Strengthening EPC contract management capacity for the Dung Quat Refinery upgrading and expansion project

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Updating the Latest Legal Framework

The workshop was held as the Dung Quat Refinery Upgrading and Expansion Project entered the EPC contract implementation phase. Given the project's scale, complexity and stringent requirements, effective management by the project owner, alongside the contractor's capabilities, is critical to controlling schedule, quality, costs and safety, as well as addressing issues that may arise throughout contract execution.

Overview of the workshop.

Speaking at the workshop, BSR General Director, DQRE - Mr Tran Thai Bao, who is in charge of the Dung Quat Refinery Upgrading and Expansion Project, emphasized the critical role of project management in the implementation of major projects.

For more than 17 years since the Dung Quat Refinery began operations, BSR has primarily focused on refinery management and operations, maintenance, and the development of its production and business activities. The implementation of the Dung Quat Refinery Upgrading and Expansion Project has now placed new demands on BSR's project management capabilities in the current context.

Against this backdrop, BSR proactively invited representatives from state management agencies, experts and organizations with extensive experience in implementing major EPC projects in the refining and petrochemical sector to exchange views and share practical lessons.

The discussions provided BSR's project team with valuable insights into potential challenges, lessons learned from previous projects and approaches that can be adapted to the management of the EPC Contract for the Dung Quat Refinery Upgrading and Expansion Project.

The workshop also provided an opportunity for participants to update their knowledge of the legal framework governing construction contracts, investment and construction management, and construction quality management. This serves as an important basis for BSR to manage the EPC Contract for the Dung Quat Refinery Upgrading and Expansion Project in compliance with regulations, clearly define the responsibilities of all parties and minimize potential legal risks during project implementation.

Mr. Nguyen Bac Thuy, Head of the Construction Economics and Contract Division under the Department of Construction Economics and Investment Management of the Ministry of Construction, shared updates on the industry's latest regulations. He particularly highlighted the scope of application for different types of construction contracts.

Drawing on his extensive experience in EPC contract management, Mr Nguyen Bac Thuy also outlined practical considerations during contract implementation. These insights will help BSR's project team better apply legal requirements to specific situations while clearly identifying the rights, obligations and responsibilities of all parties involved.

At the workshop, representatives of the State Authority for Construction Quality Inspection under the Ministry of Construction also provided information on the legal framework governing construction quality management.

For a large-scale project with stringent technical and safety requirements such as the Dung Quat Refinery Upgrading and Expansion Project, a thorough understanding of construction quality regulations is essential for inspection, supervision and control of contract performance.

Practical Experience from Major EPC Projects

Alongside discussions on the legal framework, another key focus of the workshop was the sharing of practical experience from organizations that have directly participated in major EPC projects in the refining and petrochemical sector, including PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo – Phu My) and PetroVietnam Ca Mau Fertilizer Joint Stock Company (PVCFC).

PVCFC Chairman - Mr. Van Tien Thanh shares experience from the implementation of the EPC contract for the Ca Mau Fertilizer Plant.

At the workshop, PVCFC Chairman - Mr Van Tien Thanh shared practical lessons learned from the implementation of the EPC contract for the Ca Mau Fertilizer Plant, covering project management and organization, coordination between the project owner and contractor, schedule control, and the handling of unforeseen issues.

Open discussions on both successes and challenges provided BSR with valuable experience in identifying risks at an early stage, proactively developing response scenarios and avoiding mistakes encountered by previous projects.

Through these exchanges, BSR's management team for the Dung Quat Refinery Upgrading and Expansion Project gained access to EPC management experience from a range of perspectives. The workshop also provided an opportunity for BSR to further strengthen its knowledge and practical experience to meet the management requirements of a project of such scale and complexity.

Highlighting the strategic importance of the Dung Quat Refinery Upgrading and Expansion Project, BSR President & CEO - Mr Nguyen Viet Thang called on the project team to manage and execute all work with rigor and close attention to detail.

In his concluding remarks, BSR President & CEO - Mr Nguyen Viet Thang emphasized that the success of the project would depend not only on the contractor, but to a large extent on the project owner's management capabilities.

As a key project laying the foundation for BSR's next phase of growth, the Dung Quat Refinery Upgrading and Expansion Project requires rigorous management, stronger discipline and continuous improvement in the quality and capabilities of its project team.

The BSR President & CEO also called for greater use of data-driven project management and artificial intelligence (AI), with digital tools gradually integrated into project management processes.

BSR aims to establish a dedicated data center for the Dung Quat Refinery Upgrading and Expansion Project and build an integrated data ecosystem to support EPC contract management. This will provide a foundation for more effective monitoring and control, while supporting timely and informed decision-making throughout project implementation.

By strengthening its understanding of the legal framework, drawing on lessons learned from previous projects, and developing data- and technology-driven management approaches, BSR is steadily enhancing its capabilities as the project owner in managing the EPC Contract.

This is a key factor in maintaining effective control over the implementation of the Dung Quat Refinery Upgrading and Expansion Project and ensuring that its requirements for schedule, quality, safety and overall efficiency are fully met.

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