PetroVietnam looks to secure long-term crude supply deal with ExxonMobil

State-owned PetroVietnam has said it is looking to secure a long-term crude supply deal with ExxonMobil for its 130,000 b/d refinery at Dung Quat.

During a meeting on June 27 with Peter Lavoy, senior director of international government relations for Asia-Pacific at ExxonMobil, PetroVietnam's deputy director Le Manh Cuong expressed interest in deepening business cooperation between the two companies.

Cuong asked PV Oil and Binh Son Refining and Petrochemical representatives, who attended the meeting, to negotiate a long-term framework agreement for purchasing crude oil from ExxonMobil for Dung Quat refinery, according to the statement on June 28.

PV Oil is the leading crude oil trader in Vietnam and BSR is the operator of Dung Quat. Both are subsidiaries of PetroVietnam. BSR has said it is working on an expansion plan, with a cost of $1.49 billion, which is expected to be completed in 2028.

Boosting bilateral trade

Crude oil trade between PetroVietnam and ExxonMobil will help increase bilateral trade between Vietnam and the US, PetroVietnam said.

The company's plan to purchase crude oil from ExxonMobil comes at a time when energy companies in Vietnam are joining the government and stepping up efforts to reduce the country's trade deficit with the US, which amounted to $123.5 billion in 2024, up 18.1% from 2023.

Another PetroVietnam subsidiary, PV Gas, signed two agreements in March -- one with ConocoPhillips and the other with Excelerate Energy -- to secure long term LNG supplies.

Vietnam and the US are in talks for a trade deal following the latter's imposition of a 46% reciprocal tariff on the Southeast Asian country on April 2.

At the June 27 meeting, Lavoy said ExxonMobil was exploring the possibility of building a large petrochemical complex in Asia. PetroVietnam's Cuong has highlighted some potential sites in Vietnam for ExxonMobil to consider.