Photo: vietbao A contract to supply crude oil for Vietnam’s Dung Quat refinery has just been signed between BP, the world renowned British oil giant, and Vietnamese partners. The Vietnamese partners consist of PV Oil (the PetroVietnam Oil Corporation) and the Binh Son Oil Refinery and Chemistry Company, Ltd. which manages and runs the Dung Quat Refinery. According to Vice Director of Binh Son Oil Refinery and Chemistry Company Nguyen Viet Thang, as the production of Vietnamese oilfields in general, and the Bach Ho oilfield in particular, is currently falling, the company is making an early move to secure a stable alternative input supply for its future production by seeking a supply of imported oil. As designed, the Dung Quat Refinery will need only some 3.5 million tones or 70.000 barrels of oil a day in 2009, but starting from 2010, when the refinery comes fully on-line, the demand for crude oil will rise to nearly 6.5 million tones a year, or around 135,000 barrels a … [Read more...] about Vietnam to import crude oil for its refinery
Crude oil production in June is estimated to reach 1.39 million tonnes, bringing the total output for the first 6 months of this year to 8.65 million tonnes, an increase of 20 percent compared to the same period last year, the Vietnam National Oil and Gas Group (PVN) announced at a press conference on June 18 in Hanoi. With the increasing levels of production, crude oil exports in June reached 1.37 million tonnes, bringing the amount for the first 6 months of this year to 8.35 million tonnes, up 18 percent against the same period last year. However, the price of crude oil on average in the first 6 months only rose to US$54 per barrel, less than half of the price in the same period last year. As a result, the turnover of crude oil exports only reached US$3.38 billion, US$2.22 billion less than in the same period last year. To ensure the targets for 2009, PVN will continue to work with oil contractors to start new projects to drill for more oil to increase annual production to 35-40 … [Read more...] about Crude oil production in first 6 months up 20 percent
Asian stocks rose across the board on Thursday as crude oil extended gains on hopes that big producers will cap production, improving investor sentiment for riskier assets. Crude oil remained the main market driver. U.S. crude was up 1.7 percent at $31.19 a barrel following a 7 percent jump on Wednesday after Iran voiced support for a Russia-Saudi-led move to freeze production to deal with the market glut that had pushed prices to 12-year lows. "While there has been some confusion as to whether 'support' equals action, oil traders are simply relieved that the world's fourth-largest holder of oil reserves is willing to cooperate," wrote Kathy Lien, managing director of FX strategy at BK Asset Management. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.4 percent, pulling further away from a three-week low struck last week when a widespread chill in risk appetite amid euro zone banking sector concerns depressed equities globally. Japan's Nikkei .N225 continued its … [Read more...] about Asia shares gain as crude oil bounce boosts risk assets
The Hanoi Times - Domestic gas prices have been increasing because of the world's price increases. However, analysts have also pointed out that it is because of the limited capability of domestic firms. The gas price always goes up and down in accordance with the crude oil price. However, a strange thing has been happening: While the crude oil price stays at low level, now at $41/barrel, the gas price on the world's market in the first two months of the year increased by $167.5/tonne in comparison with December 2008. This has prompted domestic gas firms to raise the gas price by VND20-30,000/12 kg tank so far this year. A 13 kg tank of Petrolimex is now retailing at VND265,000/tank, while 12.5 kg tank of Elf Gas Saigon has seen the price up by VND35,000 over the previous month, to VND230,000, and 12kg tank of Shell Gas at VND240,000. On average, the retail price of a 12kg gas tank in the north is hovering around VND230-240,000/tank. The prices in the south prove to be lower by … [Read more...] about Crude oil prices down, but gas prices up, why?
The Vietnam National Oil and Gas Group (PetroVietnam) is considering importing crude oil to run the Dung Quat refinery. Yesterday, PetroVietnam said that the Dung Quat Oil Refinery is scheduled to begin running on a trial basis in February 2009. In the first phase of operation, the refinery will use domestic crude oil sources, mainly from the Bach Ho (Black Tiger) oil field. However, the group is considering importing crude oil for Dung Quat to refine instead of using domestic oil. Explaining this, PetroVietnam said that it is because domestic crude oil, especially from the Black Tiger field, has very high quality which always goes for good prices. According to PetroVietnam, Dung Quat will need some 800,000 tonnes of crude oil for refining in 2009. The oil refinery will run with a full capacity of 6mil tonnes from 2010. PetroVietnam said it is negotiating with big partners, like BP and Shell, to reach an agreement on a long-term oil purchase. It is expected that the volume of crude … [Read more...] about PetroVietnam consider importing crude oil for Dung Quat refinery