Petrovietnam leads SOEs in terms of profits from overseas projects

Petrovietnam's CEO Le Manh Hung visits the Rusvietpetro oil field. (Photo courtesy of Petrovietnam)

Hanoi (VNA) - Minister of Finance Ho Duc Phoc has recently submitted a comprehensive report to the National Assembly, detailing the oversea investment landscape of state-owned enterprises (SOEs) in 2022.

Ending December 2022, a total of 30 Vietnamese state-owned enterprises, including companies with state capital, invested more than 6.6 billion USD in foreign ventures. The Vietnam Oil and Gas Group (Petrovietnam) led the pack, contributing 4 billion USD, or 60.8% of the total.

On the repatriation front, 72 foreign projects from 16 enterprises brought in over 4 billion USD.  Petrovietnam spearheaded the recoveries, reclaiming 2.9 billion USD, equivalent to 71.1% of the total. This includes profits of 1.1 billion USD, with the remainder from principal, interest and other sources.

Assessing the operational results of foreign investment projects, the Government's report acknowledged while several projects experienced positive revenue shifts, overall profits suffered due to inefficient cost utilisation. Among profitable projects is Petrovietnam's oil exploration project in Block 04, Nhenhexky (Russia), which demonstrated high efficiency, robust revenue, and a substantial capital recovery surpassing the initial investment.

The joint venture Rusvietpetro, formed by Petrovietnam and Zarubezhneft, actively explored 13 oil fields in Block 04, Nhenhexky with estimated reserves stand at 244 million tonnes (geological) and 96 million tonnes (recoverable). Since its inception in 2008, Rusvietpetro has been hailed as one of Petrovietnam's most effective international ventures./.

VNA