PetroVietnam General Director Le Manh Hung speaks at the virtual meeting (Photo courtesy of PetroVietnam)Hanoi (VNA) - The Vietnam Oil and Gas Group (PetroVietnam) stillenjoyed profit of more than 10 trillion VND (430.6 million USD) and contributedover 38 trillion VND to the State budget in the first seven months of 2020despite Vietnam being hit by COVID-19.
It was anoutstanding result given that many of the leading oil and gas groups andcompanies around the world have posted significant losses this year, cut down theiroperational scale, and let employees go.
At a virtualmeeting between the group and its member units on August 7 regarding productionand business, General Director Le Manh Hung said that with the early andflexible implementation of a number of solutions in response to the “twin crises”of oil price fluctuations and COVID-19, the group maintained production andensured the supply of strategic commodities such as gas, electricity,fertiliser, and petrol for the economy.
Specifically, PetroVietnamcarried out five groups of general and detailed solutions in five operationalaspects, with a focus on the three fields most affected.
Production unitssuch as Vietsovpetro, the PetroVietnam Exploration Production Corporation(PVEP), Rusvietpetro, the Bien Dong Petroleum Operating Company (BDPOC), PVGAS,and the Binh Son Refining and Petrochemical JSC (BSR) reached or surpassedtargets set.
Total oil productionfrom January to July stood at 12.52 million tonnes of oil equivalent, exceedingthe seven-month plan by 5.3 percent and representing 61.5 percent of the annualplan. Electricity production in the period reached 12.75 billion kWh, meeting 99.3percent of the seven-month plan and 59 percent of the annual plan.
Nitro fertiliserproduction totalled 1.06 million tonnes, exceeding the seven-month plan by 6.7percent and equalling 67.7 percent of the annual plan. Petrol production was 7.37million tonnes, for 95 percent of the seven-month plan and 62.4 percent of the annualplan.
Overview of the virtual meeting in the southern region (Photo courtesy of PetroVietnam)Of note, PetroVietnam’sexploration activities recorded an important milestone last month when thegroup confirmed a large oil and gas reserve at Ken Bau well, which is expectedto open up more opportunities to attract investment in exploitation andprocessing, the gas power industry, and oil and gas services in the time tocome.
PetroVietnam alsosuccessfully put into operation the Song Hau Thermal Power Distribution Centreon July 10, signed a contract on management and operations with the NationalPower Transmission Corporation (EVNNPT), and successfully fired up Turbine 1 atthe Song Hau 1 Thermal Power Plant Project for the first time on July 28.
According to Hung,positive production and business results during January-July resulted in sound financialoutcomes, despite the average price of oil falling to 44 USD per barrel in theperiod, equal to just 73 percent of the planned price of 60 USD assigned for2020.
The group,therefore, reported total revenue of 327.8 trillion VND in the first sevenmonths of this year and profit of over 10 trillion VND, while contributing 38.7trillion VND to the State budget.
It has also exertedevery effort to cut unnecessary costs, saving 5.6 trillion VND, or 60.4 percentof the target, in the period.
Overview of the virtual meeting seen at Vietsovpetro (Photo courtesy of PetroVietnam)Given the complex developmentsof COVID-19 and oil prices remaining at around 40 USD per barrel, Hung said thegroup will maintain the synchronous implementation of solutions it has setforth and remain abreast of the disease’s developments as well as oil pricefluctuations to make a timely response.
The Vietnam Oiland Gas Group, formerly known as the Vietnam Oil and Gas General Department, isa State-owned corporation established on September 3, 1975. It is engaged inthe energy sector, including oil and gas and renewable energy. Over the courseof its more than 40 years, PetroVietnam has grown into a fully-integratedbusiness model, ranging from exploration - production, refinery - petrochemical,gas industry, and gas to power/fertiliser and petroleum technical services. Asa leading corporation in the field, the group has a key role to play inaccelerating national economic growth, highly-qualified human resources,international integration, and overseas investment./.
VNA
