Board Of Director Of Pvn Worked At Binh Son Refinery

General Director of BSR - Mr. Tran Ngoc Nguyen reported about the production and business of in the first half of the year 2016, he said that the fluctuation of crude oil price and products, exchange rates and policy mechanisms had a strong impact to BSR's production and business in the first half of 2016. 

Leading the mission in BSR is Mr. Nguyen Vu Truong Son – General Director of PVN

From the beginning of 2016 up to now, apart from difference of import tax of diesel products and JET A1 of BSR with other products of the same type according to ATIGA, BSR is facing with difference of import tax of 10% of gasoline, according to FTA Vietnam - Korea. On March 18^th, 2016, the Ministry of Finance issued Official Letter No. 189/BTC-QLG regulating the method of calculation of import tax in the base price formula of petrol. With this policy, the products of BSR will be further disadvantaged in consumption in the domestic market.

Prices of crude oil and products were lower than the same period of last year but showed signs of recovery. However, with an average of $ 39.77/barrel for the first six months of 2016, it is still much lower than the planned $ 60/barrel.

Despite the unfavorable fluctuations, under the direction of PVN with the cooperation and share from the customers as well as the initiative, efforts in the production and business of BSR staff, the result the business indicators were basically positive.

From the beginning of the year to now, the plant has been operating continuously, safely and stably, mastering the technology at an average capacity of 103-105% of designed capacity, ensuring the quality of products.

By the end of June 2016, the company has produced over 3.407 million tons of all kind products, reached 117% of the plan in the first 6 months and 58% of plan of year; consumed over 3.328 million tons of products, reached 115% of the plan in the first 6 months and 57% of the plan of year; turnover is estimated at over 35,119 billion VND; The state budget estimated is 6,141 billion dong.

Safety, environmental protection and fire prevention are always given special attention and good assurance. As of June 2016, BSR achieved over 7.4 million safety working hours, completed 4,524 safety hours training for 1,876 contractor employees and 23,562 hours for 5,903 BSR staff, recording 14,044 SAO cards.

Mr. Nguyen Vu Truong Son – General Director of PVN spoke at the meeting in BSR

Operation and Maintenance activities were performed as in the plan, especially BSR has been actively implementing the leakage control of the whole factory at the beginning of the year (Overall leak test), used Operation Logbook system on Maximo system for operating personnel.

Optimizing production operations and implementing savings, reducing costs to improve competitiveness has been paid special attention by BSR. Besides 9 transformational solutions and 15 operational adjustment measures which have been established since 2015, BSR has continuously promoted research and executed new solutions. The solutions brought the results such as improving the efficiency of crude oil by reducing the fuel consumption from 1,097 tons of crude oil / ton of current products to 1,090, increased gross internal energy consumption from the current 7.6% to 7.2%. Besides, in the first 6 months of the year, 34 dossiers had recognized as company improvements.

Relating to the plan expansion activities, up to now, BSR / DQRE has performed the tasks: Completed the topographic and geological survey for the overall design (FEED); completed 94% of compensation and ground clearance; The overall design has been selected 7/7 technology tender packages, 2 contracts have been signed.

The key task of BSR until the end of 2016 is to continue management and operation of BSR safely, stably and effectively within the designed capacity; Actively, flexible in the analyze and assess market as well as subjective and objective conditions of BSR to timely respond to fluctuations in oil prices, product prices, consumer’s demand and other issues affected the production and business efficiency. Highly focus on optimizing production costs; Step up the training, retraining and fostering of labor skills, ensuring human resources to meet the development demands of BSR; Prepare for the third maintenance as planned; continue to implement BSR's equitization plan under the direction of PVN; Apply all solutions to the investment management of BSR expansion project according to schedule.

Representatives of the Specialized Departments of PVN also contributed ideas for BSR to develop faster in the future. Specifically, Oil and Gas Processing Department asked BSR to review and ensure that the operation is absolutely safety for RFCC workshop. At the same time, BSR researched to increase the amount of cheap imported oil to increase profits. At present, BSR has processed 10 types of oil, compared with 75 types of oil can be processed, this is a modest figure.

General Director of BSR Tran Ngoc Nguyen reported of BSR production and business

Speak at the meeting, Mr. Le Manh Hung- Deputy General Director of PVN emphasized: BSR needs to quickly deploy the project to improve the competitiveness of Dung Quat Oil Refinery; upgrade 105% of the factory's production capacity will be synchronized and BSR will be restructured into a separate factory to create new motivation for the production group.

As the speech at the meeting, General Director of PVN Nguyen Vu Truong Son highly appreciated BSR's business results in the first 6 months of the year, the efforts to overcome and many difficulties of the collective of employees and the Board of Directors.

In order to complete the task of production and business in 2016, General Director of PVN – Mr. Nguyen Vu Truong Son asked BSR to implement the following groups of solutions: Research and expand the market of products; reduce production costs, management costs; promote financial policies . In production, Mr. Nguyen Vu Truong Son requested BSR to optimize technology, reduce waste and reduce fuel costs. BSR needs to develop a set of investment decisions for upgrading and expanding BSR, maximize the use of services in the sector and cooperate with foreign parties in the overall maintenance (third time) in April 2017. Finally, General Director of PVN instructed BSR to restructure PV Building and support the acceleration of BSR equitization process.

Then, the mission of Nguyen Vu Truong Son - General Director of PVN has observed the field of upgrading and expanding BSR and the Green Whale Gas-electric project likely to be executed near the palnt.

pvn.vn