BSR focuses resources on upgrading and expanding Dung Quất Refinery
On January 7, BSR signed a contract with Germany’s Fichtner GmbH & Co. KG and Việt Nam’s Institute of Tropical Biology (ITB) for environmental and social impact assessment (ESIA) consulting in line with international standards, a requirement for project financing.
HÀ NỘI — Bình Sơn Refining and Petrochemical Joint Stock Company (BSR) is accelerating the implementation of its Dung Quất Refinery upgrade and expansion project, with a total investment of US$1.49 billion.
The project aims to increase the refinery's capacity from 148,000 barrels per day to 171,000 barrels per day, meet Euro V standards, expand crude oil input options and enhance production efficiency.
On January 7, BSR signed a contract with Germany’s Fichtner GmbH & Co KG and Việt Nam’s Institute of Tropical Biology (ITB) for environmental and social impact assessment (ESIA) consulting in line with international standards, a requirement for project financing.
Nghiêm Đức Dương, Deputy General Director of BSR and head of the Project Management Unit, said that progress is on track, with the consultancy contract for Front-End Engineering Design (FEED) signed and over 35 per cent of FEED work completed. In 2025, BSR plans to evaluate and approve the FEED, select EPC contractors, prepare the site and commence key construction activities.
The ESIA, conducted under international standards, is a prerequisite for accessing Export Credit Agency (ECA) funding, allowing BSR to secure loans at preferential interest rates for the project.
To meet substantial capital requirements, Vietnam Oil and Gas Group (Petrovietnam), BSR’s parent company, has endorsed increasing BSR’s charter capital to over VNĐ50 trillion.
BSR plans to issue bonus shares and pay share dividends totalling a 61.5 per cent ratio. Upon completing these procedures, BSR could finance 40–60 per cent of the project’s total investment, with the remainder sourced through ECA loans, domestic and international banks and green bonds.
Bùi Ngọc Dương, Chairman of the BSR Board of Directors, said: “Increasing charter capital is crucial for the Dung Quất Refinery upgrade and expansion project. This project is essential to enhancing capacity and product standards, ensuring sustainable development, safeguarding national energy security and fulfilling our long-term strategy through 2030, with a vision to 2045.” — VNS
