HANOI (Vietnam): Vietnam is facing a notable decrease in oil output at the start of 2023. The nation's biggest refinery has had to shut down its RFCC unit due to a technical issue, with the government predicting a reduction of between 20-25%. This could have serious implications for Vietnam, which relies heavily on petroleum products for energy. Businesses and citizens should be prepared for any potential disruptions while the problem is being addressed. Helping minimize the impact of this setback will help keep the economy running smoothly.

The government has announced a leak at the 200,000-barrel-per-day Nghi Son Refinery and Petrochemical's RFCC unit. This has caused serious disruption to production and could impact Vietnam's economy due to its dependence on petroleum products for energy needs. The situation is being addressed, and businesses and citizens should take necessary precautions in case of any further delays or disruptions.

To guarantee the necessary fuel supply for the local market before the end of the first quarter, the Ministry of Industry and Trade has urged traders to intensify their imports. This is an effort to make up for any shortfall caused by the disruption at Vietnam's largest oil refinery. The government is taking proactive steps to ensure that businesses and citizens are not adversely impacted by this issue.

Considering the fuel shortage caused by the disruption of Vietnam's largest oil refinery, Petrolimex has put out tenders since December 30th for the purchase of at least three cargoes of 500 ppm Sulphur gasoil for an arrival between January and February. This is to ensure adequate supply in the local market according to reports from several trading sources.

Nghi Son refinery is jointly held by four partners, all of whom are global corporations. Japan's Idemitsu Kosan Co (5019.T) owns 35.1%, Kuwait Petroleum holds 35.1%, 25.1% goes to Vietnam's state-owned oil firm PetroVietnam, and the remaining 4.7% belongs to Mitsui Chemicals Inc (4183.T). Together, these entities oversee operations at the refinery in Vietnam.