Vietnam’s state energy firm Petrovietnam has received its first-ever cargo of Djeno crude oil from the Republic of the Congo, marking a significant shift in supply strategy for the country’s largest refinery as it works to broaden its crude oil sources and reduce dependence on a single supplier.
The cargo of 950,000 barrels was successfully unloaded at the Nghi Son Refinery and Petrochemical complex — a 200,000-barrel-per-day facility that had previously sourced its crude almost entirely from Kuwait. The move to diversify follows disruptions to Kuwaiti shipments that forced the refinery to seek alternative suppliers.
“Diversifying crude oil input sources is practically significant in enhancing raw material self-sufficiency, contributing to supporting stable refinery operations, and ensuring the supply of petroleum products to the domestic market,” Petrovietnam said in a statement, adding that it will continue to import crude oil for local refineries from multiple sources.
Nghi Son is also considering quarterly tenders and spot cargo procurement to secure a more flexible and stable crude supply going forward. The refinery’s shareholders include Japan’s Idemitsu Kosan and Kuwait Petroleum, each holding 35.1 per cent, with Petrovietnam holding 25.1 per cent and Mitsui Chemicals 4.7 per cent. The first Congolese cargo represents a new African supply relationship that could become a regular feature of Asia’s evolving crude import landscape.
Source: bairdmaritime.com