Commodity trader Vitol on Wednesday said Vitol Asia has signed a crude oil sale and purchase agreement with Nghi Son Petroleum Products Distribution Branch, authorised by Vietnam's state energy firm Petrovietnam.
Vitol said the agreement is for the supply of one crude oil cargo to Nghi Son Refinery and Petrochemical. The trader added this marks the first crude oil supply transaction between Petrovietnam and Vitol for the Nghi Son Refinery.
It also represents a practical step in implementing the memorandum of understanding signed between Petrovietnam and Vitol in Singapore, Vitol said.
Commodity traders like Vitol have global networks to source supply from that they can ship to refiners in Asia which have lost access to Middle Eastern supply in the wake of the Strait of Hormuz closure.
In May, Petrovietnam had said it received its first cargo of Djeno crude oil from Republic of the Congo for Nghi Son Refinery and Petrochemical.
Nghi Son had said earlier it is considering quarterly tenders and spot cargo procurement to secure enough crude oil for its operations.
"During the session, Petrovietnam and Vitol also reviewed opportunities to deepen co-operation across the energy sector, including crude oil, petroleum products, LNG, strategic storage and related activities," Vitol said.
(Reporting by Anjana Anil in Bengaluru; Editing by Chris Reese)
