PetroVietnam oil production exceeds target

PetroVietnam oil production exceeds target

The Vietnam National Oil and Gas Group (PetroVietnam), or PVN, produced 9.23
million tonnes of oil in the first seven months of this year, exceeding the
target set for the period, said the group's CEO Nguyen Vu Truong Son.

Speaking at the meeting with Prime Minister Nguyen Xuan Phuc in Ha Noi on
Saturday, Son said the group earned January-July revenue of VND278.5
trillion (US$12.21 billion), surpassing the seven-month target by 14 per
cent and fulfilling 64 per cent of the yearly goal, making an after-tax
profit of VND14.1 trillion.

"The PVN sent VND50.8 trillion to the State budget," said Son.

The CEO said the group made significant progress in oil drilling and
exploration, with the discovery of a new basin named Ca Trich (Sardinella)
well at block 11-2 and a number of oil wells with good volume, such as Thien
Nga-3X at the White Swan oil field and Bach Ho-48 well at the White Tiger
oil field.

Son also reported that the White Rabbit 3 oilfield saw its first stream of
oil extracted from well 37P on May 7, 13 days ahead of schedule.

"PetroVietnam implemented science, technology and training activities, as
well as ensuring oil and gas security and safety, and environmental and
labour safety. The prevention of fire at oil and gas facilities was
controlled while social welfare was ensured," said Son.

Based on the good results in the first seven months of this year, PVN
expects to earn VND471 trillion in revenue, exceeding its yearly goal by 7.4
per cent. About VND89 trillion will be contributed to the State budget, a 20
per cent increase over the plan.

"The group strives to produce at least 13.28 million tonnes of crude oil and
10.61 billion cubic metres of gas in 2017 and keep a close watch on world
oil prices to promptly cope with any fluctuations," said Son.

At the meeting, Prime Minister Phuc recognised the group's contributions to
affirming national sovereignty and increasing the State budget.

He urged the group to speed up restructuring, reorganising production, and
improving management in order to achieve its goals set for 2017 and
following years.

PVN boosts non-score business with Vinatex

In another development, heads of PetroVietnam met leaders of Viet Nam
National Textile and Garment Group (Vinatex) on Friday in an attempt to
continue implementing their agreement on fibre consumption of the Dinh Vu
Polyester Fibre Plant.

The plant is one of five major projects under weak management, causing
losses of State capital. PetroVietnam and Vinatex have invested nearly VND7
trillion (about $310 million) in the plant.

The two sides discussed issues related to the plant's operation, the testing
use of polyester fibre, supervision, evaluation of fibre quality, marketing
and training.

Vinatex General Director Le Tien Truong committed that the group would
enhance the consumption of the Dinh Vu Plant's polyester fibre by all the
group's units, from the current volume of 50 per cent.

"The Vinatex's consumption capacity was about 60,000 tonnes of polyester
fibre per year, meanwhile the local business demand has grown from 10 per
cent to 15 per cent annually," said Truong.

Truong said the price of fibre was between $1.1 and $1.12 per kilogramme,
higher than that of 2015, while the price of materials for polyester fibre
production is also lower than that of 2015 - two important elements for
resuming the plant's operation.

At the meeting, PVN CEO Son said his group would try to re-operate the Dinh
Vu plant in the shortest time, providing a stable supply of polyester fibre
for Vietnamese businesses.

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Link to Original Article:
http://english.vietnamnet.vn/fms/business/183339/petrovietnam-oil-production
-exceeds-target.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com