The Vietnam Oil and Gas Group (PetroVietnam) reported total revenue of VND283.5 trillion (US$12.2 billion) in the first half of this year, contributing VND32 trillion to the State budget.

Ca Mau power plant (Photo: PetroVietnam)

Gas output touched 3.81 billion cu.m, fulfilling the six-month target and 49.4% of the yearly plan.Total oil production in the period reached 10.73 million tonnes of oil equivalent, exceeding by 4.2% the six-month plan and equal to 52.7% of the yearly plan, of which the output of crude oil reached 5.92 million tonnes, exceeding the six-month plan by 8%.

Electricity production in six months reached 10.9 billion kWh, completing 98.7% of the six-month plan and 50.5% of the yearly plan.

Nitro fertiliser production totalled 962,400 tonnes, exceeding the six-month plan by 13.5% and equaling 61.6% of the yearly plan. Petrol production reached 6.4 million tonnes, meeting 96.3% of the six-month plan and 64.2% of the yearly plan.

PetroVietnam’s General Director Le Manh Hung said that the group will continue to keep close watch on market developments, and keep updated on the trend of supply and demand, inventory of crude oil, petrol products and petrochemicals over the world and in the country in order to timely make responsive decisions with the goal of optimising benefits, compensating for losses during the COVID-19 pandemic.

The group will also coordinate closely with contractors in taking synchronous measures to ensure the completion of exploration plans and monitor the development process of oil fields and works as well as the safe and stable operation of factories, Hung stated.

He added that his group will focus on speeding up procedures to boost disbursement in the remaining months of 2020, intensifying the application of technological solutions to reduce costs and increase productivity, and addressing difficulties facing five ineffective projects as mentioned in Decision No.1468 which was approved by the Prime Minister on September 29, 2017.

PetroVietnam has set a goal of reducing average crude oil exploitation costs in order to sustain business during the 2020-2025 period, even if crude oil price drops to US$30 per barrel.

During the recent third congress of the Party organisations at PetroVietnam for the 2020-2025 tenure, General Director Le Manh Hung said the group is facing difficulties during 2015-2020, especially in exploration and exploitation.

Secretary of the Party Committee and Chairman of the Board of Directors at PetroVietnam, Tran Sy Thanh, asked the group to focus on two key tasks. The first is following the Resolution adopted by the fourth plenum of the 12th Party Central Committee on Party building and rectification while preventing and driving back degradation in political thought, moral virtue, and lifestyle.

The second is improving corporate governance to achieve set goals, especially those regarding production and trade as well as finance, and paying attention to petrol price forecasts to better control risks, he said.

PetroVietnam will put into operation Lot B and the Ca Voi Xanh gas fields, the largest in Vietnam, during the 2020-2025 period.

The group’s total revenue in 2015-2020 is estimated at VND3,397 trillion (over US$146.37 billion) and State budget contributions at VND592 trillion. After-tax profit is expected to reach VND170 trillion.

It expects to tap 25-30 million tonnes of oil equivalent each year after 2024.

The Vietnam Oil and Gas Group, formerly Vietnam Oil and Gas General Department, is a state-owned corporation established since September 3, 1975. PetroVietnam is engaged in the energy sector, including oil and gas and renewable energy. With more than 40 years, PetroVietnam has been growing into a fully integrated business model, ranging from exploration – production, refinery – petrochemical, gas industry, gas to power/fertiliser and petroleum technical services. As a leading corporation, the group has a key role in accelerating national economic growth, high-qualified human resources development, international integration and overseas investment.