Illustrative image. (Source: VNA) Hanoi (VNA) – Since the Vietnamese Government and Italian contractorAGIP signed the first production sharing contract in 1978, foreign directinvestment (FDI) in the oil and gas sector has not only brought large revenueto the country but also laid important foundations for the sector to developstrongly.
With the promulgation of the Law on Foreign Investment and the Law on Oil andGas, FDI in the field, especially exploration and exploitation activities, has grownremarkably.
From the launch of the door-opening policy in 1986 through to November 30,2015, Vietnam had signed 105 oil and gas exploration and production contractswith foreign partners, 39 of which have now expired.
According to the Vietnam National Oil and Gas Group (PetroVietnam), over thepast 30 years, foreign contractors have invested 45 billion USD in oil and gasexploration and exploitation activities in Vietnam.
At present, more than 40 foreign oil and gas companies are investing in Vietnam.Among those are US-based Chevron and ExxonMobil, the Republic of Korea-based KNOC,Russia’s Gazprom, Malaysia’s Petronas, Thailand-based PTTEP, Spain’s Talismanand Repsol, as well as France-based Total and Neon Energy of France. Theirinvestments have been made in the form of capital contribution to Vietnamesefirms.
In addition, Vietnam has also inked cooperation deals with Russia to set upjoint venture companies tasked with exploring oil and gas in the two countries.
With these cooperation activities, 38 out of the over 100 detected oil fieldshave been tapped.
During the period, Vietnam increased its annual oil and gas reserves to about35-40 million tonnes of oil equivalent, with an average output of 15.5-17million tonnes of oil and more than 9 billion cu.m of gas per year. In theperiod before 2015, the oil and gas sector annually contributed 20-25 percent ofthe total State budget and 18-25 percent of the national GDP.
Thanks to cooperation with foreign contractors, PetroVietnam has accessed andreceived modern technology transfers, acquired advanced management methods, andquickly integrated into the international oil and gas community.
More specifically, the Vietnam-Russia Oil and Gas joint venture company(Vietsovpetro) – a model of investment cooperation – has discovered and effectivelyexploited oil deposits in the basement of Bach Ho (White Tiger) and other oilfields in Vietnam.
The Vietnamese oil and gas sector has formed a group of technological solutionsto tapping new forms of oil deposit that are unprecedented in global oil andgas history.
With this group of technological solutions, the natural energy of the oildeposit has been used thoroughly, with the highest oil recovery coefficient andthe lowest oil field development cost, bringing in 88 billion USD from thiskind of oil to the country.
According to the Vietnam Oil and Gas Association, cooperation with foreigncontractors in oil and gas searching, exploration, and production hascontributed to the birth of a series of major works in the field such as gasprocessing plants, gas-fueled thermoelectricity plants, and fertiliserfactories serving the country’s economic development, modernisation, andindustrialisation.
The sector has put into operation three key complexes for national projects,namely the Ca Mau Gas-Electricity-Fertiliser, the Southeast RegionGas-Electricity-Fertiliser, and the Dung Quat Oil Refinery.
The complexes are now operating effectively, contributing to ensuring nationalenergy and food security, creating jobs for local labourers, and spurringsocio-economic development of localities where they are based.
In addition, oil and gas technical services supply chains serving explorationand exploitation activities have developed strongly.
Many PetroVietnam member units like PetroVietnam Technical Services Corporation(PTSC), PetroVietnam Drilling and Well Services Corporation (PV Drilling), PetroVietnamExploration and Production Corporation (PVEP) and PetroVietnam Engineering (PVE)are providing oil and gas technical services for not only domestic partners,but also regional and international contractors.
Annually, oil and gas technical services contribute nearly 30 percent ofPetroVietnam’s total revenue and make up 10 percent of the group’s contributionto the State budget.
