Vietnam might delay purchase of reserve oil

Illustrative image (Source: internet)

Vietnam can only buy 30,000 cubic metres of crude oil out of a planned 150,000 cubic metres for national reserve, said an official from the Ministry of Finance.

Le Van Thoi, Deputy Head of the General Department of State Reserves under the ministry, said at a press conference on September 24 that the country might delay the purchase of the total volume of crude oil needed by one to two years, based on budget calculations.

Crude oil had been one of the goods in the list in the state reserve since 2014 with a volume of 150,000 cubic metres under the Prime Minister's directives, he said.

However, the target was still under consideration to ensure a balance of the State's budget because the State's total budget still had difficulty in 2014 and 2015.

In addition, the general department does not have its own warehouses to store crude oil and still uses those of the Dung Quat Oil Refinery Plant based in Quang Ngai province, according to Thoi.

In other words, there is no place to store 150,000 cubic metres as required.

The ministry has asked the Prime Minister to approve purchase of 30,000 cubic metres of crude initially or delay it by 1 to 2 years.

By purchasing less crude oil for its reserves, the general department could drill for more from the Bach Ho oil field and there would be no need to import it.

Under the national reserve plan, Vietnam would have 3.1 million cubic metres of crude oil in the national reserve warehouses by 2025.-VNA