Illustrative photo (Photo: VNA)
 
Hanoi (VNA) -  Russia and Vietnam’s oil and gas exploration joint venture Vietsovpetro has exploited five million tonnes of crude oil in 2016.

This generated yearly revenue of more than 1.7 billion USD, a slump of 28 percent year-on-year.

The company contributed over 680 million USD to the State Budget, some 300 million USD less than last year.

The Russian partner posted profit of 121 million USD, while the Vietnam side made profit of nearly 126 million USD, a year-on-year decrease of 71 percent for both sides against last year.

According to Vietsovpetro, the main reason for this year’s decline in production was due to the lower oil price. The average oil price this year stands at 45 USD per barrel, 9 USD less than in 2015. In addition, the oil reserve in existing mines also continues to decline gradually.

In 2016, Vietsopetro pumped ashore some 1.68 billion cu.m. of gas, representing 130 percent of the yearly plan, bringing the total amount of gas shipped ashore, so far, to over 30.9 billion cu.m.-VNA