After 30 years of attracting FDI to the oil and gas sector, especially theprocess of oil and gas exploration and production with foreign contractors,PetroVietnam has now become a strong national oil and gas group that is able toengage in all oil and gas activities at home and abroad, as well as makingstrides alongside other national oil and gas groups in the region.-VNA
With the promulgation of the Law on Foreign Investment and the Law on Oil andGas, FDI in the field, especially exploration and exploitation activities, has grownremarkably.
From the launch of the door-opening policy in 1986 through to November 30,2015, Vietnam had signed 105 oil and gas exploration and production contractswith foreign partners, 39 of which have now expired.
According to the Vietnam National Oil and Gas Group (PetroVietnam), over thepast 30 years, foreign contractors have invested 45 billion USD in oil and gasexploration and exploitation activities in Vietnam.
At present, more than 40 foreign oil and gas companies are investing in Vietnam.Among those are US-based Chevron and ExxonMobil, the Republic of Korea-based KNOC,Russia’s Gazprom, Malaysia’s Petronas, Thailand-based PTTEP, Spain’s Talismanand Repsol, as well as France-based Total and Neon Energy of France. Theirinvestments have been made in the form of capital contribution to Vietnamesefirms.
In addition, Vietnam has also inked cooperation deals with Russia to set upjoint venture companies tasked with exploring oil and gas in the two countries.
With these cooperation activities, 38 out of the over 100 detected oil fieldshave been tapped.
During the period, Vietnam increased its annual oil and gas reserves to about35-40 million tonnes of oil equivalent, with an average output of 15.5-17million tonnes of oil and more than 9 billion cu.m of gas per year. In theperiod before 2015, the oil and gas sector annually contributed 20-25 percent ofthe total State budget and 18-25 percent of the national GDP.
Thanks to cooperation with foreign contractors, PetroVietnam has accessed andreceived modern technology transfers, acquired advanced management methods, andquickly integrated into the international oil and gas community.
More specifically, the Vietnam-Russia Oil and Gas joint venture company(Vietsovpetro) – a model of investment cooperation – has discovered and effectivelyexploited oil deposits in the basement of Bach Ho (White Tiger) and other oilfields in Vietnam.
The Vietnamese oil and gas sector has formed a group of technological solutionsto tapping new forms of oil deposit that are unprecedented in global oil andgas history.
With this group of technological solutions, the natural energy of the oildeposit has been used thoroughly, with the highest oil recovery coefficient andthe lowest oil field development cost, bringing in 88 billion USD from thiskind of oil to the country.
According to the Vietnam Oil and Gas Association, cooperation with foreigncontractors in oil and gas searching, exploration, and production hascontributed to the birth of a series of major works in the field such as gasprocessing plants, gas-fueled thermoelectricity plants, and fertiliserfactories serving the country’s economic development, modernisation, andindustrialisation.
The sector has put into operation three key complexes for national projects,namely the Ca Mau Gas-Electricity-Fertiliser, the Southeast RegionGas-Electricity-Fertiliser, and the Dung Quat Oil Refinery.
The complexes are now operating effectively, contributing to ensuring nationalenergy and food security, creating jobs for local labourers, and spurringsocio-economic development of localities where they are based.
In addition, oil and gas technical services supply chains serving explorationand exploitation activities have developed strongly.
Many PetroVietnam member units like PetroVietnam Technical Services Corporation(PTSC), PetroVietnam Drilling and Well Services Corporation (PV Drilling), PetroVietnamExploration and Production Corporation (PVEP) and PetroVietnam Engineering (PVE)are providing oil and gas technical services for not only domestic partners,but also regional and international contractors.
Annually, oil and gas technical services contribute nearly 30 percent ofPetroVietnam’s total revenue and make up 10 percent of the group’s contributionto the State budget.
After 30 years of attracting FDI to the oil and gas sector, especially theprocess of oil and gas exploration and production with foreign contractors,PetroVietnam has now become a strong national oil and gas group that is able toengage in all oil and gas activities at home and abroad, as well as makingstrides alongside other national oil and gas groups in the region.-VNA
VNA
