BP to supply crude oil for Dung Quat refinery

The oil giant, British Petroleum, is to supply crude oil to Dung Quat, Vietnam ’s first oil refinery, in accordance with a contract signed in Hanoi on Jan 12 by the British company and Vietnam ’s PV Oil and BSR firms.

PV Oil is responsible for negotiating with BP over the purchase of crude oil, which will gradually replace the supply of crude from Vietnam ’s Bach Ho (White Tiger) oil field, whose output is expected to decrease in the future.

Dung Quat refinery, which is to commence operations on Feb 25, is designed to process 3.5 million tonnes of oil during 2009, or 70-75 barrels per day. Its annual capacity is set to increase to 6.5 million tonnes, equivalent to 100-145 barrels per day in subsequent years.

Once fully operational, the refinery will meet 30 percent of domestic demand. Vietnam currently imports 13 million tonnes of petro and oil per year.

Source: VNA