Vietnam’s state-run Binh Son Refining and Petrochemical Co (BSR) has inked an agreement with Azerbaijan’s state oil company SOCAR to buy 5 million barrels of crude in 2020, Reuters reported.
SOCAR Trading will provide 5 million barrels of Azeri Light crude to BSR’s Dung Quat refinery during the first half of 2020, BSR said in a statement on its website.
The company said Azerbaijani crude would also become one of its strategic crude oil products from 2020, following Vietnam’s abolishment of an import tax on crude oil which took effect from November.
Vietnam has been relying more on imported crude due to a slowdown in domestic output as reserves at its existing fields decline.
The country’s crude oil imports during the first 11 months of this year rose 66 percent from a year earlier to 7.4 million tons (54.5 million barrels).
Headquartered in Geneva, SOCAR Trading was incorporated in December 2007 as the marketing arm of SOCAR with a mandate to market Azerbaijani barrels produced from the Azeri-Chirag-Guneshli field and other surrounding fields in Azerbaijan.
SOCAR Trading has a number of offices that aid its global growth. The company relies on its 5 main trading offices strategically located in international trading hubs such as Geneva, London, Singapore, Dubai and Houston in addition to several representative offices.
SOCAR Trading’s second largest office is located in Singapore where the company markets Azerbaijani crude in the East as well as trade different products and continue to develop business with its Asian partners.
From Dubai, SOCAR Trading develops business in several locations in the Arabian Gulf and East Africa regions.