BSR’s solution to ‘surmount difficulties’ when the oil and gas market fluctuates

Management and market forecasting

According to the company’s representative, the crude oil and product markets continue to fluctuate greatly and are unpredictable due to the impact of the Russia-Ukraine conflict, the demand for oil has increased sharply in many countries while the supply is still tight. These factors have a great impact on the market and are beyond the control of production and business units.

With the oil market fluctuating strongly, the forecasts of many organizations differ from reality, affecting BSR’s business operations. However, with the spirit of high concentration, in order to be proactive in responding to and maintaining production and business activities, the company has been active in management and market forecasting.

Specifically, the company established a market research and development team in a volatile world; formulating plans for production, trading and inventory of crude oil and products according to scenarios of market fluctuations and epidemics; business plan is continuously updated 2 times per month on the basis of forecasts of organizations as well as market assessment of BSR. In addition, the enterprise actively monitors the market, the price movements of crude oil and products as well as the situation of product consumption and inventory of customers; balance production and sales in order to take advantage of the rising price trend to bring efficiency to the company.

Supply chain solutions

In order to create competitive advantages, stabilize production, business and profits, BSR reduces costs and makes use of the supply chain available in the market to create a competitive advantage in the domestic market. To achieve the target, the unit improves its initiative, makes use of available resources to ensure stable input, output and refining profit.

BSR’s supply chain is built on using strengths to take advantage of opportunities. Specifically, using Vietnamese oils that are suitable for current technology configurations with low transportation costs and availability, minimizing risks and impacts due to market fluctuations and price fluctuations. . Concentrating on consuming products in the domestic market with competitive advantages, increasing the use of chain links between units/partners for the distribution of BSR’s products. Focusing on key customers and suppliers with long-term relationships to link input – processing – output supply chains.

Solutions for crude oil, input materials

BSR has worked with domestic oil owners on the purchase and sale of oils under long-term 5-year contracts. Currently, this unit has signed a long-term Principle Contract for the period 2021-2024 for Bach Ho and Dai Hung crude oil.

The company also increased the search and processing of new oils to improve the plant’s flexibility and increase its ability to capture market opportunities. Strengthen coordination to control loss during transportation to reduce costs. Optimizing the loading schedule between mines helps transport ships to rotate, load and unload to reduce costs. On the basis of the orientations on the BSR has actively overcome many difficulties and challenges. Especially in the early period of 2022 when the Russia – Ukraine war is affecting the oil supply in the crude oil market as well as the global supply chain crisis, these orientations will become more effective.

With the initiative in planning and focusing on implementing solutions, taking full advantage of opportunities, although the global oil supply is affected, BSR said that it has arranged enough crude oil input sources to meet the demand. meet the demand of operating with high capacity of the plant.

Product consumption solution

Over the past time, BSR said that it has closely followed market developments, maximized operating capacity, accelerated sales and maximized product sales in order to increase supply to meet domestic and current demand. Realizing profits in the context of high refining margins and high product prices. The company took advantage of opportunities to increase capacity to optimize production efficiency and market share of BSR in the domestic petroleum market. “Currently, BSR has a great advantage over other sources of goods thanks to the stable production operation of the factory, ensuring timely supply for customers,” the company representative said.

On the other hand, with the criterion that Dung Quat products are always available in markets, especially at times when the market has bad developments, leading to difficulties in consuming petroleum products of Dung Quat Oil Refinery. , BSR has and will strengthen coordination between units in order to share resources and resources of units such as storage, transportation, raw materials…

Comprehensive solutions

Besides crude oil and market solutions, the company’s ultimate priority is to maintain Dung Quat Oil Refinery in safe, continuous and stable operation. The unit plans to gradually increase the factory capacity to both meet market demand and concretize profits.

In addition, investment is a growth-promoting factor, so BSR invests in medium and long-term items such as optimizing energy use with projects such as stations, 110KV transmission lines; rooftop solar power. Construction of two additional crude oil tanks and product storage tanks; invest in import pipelines and storage tanks for Condensate, TDAO, and Residue components. Invest in equipment to process input crude oil to expand the basket of mercury oil, Tramp Amine; upgrading and expanding PP factory; invest in RON additive mixing system (MTBE, CN120…).

The Dan (Image: BSR)