Crude oil import operations continue as scheduled to support production at the Dung Quat Oil Refinery in Quang Ngai Province, central Vietnam. Photo: Duc Chinh
Binh Son Refining and Petrochemical Joint Stock Company (BSR), which operates the Dung Quat Oil Refinery, said on Sunday it was implementing measures to maintain production and ensure sufficient fuel supply for the domestic market.
The move comes as tensions in the Middle East persist, increasing the risk of fluctuations in oil prices, transportation costs, and marine insurance premiums.
The latest tensions stem from a widening confrontation involving Israel, Iran, and the United States, raising fears of a broader regional conflict.
The situation has drawn particular attention to the Strait of Hormuz, one of the world’s most critical oil chokepoints, through which roughly a fifth of global petroleum supplies pass.
Iran has said it would sink any oil tanker attempting to cross this strait.
BSR signs crude supply contracts with ExxonMobil and Chevron
BSR general director Nguyen Viet Thang said refinery units had been instructed to maintain stable operations and run at planned maximum capacity.
About 30-35 percent of the refinery’s crude feedstock is imported, mainly from West Africa, the Mediterranean region, the United States, and the Middle East.
BSR said it has increased inventories and diversified supply sources to reduce reliance on any single region.
The company has signed crude oil supply agreements with U.S. energy companies ExxonMobil and Chevron.
It expects to import about three million barrels of crude oil from the suppliers between March and May 2026.
BSR said it is working with the PetroVietnam Central Biofuels Plant to secure ethanol supplies for blending E5 and E10 biofuel gasoline.
Representatives of PetroVietnam Central Biofuels Joint Stock Company said the plant began test operations on January 20 and produced its first batch of fuel ethanol on February 6.
The company has delivered its first shipment to BSR for blending into E10 RON95 gasoline.
The plant is expected to operate at full capacity from March 20, producing about 60,000 tonnes of ethanol per year, or more than 5,000 tonnes per month.
The Dung Quat Oil Refinery is working to diversify feedstock sources to ensure fuel supply for the domestic market. Photo: Tran Mai / Tuoi Tre
BSR prepares contingency plans
BSR said it is monitoring domestic and international markets and preparing import plans to maintain refinery operations if supply chains are disrupted.
The firm has also proactively developed flexible crude oil import plans to ensure the refinery can continue operating under various scenarios, including situations where a prolonged crisis significantly disrupts the global supply chain.
The company said it is adjusting production and trading volumes to meet demand from fuel distributors and maintain supply in the domestic market.
BSR added it has prepared financial plans for different market scenarios, including prolonged geopolitical tensions that could affect supply contracts.
This proactive preparation helps ensure the company will not be caught off guard should some partners invoke the 'force majeure' clause in existing supply contracts.
Dung Quat Oil Refinery
The Dung Quat refinery began commercial operations in 2009 with a designed processing capacity of 6.5 million tonnes of crude oil per year.
The facility currently supplies about 30-35 percent of Vietnam’s fuel demand.
BSR is implementing a phase 2 expansion project to increase processing capacity to 171,000 barrels from 148,000 of crude oil per day and expand the range of crude grades the refinery can process.
This expansion will create a stronger foundation for responding to unpredictable volatility in the global energy market in the future.
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