PetroVietnam upbeat despite falling oil price

Dec 31st at 13:36
31-12-2014 13:36:13+07:00

PetroVietnam upbeat despite falling oil price

Viet Nam National Oil and Gas Group (PetroVietnam) said yesterday that it would continue monitoring global oil prices closely in order to adjust oil exploration and production, ensuring national energy security as well as the group's economic benefits.

 

At a meeting yesterday in Ha Noi, PetroVietnam chairman Pham Xuan Son said the whole economy was benefiting from declining oil prices. While revenue from oil exports could shrink, profits would increase in other sectors.

"It's not good to see the oil price plunging too low, but at US$60-70 per barrel, it's not a big deal," Son said.

However, he added that if global oil prices fell below $60 per barrel, PetroVietnam would consider stopping production at the oil fields where production cost exceeded sales price.

The average production cost at most PetroVietnam oil fields was around $30-37 per barrel, according to Son. At four oil fields, production cost was more than $60 per barrel but the production capacity there was small, only around 450,000 tonnes in 2015.

PetroVietnam produced 17.39 million tonnes of oil in 2014, an increase of 7.3 per cent over the group's yearly target, while gas production for the first time hit 10.2 billion cubic metres, 7.4 per cent over the target. Oil and gas reserves also surpassed the goal by 37.5 per cent this year to reach 48.11 million tonnes of oil equivalent.

The group discovered nine new oil and gas places and began exploration at eight.

PetroVietnam deputy general director Le Minh Hong said the group met all business targets ahead of schedule despite the difficult domestic and global economic environment.

The whole group, including affiliates and subsidiaries, saw revenue of VND745.5 trillion ($34.8 billion), exceeding the target by 11.8 per cent. Revenue of the group itself was VND370 trillion ($17.3 billion). Total profit was VND46 trillion ($2.1 billion). The group contributed VND178.1 trillion ($8.3 billion) to the State Budget.

Production of electricity, fertiliser and petroleum exceeded targets by 5-23 per cent. Electricity production reached 16.48 billion kWh, a rise of 5 per cent over the plan. Fertiliser production hit 1.64 million tonnes, up 7.7 per cent, and petrol production reached 5.71 million tonnes, up 23.2 per cent.

In 2015, PetroVietnam aims to produce 26.6 million tonnes of oil equivalent, including 16.8 million tonnes of oil and 9.8 billion cubic metres of gas.

The electricity output target was set at 18.50 billion kWh, fertiliser production at 1.525 million tonnes and petrol production at 5.55 million tonnes.

The group also prepared revenue scenarios depending on global oil prices ranging from VND515.1 trillion ($24 billion) at the oil price of $60 per barrel to VND718.4 trillion ($33.6 billion) at the oil price of $100 per barrel.

On the issue of investment overseas, Son said overseas investment was a long-term strategy and should not be affected by short-term oil price fluctuations. However, the group would strengthen risk management for existing projects while seeking opportunities to buy oil fields overseas at cheap prices.

bizhub



NEWS SAME CATEGORY

Ho Chi Minh City chairman urges gov’t to stockpile oil amid slumping prices

Vietnam’s government should consider stockpiling more crude oil in case the global oil situation worsens, Le Hoang Quan, Chairman of Ho Chi Minh City proposed...

Fiercer competition looms in steel sector next year

Experts believe domestic steel firms will have to deal with an increasing competition triggered by cheap Chinese alloy steel imports, more steel imports from...

Coffee meets new standards

Around 19,000 coffee farmers in Viet Nam have adopted the international 4C (Common Code for Coffee Community) standards for sustainable production and trading with...

Vietnam launches first rice bran oil product

Cai Lan Oils & Fat Industries Co., Ltd (Calofic) introduced a new line of its Neptune oil brand on December 17 - a premium rice bran oil – marking Vietnam’s first...

Binh Son petitions MoF to increase import tax of E5

The Tax Policy Department under the Ministry of Finance is considering a plea submitted by Binh Son Refining and Petrochemical Company Limited (BSR) to raise import...

Vinacomin set to produce 38 million tonnes of coal next year

The Viet Nam National Coal and Mineral Industries Holding Corporation (Vinacomin) aims to produce 38 million tonnes of coal in 2015, generating VND57 trillion ($2.7...

Rice exporters expect weaker sales to G2G markets in 2015

Vietnamese rice exporters say they are uncertain about export volume to the concentrated market (government-to-government, or G2G) in 2015 because of stiffer...

Petrol prices cut again, touch four-year low

The national retail petrol prices have been slashed by VND2,058 (US$0.09) per litre from 3pm on December 22, the Viet Nam National Petroleum Group (Petrolimex) said.

VN cashew exports approach new high

Viet Nam expects to gain US$2 billion from cashew exports this year, according to the Viet Nam Cashew Association (Vinacas).

Can Tho rice exports to reach 5.85 million tonnes this year

The Cuu Long (Mekong) Delta this year exported 5.6 million tonnes of rice, as of December 15.

Commodity prices


MOST READ


Back To Top