Dung Quat Refinery secures crude oil supply through July 2026; PVN to divest within one year

During the 2026 Annual General Meeting discussion on energy security, Bình Sơn Refinery and Petrochemical (BSR) leadership said the Dung Quất refinery is expected to operate at an annual average converted capacity of over 126.4% of design capacity in 2026. The company attributed the plan to securing crude supply through the end of July 2026 and developing a detailed contingency plan for geopolitical fluctuations.

Crude supply strategy and operating plan

With support from Vietnam Oil and Gas Group (PVN), BSR said it is entitled to purchase all domestically produced crude oil, which meets about 90% of its production needs. The remaining 10% is planned to be imported to support above-capacity operations, contracted from partners in the United States such as ExxonMobil and Chevron, as well as from West Africa.

BSR also said it has deployed an overhaul of the unmoored oil transfer system to receive large transport vessels, aiming to optimize input costs.

1Q/2026 performance and margin drivers

BSR reported that first-quarter 2026 profit reached 3,347 billion dong, exceeding the full-year target of 2,162 billion dong after only three months of operation.

The refinery crack spread improved to $11 per barrel. The company said product prices track import market prices and are not subject to output price caps.

BSR also cited existing tax policies as a direct support for profit margins, including exemption from Jet A1 aviation fuel tax. Company leadership said current product pricing aligns with imports and does not face output price controls, helping maintain stable financial performance. It added that current tax policies are also positively supporting margins for strategic fuels, particularly aviation fuels.

M&A and expansion plans

BSR Chairman Bui Ngoc Duong said the company is accelerating mergers and acquisitions to pursue its ambition of becoming one of the region’s top eight largest refineries by 2030. He stated that BSR aims to own and directly control condensate plants in the southern region.

In addition, BSR seeks opportunities to acquire storage facilities to improve logistics infrastructure and increase commercial output beyond the Dung Quất plant.

For the upgrade and expansion of the existing plant, BSR plans to invest nearly 8,600 billion dong in 2026 to prepare EPC contracts and break ground in Q3 this year, with the goal of completing the entire project by 2028.

HOSE listing readiness and capital restructuring

Regarding listing requirements on HOSE, BSR leadership confirmed coordination with the parent group to implement a capital restructuring plan. Under the plan, PVN is expected to divest or transfer shares to reduce ownership from 92.13% to below 90% within a year to meet conditions on minority shareholder ownership.

In the long term, BSR said state ownership could fall to 49% to attract international strategic partners with strong raw material resources.

Shareholder approvals at the AGM

BSR said all proposals were approved by shareholders, including a plan to rename the company to Joint Stock Company - Vietnam Oil Refinery Corporation and to appoint senior management.