Ten-month production and sales almost reach annual goals.
The Dung Quat Oil Refinery in central Quang Ngai province has received 40 million tons of crude oil since operations began in February 2009, producing 36 million tons of oil products, according to Mr. Nguyen Hoai Giang, Chairman of the Binh Son Refining and Petrochemical Company Limited (BSR), which owns Dung Quat.
Although certain factors have had an influence on operations, such as the fluctuating crude oil price, export and import tax policies, and exchange rates, the refinery has maintained a production rate of 103 per cent to 107 per cent of designed capacity.
“In the last ten months the refinery has produced 5.6 millions tons of products, representing 96 per cent of the annual plan,” Mr. Giang said.
“It sold 5.52 millions tons, or 94 per cent of yearly plan. Its State budget contributions were VND18.3 trillion ($818.37 million), or 114 per cent of annual expectations," he said.
BSR has signed a Front End Engineering Design contract with Amec Foster Wheeler Energy Limited and a Project Consultant contract with Quad Personnel Consultants on expanding the refinery.
During the process of expanding and upgrading, Mr. Giang said, improved technology will be adopted to use cheaper oil sources from the Middle East, working under the Euro 6 environmental standards. In the future the refinery will import about 20 per cent of its crude oil supply to mix with sources from the Bach Ho oil field.