Hastening the search for new oil and gas fields is a priority of the Vietnam Oil and Gas Group this year to increase reserve. (Photo: pvn.vn)Hanoi (VNS/VNA) –The Vietnam National Oil and Gas Group (PetroVietnam) hopes to add 15 milliontonnes oil to reserves in both 2019 and 2020, heard the company’s conference toimplement exploitation plans held in Vung Tau city on March 14.
PetroVietnam said this was not an easy targetas investments in upstream production in Vietnam had not recovered since oilprices fell to low levels in recent years.
In addition, the exploitation output of oil fields was dropping significantlybecause most were reaching their reserve limits. Thus, it was important tohasten the search for potential oil and gas fields to increase reserves, it said.
The group urged the Law on Petroleum 1993 should be amended to encourageinvestments in upstream business amidst the gradual exhaustion of oil and gasnatural reserves.
Statistics showed that investments in searching for oil and gas reservesannually in 2016-18 were equivalent to a third of the sum in 2011-15.
Experts said it was critical to develop mechanisms to attract investment in oiland gas, especially in upstream production, which plays a significant role inthe country’s marine economic development strategy.
Proper policies toencourage the development of small and marginal oil fields should be developed,PetroVietnam said, adding that putting marginal oil fields into exploitationwas a solution to cope with exhausting oil and gas reserves.
It is important to choose appropriatetechnical solutions and management solutions to be applied at marginal fieldsto enhance their efficiency.
Increasing reserves is the first priority of PetroVietnam in 2019 to ensureproduction output, the group said.
PetroVietnam reported the total exploited oiland gas output at 3.85 million tonnes in the first two months of this year,representing an increase of 7 percent against the company’s target.
It earned revenue of 111.8 trillion VND (4.8billion USD) in January-February.
In 2018, PetroVietnam exploited nearly 24tonnes of oil equivalent and add 12.34 million tonnes of reserves.-VNS/VNA
VNA
