and Trade and Petrovietnam, BSR has signed a crude oil supply agreement with two large US energy corporations, ExxonMobil and Chevron, to ensure stable supply and contribute to reducing the trade balance between Vietnam and the US.
In the period from May to May 2026, BSR signed contracts to purchase about 3 million barrels of imported crude oil (Through Iboe, Bu Attifel, Medanito and Palanca Blend). Although these sources are not in direct conflict zones, geopolitical tensions in the Middle East can still indirectly affect delivery progress, transportation costs, insurance and maritime safety.
Notably, with the demand for additional purchases under shipment contracts in May 2026 estimated at about 900 thousand to 1 million barrels and June 2026 at about 1-1.3 million barrels, the operation of the plant at 118-120% capacity will be under great pressure on prices and access to goods sources.
In February, BSR deployed the purchase of high octane fuel components for blending. However, due to scarce supply and strong market fluctuations, BSR has not been able to purchase enough volume as planned, affecting the plan to increase processing in March 2026. To achieve a minimum conversion capacity of 120% (including crude oil and intermediate materials), BSR is making efforts to find and purchase additional raw materials in March-April 2026, increasing purchasing pressure in the context of unfavorable market conditions.
Besides the price factor, another risk is the possibility of supply chain disruption that may directly affect the plant's operating plan, especially in the late second quarter and early third quarter of 2026.
To minimize the risk of crude oil shortage causing Dung Quat Oil Refinery to adjust down capacity or not complete the assigned plan, BSR has proposed to competent authorities and Petrovietnam to consider a preferential mechanism for BSR to buy maximum crude oil and condensate exploited domestically.
At the same time, BSR proposed that management agencies apply a temporary mechanism to prioritize domestic crude oil for Dung Quat Refinery to process finished petroleum products, as well as limit domestic crude oil exports during the peak risk period (until the end of the third quarter of 2026 or until the international market stabilizes), in order to ensure national energy security.
To ensure sufficient oil for operation in May-June 2026, BSR proposes to be allowed to directly purchase crude oil from the Ruby, Bunga Orkid (BO) and Chim Sao blocks delivered during this period at the highest bidding price of the most recent period, as a temporary solution to ensure timely supply in the context of strong market fluctuations.
