PetroViet­nam af­firms lead­ing role in econ­omy

Prime Min­is­ter hails con­tri­bu­tions made by the com­pany to eco­nomic growth

Viet Nam News - - BUSI­NESS -

HAØ NOÄI — The Vieät Nam Na­tional Oil and Gas Group (PetroViet­nam or PVN) has con­tin­ued to af­firm its role as one of lead­ing eco­nomic groups in the coun­try.

This, ac­cord­ing to Prime Min­is­ter Nguyeãn Xuaân Phuùc, is due to its achieve­ments in pro­duc­tion and busi­ness, re­struc­tur­ing, pri­vati­sa­tion and re­solv­ing out­stand­ing is­sues.

Speak­ing at a con­fer­ence held in Haø Noäi yes­ter­day, Phuùc 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 Vieät Nam’s eco­nomic growth in 2018.

PetroViet­nam’s gen­eral di­rec­tor Nguyeãn Vuõ Tröôøng Sôn 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 15 and 30 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 2018,” Sôn said.

PetroViet­nam re­ported oil and gas pro­duc­tion out­put of 23.98 mil­lion tonnes in 2018, sur­pass­ing its tar­get by 5 per cent.

Of which, crude oil out­put reached 13.97 tonnes last year, post­ing 5.6 per cent year-on-year rise. Its gas out­put was 10.01 bil­lion cu.m, sur­pass­ing 4.3 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 2018, which had im­proved sig­nif­i­cantly com­pared to three years ago. Its to­tal rev­enue reached VNÑ626.8 tri­il­lion, an in­crease of 26 per cent com­pared to 2017 and con­tribut­ing VNÑ121.3 tril­lion to the State ud­get, up 24 per cent from last year.

Sôn said PetroViet­nam aimed to com­plete the plan to in­crease oil and gas re­serves of 10-15 mil­lion tonnes of oil; ex­ploit­ing 22.06 mil­lion tonnes of oil. It would pro­duce 1.58 mil­lion tonnes of ni­tro­gen; 21.6 bil­lion kWh of elec­tric­ity and pro­duc­ing 10.35 mil­lion tonnes of gaso­line.

With the 2019 oil price plan ap­proved by the Na­tional As­sem­bly of US$65 a bar­rel, the group’s rev­enue was ex­pected to reach VNÑ612.2 tril­lion, con­sol­i­dated af­ter-tax profit of VNÑ31.3 tril­lion and con­tribut­ing VNÑ87.5 tril­lion to the State bud­get.

Recog­nis­ing PetroViet­nam’s dif­fi­cul­ties, PM Phuùc 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 2019.

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 Thaùi Bình 2 Ther­mal Power Plant, Nam Coân Sôn (phase 2), 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 Ñình Vuõ polyester fiber plant, three bio-fuel projects and Dung Quaát Ship­yard Plant in ac­cor­dance with the plans ap­proved by the PM. In ad­di­tion, it should con­tinue to di­vest in­vest­ment at its sub­sidiaries in 2017-20 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 2019.

He com­mit­ted 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

Prime Min­is­ter Nguyeãn Xuaân Phuùc and del­e­gates shake hands at the con­fer­ence. — VNA/VNS Photo Thoáng Nhaát

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