BSR’s Agile Change Management Strategy
BSR has swiftly adapted to the decline in oil prices to withstand and overcome the current challenging period. BSR has developed and implemented a change management strategy, focusing on maintaining operational agility, optimizing available resources, cost-cutting, enhancing market forecasting, developing response scenarios, and flexibly adjusting production plans to market changes.
Regarding crude oil and feedstock, BSR has intensified the search for and processing of new types of oil, especially imported oil, to enhance the refinery’s flexibility. Additionally, BSR has seized market opportunities by choosing the right timing for purchasing to increase the possibility of securing imported crude oil and exploring new oil sources.
BSR continues to seek opportunities to import processing constituents to improve economic efficiency. The company is studying the processing of VGO/Residue (intermediate constituents) to ensure the capacity of the RFCC workshop when processing oil with low residue content. Simultaneously, BSR has also tested and adopted new types of catalysts and additives to enhance competitiveness and optimize production.
BSR always encourages its employees to propose initiatives and innovations to improve production and business efficiency and reduce costs.
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In terms of optimizing the product mix, BSR has successfully researched and applied an increase in the output of high-value products such as ADO, Jet-A1, and PP. They have also increased the ratio of Mogas 95/Mogas 92 from the initial design of 40%/60% to over 70%/30%. BSR continues to implement improvement solutions to increase the ratio of Mogas 95, aiming to expand its market share in the coming years.
In product consumption, BSR regularly evaluates and analyzes the market situation to devise appropriate solutions. The company proactively builds preventive measures and limits the impact in case of oil price adjustments by increasing operating capacity, selling products quickly, and maintaining reasonable inventory levels to minimize the risk of reduced inventory value. They also focus on enhancing sales activities and adopting flexible sales policies.
Alongside solutions for crude oil and the market, maintenance work is organized periodically, efficiently, and cost-effectively, ensuring safe operation and stable functioning of the refinery. BSR focuses on preventive maintenance and reducing maintenance time, enhancing capabilities, and applying scientific and technological solutions to improve labor productivity, equipment safety, reliability, and product quality, ultimately reducing production costs.
 BSR’s product export port.
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BSR vigorously implements comprehensive solutions for effective risk control at the refinery, researches and deploys solutions to reduce maintenance costs, alters operating modes, and explores the development and application of new chemical and petrochemical products, advanced materials, and clean fuels from domestic raw materials.
Notably, in terms of management, BSR aims to venture into new business areas, including crude oil and petrochemical product trading, and providing services such as operation and maintenance, total maintenance management, project management, safety management, quality assurance/quality control (QA/QC), and training.
BSR regularly updates and improves its management and risk management systems to align with legal regulations and the company’s development strategy. BSR promotes digital transformation to drive the realization of development orientations, risk management, smart production models, and ensure the efficiency of the enterprise’s core functions.
Regarding the practice of thrift and anti-waste, BSR has issued the Program for Thrift Practice and Anti-Waste for 2024, the Directive to Improve Production and Business Efficiency in the Last Months of 2024 to Complete the 2024 Management Plan, and the Directive on Anti-Waste in the New Context. The company sets the goal of striving to optimize and reduce production and business costs by at least 10-15% compared to the plan (excluding crude oil costs and fixed asset depreciation).
Maintaining Safe and Stable Refinery Operations and Promoting Scientific Research
Following the government’s directive on ensuring the country’s energy security and preventing fuel shortages, while also fulfilling its business functions, BSR has flexibly operated the Dung Quat Refinery, optimizing the capacity of each technology workshop and adjusting the product mix to meet market demands. This has contributed to mitigating the adverse effects of fluctuations in the fuel market.
BSR also attaches great importance to researching and developing new products, especially those with high market demand and prices. In the past, BSR has optimized the market share of new products. Specifically, BSR has developed and commercially launched 14 new products, including 6 new PP resin grades (T-3045, T-3050, I3085, I-3150, BOPP, TF4035) and 8 new fuel products, of which 3 are special fuels for national defense (JetA-1K, ADO-L62, A83 gasoline), 1 marine fuel (Marine FO), and 4 other products as petrochemical feedstock: Treared-LCO, Full Range Naphtha, RFCC Naphtha, and Mixed C4.
BSR highly values unity and corporate culture.
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Energy-saving efforts have been made through the implementation of over 70 technical improvement solutions, significantly enhancing energy efficiency across the Dung Quat Refinery. Specifically, the Energy Intensive Index (EII), which characterizes the refinery’s energy efficiency, has decreased considerably from 118% before 2015 to 104%-106% in 2020-2023 and is expected to reach around 100% after the 5th overall maintenance of the refinery. Correspondingly, internal energy consumption has decreased from over 7.4% to 6.8%. According to Solomon’s assessment, a 1% reduction in the EII index is equivalent to saving approximately $2.6 million per year.
By synchronously implementing these change management solutions in production and business activities, BSR expects to maintain stability in production and minimize risks arising from volatile and declining oil prices. At the same time, BSR is poised to seize opportunities when the market shows signs of recovery.
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