Illustrative image (Photo: congthuong.vn)

The expansion will increase the capacity of the refinery to 171,000 barrels per day from the existing 148,000 barrels. The products will meet EURO 5 standards and comply with the government's mandatory environmental regulations.

The project will be implemented in the form of engineering, procurement and construction (EPC) within 37 months. It is expected to become operational in the first quarter of 2018.

Previously, during his working visit to BSR in early 2023, Prime Minister Pham Minh Chinh urged the Vietnam Oil and Gas Group (Petrovietnam) to leverage the plant's operations, and draw lessons from other projects to promptly and effectively implement the upgrade and expansion project in accordance with regulations and the schedule.

In a message sent to shareholders in 2023, the leadership of BSR emphasised the determination to maintain its position as a pioneering entity in the upstream segment of the petroleum industry's production activities.

The company has retained its leading position in the national oil refining industry, with a production capacity that meets over 30% of the domestic gasoline and diesel demand.

The project is expected to contribute to promoting socio-economic development in the country, especially in the central region, increasing domestic gasoline and oil production, thus ensuring national energy security and attracting more investors in the petroleum industry and relevant sectors.

Nguyen Van Hoi, Chairman of the Board of Directors of BSR, said the project aims to meet new emission standards as Vietnam has joined a number of international environmental conventions.

Regarding socio-economic effectiveness, once completed and put into operation, the project will annually contribute around 1.36 trillion VND (over 55.75 million USD) to the State budget, Hoi said.

After 15 years of operation, BSR has completed the final link in the Dung Quat Oil Refinery's operations, from crude oil extraction to the production of finished products, he noted.

With the determination to become a leading regional firm and an international player in terms of energy and oil refining, BSR will continue to make greater contributions to the national petroleum industry, Hoi stressed.

He also revealed BSR's strategic goal, saying that the firm is set to develop into a proactive and dynamic oil refining company with domestic and international competitiveness, therefore, the upgrade and expansion of the Dung Quat Oil Refinery represent a crucial milestone for BSR in realising its objective./.VNA