Vietnam: Oil exploitation exceeds Q1's target

Vietnam: Oil exploitation exceeds Q1's target

The Vietnam National Oil and Gas Group (PVN) produced about 6.45 million
tonnes of crude oil in the first quarter of this year, exceeding its
three-month plan by 5 percent.

Of the figure, 2.34 million tonnes of oil equivalent were exploited in
March, a 4.4 percent higher than the month target.

In the reviewed period, the group produced some 447,000 tonnes of
nitrogenous fertilizer for agricultural production, surpassing its set plan
by 9.7 percent. Especially, petrol production in the period reached 1.69
million tonnes, outpacing its set plan by 15.5 percent.

Although most of the business and production indices were beyond targets,
PVN has faced the most formidable challenges in recent 15 years. It said
that the global context of low oil prices spurred by abundant supply have
critical impacts on its core investments.

In addition, the group has come under pressure from the Government's
shake-up plan, which forced the enterprise to adjust its business scale as
well as orientation for sustainable development.

In a bid to fulfill plan for the second quarter and the whole year, PVN
General Director Nguyen Vu Truong Son said that the group has focused all
resources and measures on ensuring the effective operation of its five core
areas of exploration and exploitation of oil and gas, electricity, gas,
petrochemical industries and high-tech services. It will also continue
strict management of oil and gas exploring and exploiting activities and
giving priority to major projects like Ca Rong Do (Red Emperor) and Ca Voi
Xanh (Blue Whale) projects.

Particularly, the group will continue its business restructuring plan in
2016-2020 as approved by the Prime Minister. In 2017, PVN strives to exploit
some 23.81 million tonnes of oil equivalent, generate 20.1 billion kWh of
electricity to the national grid, and produce 1.52 million tonnes of
nitrogenous fertilizers and about 6.8 million tonnes of gasoline.

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Link to Original Article:
http://nangluongvietnam.vn/news/en/oil-and-gas/oil-exploitation-exceeds-q1s-
target.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com