PVOIL - BSR strengthen value chain and promote biofuel development

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Both BSR and PVOIL are key subsidiaries of Petrovietnam. Over 17 years of cooperation in distributing products from the Dung Quat Refinery, the two entities have maintained effective long-term contracts while also signing supplementary short-term agreements to increase sales volume, expand cooperation scale, and enhance value chain efficiency within the Petrovietnam ecosystem. Their collaboration has been increasingly strengthened, contributing to stable supply and improved business performance.

The conference was attended by Mr. Nguyen Viet Thang, President & CEO of BSR; Mr. Nguyen Ngoc Quynh, Member of the Board of Directors of BSR; Mr. Nguyen Dang Trinh, President & CEO of PVOIL; Mr. Le Trung Hung, Vice President of PVOIL; along with leaders of functional divisions from both organizations.

Mr. Nguyen Dang Trinh, President & CEO of PVOIL, delivers the opening remarks at the conference

The event provided an opportunity for both parties to review the implementation of Q1 2026 product offtake contracts and to outline coordination plans for the upcoming period, including enhanced market information sharing, solutions to stabilize supply, strengthen value chain integration, and promote the biofuel program in support of national energy security.

The conference took place amid continued volatility in the global energy market due to geopolitical factors, placing increasing pressure on ensuring stable domestic petroleum supply. At the same time, the nationwide rollout of E5/E10 biofuels requires closer coordination between production and distribution entities.

Mr. Nguyen Viet Thang, President & CEO of BSR, delivers the opening remarks at the conference

In his opening remarks, Mr. Nguyen Dang Trinh stated that over 17 years since the commissioning of the Dung Quat Refinery, cooperation between PVOIL and BSR has continuously strengthened and expanded. From an initial supplier–offtaker relationship, the two sides have gradually developed a comprehensive value chain linkage, spanning crude oil supply, blending coordination, and nationwide distribution.

According to Mr. Nguyen Dang Trinh, BSR and PVOIL are pioneers in building an integrated oil and gas value chain within Petrovietnam, playing a key role in ensuring domestic supply, improving business efficiency, optimizing costs, and enhancing competitiveness across the value chain. Their cooperation has deepened significantly, reflected in product supply and consumption, logistics optimization, product value enhancement, and the joint development of the E5/E10 biofuel supply chain.

Co-chairing the conference, Mr. Nguyen Viet Thang emphasized that over 17 years, both entities have navigated multiple challenging phases of the energy market together, further strengthening their partnership. During this period, BSR has produced over 100 million m³ of petroleum products, of which PVOIL has consumed nearly 30 million m³, equivalent to approximately 25% of total output - providing a solid foundation for future cooperation expansion.

The relationship between the two entities has evolved from a conventional trading partnership to a strategic partnership, and now toward a deeper value chain integration model. Beyond supply and distribution, both sides are collaborating in blending, production, and business activities.

Presentations at the conference focused on reviewing Q1 2026 contract performance, evaluating coordination in delivery, scheduling, and blending operations, and proposing solutions to ensure supply - particularly base gasoline for biofuel blending. The two sides also agreed on key directions for future cooperation.

Following discussions, BSR President & CEO Nguyen Viet Thang acknowledged the effective coordination between the two entities, especially amid market volatility in the early months of the year. He expressed confidence that both sides will continue leveraging their strengths, optimizing infrastructure utilization, minimizing risks, and ensuring mutual benefits.

Mr. Le Trung Hung, Vice President of PVOIL, delivers remarks at the conference

Regarding the rollout of E10 biofuel, BSR leadership emphasized the need for prompt and coordinated solutions, as this represents a new production and business model requiring adjustments in production processes, quality management, and distribution systems.

Mr. Nguyen Viet Thang noted that April 2026 marks a critical transition period in biofuel implementation, which may present initial challenges. However, with the strong foundation of cooperation, both entities are well-positioned to successfully implement the program, contributing to supply stability and improved business efficiency.

In his concluding remarks, Mr. Nguyen Dang Trinh called for continued close coordination in E5/E10 blending activities starting from April, ensuring alignment between BSR’s production plans and PVOIL’s blending and distribution strategies, while developing solutions to avoid operational bottlenecks and maximize overall value chain efficiency.

Leaders of both entities agreed to further promote the value chain integration model and enhance cooperation in biofuel production, blending, and distribution, contributing to stable supply and national energy security.

The conference is considered a significant milestone in strengthening cooperation between PVOIL and BSR, contributing to the effective implementation of the Government’s biofuel roadmap toward a more sustainable and efficient energy transition.

Representatives of both parties present reports and propose solutions

Overview of the conference

PVN