BSR Broadens Crude Slate, Strengthens Competitiveness

Two New Feedstocks, One Technological Advance

Petrovietnam Refining and Petrochemical Corporation (BSR), a member of Vietnam National Industry - Energy Group (Petrovietnam), has reached another milestone in expanding the crude slate of the Dung Quat Oil Refinery. Following detailed feedstock characterization, process simulation, blending-plan development and operational-control preparation, the refinery successfully processed Erha crude from Nigeria and Sao Vang–Dai Nguyet condensate (SVDN).

The assessment showed that the refinery could operate stably at near-limit throughput of 119–120% of design capacity. The maximum processing ratios were approximately 45% by volume for Erha and 12% for SVDN condensate. Because Erha contains more sulfur and metals than several crudes currently processed at Dung Quat, the 45% ratio is particularly notable. It demonstrates BSR engineers’ ability to control process parameters, protect equipment, maintain product quality and coordinate refinery units as an integrated system.

While Erha opens an additional import route from West Africa, SVDN condensate adds a valuable domestic feedstock. Condensate is a light hydrocarbon mixture that typically yields a high proportion of naphtha. Trial results at Dung Quat showed that SVDN can increase feedstock availability for gasoline-producing units and reduce the share of heavy fractions, thereby supporting a more efficient product slate and stronger overall refinery economics.

From Supply Diversification to Product-Slate Optimization

Dung Quat was originally designed primarily around Bach Ho crude, or blends in which Bach Ho accounted for the dominant share. As output from this traditional domestic source declined, securing alternative feedstocks became a strategic requirement. BSR therefore shifted from reliance on a limited group of familiar supplies to a diversified portfolio assessed simultaneously against technical compatibility, commercial terms, logistics feasibility and economic performance.

Since the beginning of 2026, BSR has successfully trial-processed three new crudes. The two feedstocks added in June brought the total number that Dung Quat can process to 40, including 12 domestic and 28 imported grades. Each additional option gives BSR more room to compare purchase prices, freight costs, delivery schedules, feedstock quality and the value of the products ultimately recovered.

Feedstock is the largest component of refinery production costs. Expanding the crude slate is therefore not merely an engineering achievement; it is also a supply-chain management tool. With more qualified sources, BSR can choose feedstocks according to market conditions, reduce disruption risk, capture price differentials and adjust blending ratios to match demand for gasoline, diesel, LPG, jet fuel and petrochemical products.

A Foundation for Energy Security and Long-Term Growth

The Dung Quat Oil Refinery has a design capacity of 6.5 million tonnes of crude per year, equivalent to 148,000 barrels per day, and supplies roughly 30% of Vietnam’s domestic petroleum-product demand. The plant has operated above design capacity during many periods while maintaining strict safety and quality requirements. Ensuring continuous feedstock for a facility of this importance therefore carries significance well beyond BSR’s own financial performance.

A broader crude slate improves BSR’s ability to respond when international supply is disrupted by geopolitical conflict, shipping interruptions or price volatility. With multiple feedstock options already validated from a technology standpoint, the company can plan procurement and production more proactively, helping sustain fuel supply to the market. At the national level, this capability forms an important additional layer of resilience alongside commercial inventories and market-management instruments.

The latest results also provide practical groundwork for the Dung Quat Refinery Expansion and Upgrade Project. Once completed, the project is expected to raise capacity from 148,000 to 171,000 barrels per day, produce Euro V-standard fuels and enhance the ability to process a wider range of crudes. Knowledge accumulated through research, trials and operation of the existing refinery will help BSR exploit the new configuration more effectively, shorten the learning curve and optimize investment returns.

The June 2026 milestone gives BSR additional room to select more cost-effective crude sources, strengthen competitiveness and prepare Dung Quat for its next phase of development. When technological capability is converted into market capability, feedstock diversification becomes a strategic advantage: it supports more sustainable operations, a more proactive domestic refining industry and stronger national energy security built on Vietnam’s own production capacity.