The Dung Quất oil refinery in Quảng Ngãi Province. — VNA/VNS Photo

The Petrovietnam Exploration Production Corporation (PVEP), the Petrovietnam Oil Corporation (PVOIL), and the Bình Sơn Refining and Petrochemical JSC (BSR) have signed a contract to supply crude oil from the Đại Hùng field to the Dung Quất refinery.

In particular, the three reached consensus on the principle contract for the long-term supply of crude oil from Đại Hùng to the Dung Quất refinery, based in the central province of Quảng Ngãi, in the 2024-27 period.

The latest move is also a condition for expanding cooperation among the parties and enhancing the efficiency of the value chain in the Việt Nam Oil and Gas Group (Petrovietnam).

During 2021-24, the three have carried out a similar contract for the long-term supply of Đại Hùng crude oil for the plant.

The work accords with the Government and Petrovietnam’s direction on maximising domestic crude oil supply for Vietnamese refineries to help ensure energy security and respond to adverse changes in the global crude oil market in a timely manner, according to PVEP.

The sides have successfully handed over and received about 6.44 million oil barrels, and recorded some US$614.4 million in revenue.

At the signing ceremony in Hà Nội on July 14, PVEP and the Petrovietnam Gas Corporation (PVGAS) also inked a memorandum of understanding on the supply and consumption of gas from the Kỳ Lân field.

The MoU is expected to create an important prerequisite for the development of oil and gas activities in the Red River basin in the Gulf of Tonkin. — VNS