10-05-2025

Petrovietnam expanding partnerships in the energy sector

As part of the State diplomatic visit to the Republic of Azerbaijan from May 7 to 8, General Secretary Tô Lâm and President of the Republic of Azerbaijan Ilham Aliyev witnessed the signing ceremony of cooperation documents between Vietnam and Azerbaijan. Among these, the Vietnam National Industry, Energy Group (Petrovietnam) and its affiliates have exchanged key cooperation agreements in the energy sector.

Based on remarkable achievements of bilateral collaboration across various sectors for the past 33 years, followed by great cooperation potential and mutual belief in a brighter future, and to fulfill the aspirations of the people of the two nations, General Secretary of the Central Committee of the Communist Party of Vietnam Tô Lâm and H.E. Ilham Aliyev, the President of the Republic of Azerbaijan have unanimously agreed to adopt a Joint Statement on the elevation of Vietnam–Azerbaijan relations to a Strategic Partnership.

The Strategic Partnership between Vietnam and Azerbaijan is established to elevate the relationship of the two nations to a higher stature on both bilateral and multilateral levels. This upgrade will also strengthen and consolidate existing bilateral cooperation mechanisms, profoundly deepening the collaboration between the two countries.

Simultaneously, General Secretary Tô Lâm and the President of the Republic of Azerbaijan Ilham Aliyev have witnessed the exchange ceremony of collaboration documents between Vietnam and Azerbaijan, in which Petrovietnam and the Azerbaijan Ministry of Economy have exchanged the Memorandum on oil and gas exploration and production, technical services and education sectors.

In addition, Binh Son Petrochemical Refinery JSC (BSR) – an affiliate of Petrovietnam – and the Azerbaijan Ministry of Economy exchanged a Memorandum regarding long-term crude oil supply for Dung Quat Oil Refinery, involving BSR, Petrovietnam Oil JSC (PVOil), and SOCAR Trading Singapore.

Ever since 2009, PVOil and BSR – two of Petrovietnam’s affiliates – have signed multiple agreements and contracts with SOCAR Trading SA – a subsidiary of SOCAR – on Azeri crude oil supply for Dung Quat Oil Refinery.

Starting from 2010 till late January, 2025, SOCAR Trading Singapore (a branch of SOCAR Trading SA located in Singapore) has supplied 35 lots of Azeri oil with the aggregate amount of approximately 31.7 million barrels, which is equivalent to about 4.34 million tons, valued at around 2.55 billion USD for Dung Quat Oil Refinery.
Within the education sector, since 2010, Petrovietnam has signed long-term agreements with the Scientific-Research Institute of Oil, Gas Geotechnology and Chemistry of Oil, established under the Azerbaijan National Oil Academy. To actualize the signed terms, during the period of 2010 to 2014, the two parties have cooperatively arranged 27 education schemes for technical specialists of Petrovietnam working in Azerbaijan and Vietnam. It is expected that in 2025, the two sides will organize a specialized technical training program on drilling technology for Petrovietnam personnel in Vietnam.

In terms of the Strategic Partnership, Vietnam and Azerbaijan will continue to deepen cooperation across all sectors to ensure the pragmatic interests of the people of the two nations are maintained, contributing to peace, stability, collaboration and prosperity in the region and the world; focusing on areas such as: political and diplomatic affairs; economy, trade, energy, agriculture, environment, and transportation; defense and security; education and training, justice, culture, tourism, people-to-people exchanges, etc.

With such crucial collaboration document being exchanged between Petrovietnam, its affiliates and Azerbaijan’s enterprises, the actualization and enhancement of Strategic Partnership between Vietnam and Azerbaijan is strongly affirmed, therefore opening up greater cooperation potential for the new development period. This is also a vital step forward in implementing the development strategy of the Vietnam National Industry – Energy Group in the era of the nation's emergence.