PetroVietnam affirmed its leading role in the economy: PM

Prime Minister Nguyễn Xuân Phúc and delegates shake hands at the conference.—VNA/VNS Thống Nhất

HÀ NỘI — The Việt Nam National Oil and Gas Group (PetroVietnam) has continued to affirm its role as one of leading economic groups in the country.

This, according to Prime Minister Nguyễn Xuân Phúc, is due to its achievements in production and business, restructuring, privatisation and resolving outstanding issues.

Speaking at a conference held in Hà Nội yesterday, Phúc said the group has not only made an important contribution to the nation’s livelihood for many years, contributing a large amount to the State budget but also played a role in foreign affairs and national defense. In particular, PVN has contributed significantly to Việt Nam’s economic growth in  二0 一 八.

PetroVietnam’s general director Nguyễn Vũ Trường Sơn said the group had launched new tasks amid difficult and fluctuating crude oil prices while its key operational oilfields have been exploited for a long time, causing a decrease in annual output of between  一 五 and  三0 per cent.

The company also struggled to arrange capital for its exploration as the fund for oil and gas exploration has not been approved.

“Currently, the rate of PVN’s investment in exploration has been very small compared to foreign oil and gas contractors. However, with the right solutions, PVN meet Government targets for  二0 一 八,” Sơn said.

PetroVietnam reported oil and gas production output of  二 三. 九 八 million tonnes in  二0 一 八, surpassing its target by  五 per cent.

Of which, crude oil output reached  一 三. 九 七 tonnes last year, posting  五. 六 per cent year-on-year rise. Its gas output was  一0.0 一 billion cu.m, surpassing  四. 三 per cent of the whole year’s set target.

The PetroVietnam’s gas pipeline system, electricity, fertiliser and petrochemical plants had been safely operated and regular maintenance in accordance with the requirements of technology design and completion exceed the planned progress.

It has surpassed the financial targets thanks to oil price in  二0 一 八, which had improved significantly compared to three years ago. Its total revenue reached VNĐ 六 二 六. 八 triillion, an increase of  二 六 per cent compared to  二0 一 七 and contributing VNĐ 一 二 一. 三 trillion to the State udget, up  二 四 per cent from last year.

Sơn said PetroVietnam aimed to complete the plan to increase oil and gas reserves of  一0- 一 五 million tonnes of oil; exploiting  二 二.0 六 million tonnes of oil. It would produce  一. 五 八 million tonnes of nitrogen;  二 一. 六 billion kWh of electricity and producing  一0. 三 五 million tonnes of gasoline.

With the  二0 一 九 oil price plan approved by the National Assembly of US$ 六 五 a barrel, the group’s revenue was expected to reach VNĐ 六 一 二. 二 trillion, consolidated after-tax profit of VNĐ 三 一. 三 trillion and contributing VNĐ 八 七. 五 trillion to the State budget.

Recognising PetroVietnam’s difficulties, PM Phúc said the group should accelerate investment at Block B and Blue Whale gas projects to compensate for crude oil production decreases when its main mines have seen reduced production and the remaining ones are far from the shore.

In particular, PetroVietnam needs to strengthen its oil and gas exploration, closely control the development progress of mines which would be put into operation in  二0 一 九.

It was urged to be a pioneer in the Fourth Industrial Revolution, promoting the application of new science and technology to search and explore oil and gas to improve operational efficiency.

In the context of fluctuating oil market, PetroVietnam should have solutions to ensure balance of capital, cash flow for development and investment, especially for key projects such as Thái Bình  二 Thermal Power Plant, Nam Côn Sơn (phase  二), Block B project chain and Blue Whale, he said.

At the same time, it should focus on resolving difficulties and obstacles in five weak projects including Đình Vũ polyester fiber plant, three bio-fuel projects and Dung Quất Shipyard Plant in accordance with the plans approved by the PM. In addition, it should continue to divest investment at its subsidiaries in  二0 一 七- 二0 period as well as restructuring process.

The PM also required PetroVietnam to co-operate with ministries and agencies to calculate production and business targets to have more contribution to the GDP growth and State budget in  二0 一 九.

He co妹妹itted to work with PetroVietnam in resolving difficulties while asking ministries to have time supports to the group in implementing exploration and key projects as well as ineffective projects. — VNS