PVEP and the path to becoming leading international oil and gas firm

Hanoi (VNA) – The Petrovietnam Exploration Production Corporation (PVEP), a subsidiary company of the Vietnam Oil and Gas Group (Petrovietnam), has grown into a leading international oil and gas firm, according to Dr. Nguyen Quoc Lap, Vice President of the Vietnam Petroleum Association and former General Director of PVEP.

Dr. Lap highlighted the development of PVEP since it was established in 2007 with the merging of Petroleum Investment and Development Company (PIDC) and PVEP Exploration and Production Company (PVEP HCM City).

He also reviewed steps made by the firm over the years from oil and gas exploration and exploitation contracts abroad, in Malaysia, Indonesia, Thailand, Algeria, Venezuela and Peru.

In order to achieve successes, it has been necessary to count on policies designed by the Party, State, Government and Petrovietnam in expanding Vietnam’s investment abroad.

PVEP’s successes in Algeria and Russia has also helped build the firm’s reputation, he said. Thanks to overseas investment projects, PVEP has a team of integrated, professional and skilled experts and managers.

However, PVEP has also been involved in a number of unsuccessful projects, forcing it to withdraw, including in Cuba, he noted, stressing that lessons drawn from these projects will help the firm to adopt more stable development strategies.

PVEP was established with the expectation of becoming a key player in oil and gas exploration and production both at home and abroad.

After many successes over the past 15 years, PVEP has been highlighting bottlenecks that need to be removed in order to improve production and business efficiency, including operational and financial regulations; de-centralisation and the delegation of power, and venture investment, Dr. Lap pointed out.

As of the end of August, PVEP had sold 830 million cu.m of gas this year, fulfilling its yearly goal 123 days ahead of schedule.

The firm also accomplished all output targets assigned by its parent company Petrovietnam for the first eight months of this year.

It pumped 2.52 million tonnes of oil equivalent during the period, 19% higher than the eight-month goal and representing 79% of the yearly plan.

Its oil and condensate output reached 1.69 million tonnes, exceeding the plan by 7% and equivalent to 72% of this year’s target. Gas output surpassed the eight-month plan by 50% to hit 834 million tonnes, reaching the company’s full target for the entire year.

In 2022, PVEP has been tasked to produce 3.18 million tonnes of oil equivalent.

In the first five months of 2022, PVEP contributed over 7.99 trillion VND (over 344,66 million USD) to the State budget, surpassing the target by 92%.

The firm has also implemented measures to improve oil recovery coefficient and optimise the exploitation of wells, and increase the exploitation of potential wells./.