Vietsopetro targets higher increase in revenues, profits hinh anh 1Illustrative image (Source: VNA)
Hanoi (VNA) – The Vietnam – Russia oil and gas exploration joint venture Vietsovpetro has set its production targets for 2017.

It aims to fetch 1.9 billion USD in revenues, a year-on-year increase of 11.7 percent, and gross nearly 142 million USD in profits (for Vietnam) and 136 million USD (for Russia), representing a yearly rise of 12.6 percent and 12.3 percent respectively.

The joint venture is expected to contribute 775 million USD to the Vietnamese State budget, up 13.4 percent.

General Director of Vietnam National Oil and Gas Group Nguyen Vu Truong Son said Vietsovpetro will maintain search and exploration activities to fulfill this year’s target of exploiting 5 million tonnes of oil.

To reduce production costs, the venture will seek to optimise technologies and improve financial, risk and business management.

Another task is to train high-qualified engineers and experts to improve competitiveness, he noted.

General Director of Vietsovpetro Tu Thanh Nghia pointed to challenges that Vietsovpetro faced in 2016, including decreasing natural resources in oil fields, the quickly degrading technological system, and lower global oil prices.

However, with the efforts of Vietnamese and Russian businesses, Vietsovpetro overcame these challenges to fulfill and surpass most of its targets, he said.

Last year, Vietsovpetro realised the goal of exploiting 5.04 million tonnes of oil and bringing ashore about 1.68 billion cu.m. of gas (exceeding the yearly target by 30 percent).

Total revenue reached nearly 1.7 billion USD, and State budget collection was estimated at more than 683 million USD.

The Russian side earned profits of 121 million USD, and Vietnam nearly 126 million USD./.