Vietsovpetro contributes greatly to Vietnam-Russia ties: Russian diplomat hinh anh 1Oil and gas drilling rigs of Vietsovpetro at Bach Ho field (Photo: VNA)

Hanoi (VNA) – Russian Ambassador to Vietnam Gennady Bezdetko has published an article on the occasion of the Vietnam – Russia oil and gas joint venture Vietsovpetro celebrating its 40th founding anniversary and 35 years since it began oil and gas exploitation, praising the firm's significant contributions to the nations’ comprehensive strategic partnership.

The article emphasised that the establishment of joint actions between Russia and Vietnam in the oil and gas field was one of the glorious pages in the history of their bilateral relations. It affirmed during the past four decades, the joint venture has led Vietnam – Russia cooperation in the energy sector, contributing greatly to strengthening the countries’ economic and trade ties.

In 1988, Vietsovpetro pumped up the first tonnes of crude oil from the basement on the continental shelf in Bach Ho field, which was a milestone for the development of Vietnam’s oil and gas sector.

The Russian diplomat reviewed the joint venture’s key activities in the past time, stating that it has contributed to ensuring Vietnam’s energy security and budget revenue, creating jobs, and promoting the growth of supporting industries and scientific areas.

The article affirmed that in terms of economic efficiency, Vietsovpetro is holding a deserving position not only in the Vietnamese market but also in the world. Over the past 35 years, the firm has exploited more than 240 million tonnes of oil and gas. As of March this year, its revenue from oil and gas sales amounted to 86.7 billion USD, with 52.6 billion USD contributed to the State budget.

Its efficient management and smooth production process have allowed Vietsovpetro to operate sustainably even in the midst of the COVID-19 pandemic. In 2020, its volume of oil extracted stood at 3.4 million tonnes, 9 percent higher than the yearly target. About 1.2 billion cu.m of gas has been brought ashore, reeling in 1.14 billion USD in revenue.

The joint venture with a workforce of about 8,000 now is still among the most important in the Vietnam - Russia coordination and is making great contributions to strengthening their comprehensive strategic partnership, Bezdetko said.

Its achievements are a clear affirmation of meticulous and selfless works by Russian and Vietnamese experts as well as of the friendship and mutually beneficial cooperation between the two nations, concluded the diplomat./.

The Vietnam – Russia oil and gas joint venture Vietsovpetro sets to exploit nearly 3 million tonnes of oil equivalent and condensate in 2021, according to Director General Nguyen Quynh Lam.

The company also aims to contribute 519.4 million USD to the State budget and generate around 157 million USD in profit this year, Lam said.

The firm expects to put the platform BK-18A into operation on October 15, 2021 and BK-19, a month later, he noted, adding that it will also work to improve its capacity as a service provider to offshore wind power projects.

In 2020, the joint venture’s oil and gas output reached 3.42 million tonnes, surpassing the set target by nearly 300,000 tonnes.

It said the oil production target was met one month earlier than the plan, while the natural gas output target was fulfilled 44 days ahead of schedule.

As part of solutions to difficulties posed by the COVID-19 pandemic, the company has made efforts to cut production cost and spending. As a result, it has reduced spending by over 105 million USD, and its production costs decreased by 17 percent compared to the plan.

Oil sales totalled only about 1.11 billion USD last year, or 81.1 percent of the plan. It contributed nearly 745 million USD to the State budget. Its revenue from outside services and other activities amounted over 213 million USD, while after tax profit hit more than 49 million USD./.