The Vietnam National Oil and Gas Group (PetroVietnam) has said that itwill continue monitoring global oil prices closely in order to adjustoil exploration and production, ensuring national energy security aswell as the group's economic benefits.
At a meeting in Hanoi onDecember 30, PetroVietnam Chairman Pham Xuan Son said the whole economyis benefiting from declining oil prices. While revenue from oil exportscan shrink, profits will increase in other sectors.
"It's not good to see the oil price plunging too low, but at 60-70 USD per barrel, it's not a big deal," Son said.
However,he added that if global oil prices fall below 60 per USD barrel,PetroVietnam will consider stopping production at the oil fields whereproduction cost exceeded sales price.
The average production costat most PetroVietnam oil fields is around 30-37 USD per barrel,according to Son. At four oil fields, production cost is more than 60per barrel USD but the production capacity there is small, only around450,000 tonnes in 2015.
PetroVietnam produced 17.39 milliontonnes of oil in 2014, an increase of 7.3 percent over the group'syearly target, while gas production for the first time hit 10.2 billioncubic metres, 7.4 percent over the target. Oil and gas reserves alsosurpassed the goal by 37.5 percent this year to reach 48.11 milliontonnes of oil equivalent.
The group discovered nine new oil and gas places and began exploration at eight.
PetroVietnamDeputy General Director Le Minh Hong said the group met all businesstargets ahead of schedule despite the difficult domestic and globaleconomic environment.
The whole group, including affiliates andsubsidiaries, saw revenue of 745.5 trillion VND (34.8 billion USD),exceeding the target by 11.8 percent. Revenue of the group itself was370 trillion VND (17.3 billion USD). Total profit was 46 trillion VND(2.1 billion USD). The group contributed 178.1 trillion VND (8.3 billionUSD) to the State Budget.
Production of electricity, fertiliserand petroleum exceeded targets by 5-23 percent. Electricity productionreached 16.48 billion kWh, a rise of 5 percent over the plan. Fertiliserproduction hit 1.64 million tonnes, up 7.7 percent, and petrolproduction reached 5.71 million tonnes, up 23.2 percent.
In 2015,PetroVietnam aims to produce 26.6 million tonnes of oil equivalent,including 16.8 million tonnes of oil and 9.8 billion cubic metres ofgas.
The electricity output target is set at 18.50 billion kWh,fertiliser production at 1.525 million tonnes and petrol production at5.55 million tonnes.
The group also prepared revenue scenariosdepending on global oil prices ranging from 515.1 trillion VND (24billion USD) at the oil price of 60 USD per barrel to 718.4 trillion VND(33.6 billion USD) at the oil price of 100 USD per barrel.
Onthe issue of investment overseas, Son said overseas investment is along-term strategy and should not be affected by short-term oil pricefluctuations. However, the group will strengthen risk management forexisting projects while seeking opportunities to buy oil fields overseasat cheap prices.-VNA
At a meeting in Hanoi onDecember 30, PetroVietnam Chairman Pham Xuan Son said the whole economyis benefiting from declining oil prices. While revenue from oil exportscan shrink, profits will increase in other sectors.
"It's not good to see the oil price plunging too low, but at 60-70 USD per barrel, it's not a big deal," Son said.
However,he added that if global oil prices fall below 60 per USD barrel,PetroVietnam will consider stopping production at the oil fields whereproduction cost exceeded sales price.
The average production costat most PetroVietnam oil fields is around 30-37 USD per barrel,according to Son. At four oil fields, production cost is more than 60per barrel USD but the production capacity there is small, only around450,000 tonnes in 2015.
PetroVietnam produced 17.39 milliontonnes of oil in 2014, an increase of 7.3 percent over the group'syearly target, while gas production for the first time hit 10.2 billioncubic metres, 7.4 percent over the target. Oil and gas reserves alsosurpassed the goal by 37.5 percent this year to reach 48.11 milliontonnes of oil equivalent.
The group discovered nine new oil and gas places and began exploration at eight.
PetroVietnamDeputy General Director Le Minh Hong said the group met all businesstargets ahead of schedule despite the difficult domestic and globaleconomic environment.
The whole group, including affiliates andsubsidiaries, saw revenue of 745.5 trillion VND (34.8 billion USD),exceeding the target by 11.8 percent. Revenue of the group itself was370 trillion VND (17.3 billion USD). Total profit was 46 trillion VND(2.1 billion USD). The group contributed 178.1 trillion VND (8.3 billionUSD) to the State Budget.
Production of electricity, fertiliserand petroleum exceeded targets by 5-23 percent. Electricity productionreached 16.48 billion kWh, a rise of 5 percent over the plan. Fertiliserproduction hit 1.64 million tonnes, up 7.7 percent, and petrolproduction reached 5.71 million tonnes, up 23.2 percent.
In 2015,PetroVietnam aims to produce 26.6 million tonnes of oil equivalent,including 16.8 million tonnes of oil and 9.8 billion cubic metres ofgas.
The electricity output target is set at 18.50 billion kWh,fertiliser production at 1.525 million tonnes and petrol production at5.55 million tonnes.
The group also prepared revenue scenariosdepending on global oil prices ranging from 515.1 trillion VND (24billion USD) at the oil price of 60 USD per barrel to 718.4 trillion VND(33.6 billion USD) at the oil price of 100 USD per barrel.
Onthe issue of investment overseas, Son said overseas investment is along-term strategy and should not be affected by short-term oil pricefluctuations. However, the group will strengthen risk management forexisting projects while seeking opportunities to buy oil fields overseasat cheap prices.-VNA
