Vietsovpetro to complete all goals for 2021 in September hinh anh 1Vietsovpetro's Bach Ho oil field. (Photo: VNA)
Hanoi (VNA) – The Vietnam – Russia oil and gas joint venture Vietsovpetro is likely to complete all of its yearly targets in revenue, profit and State budget payment right in September thanks to comprehensive and effective measures to promote production.

A representative from the firm said that the fourth wave of COVID-19 that broke out in early May has posed adverse impacts on the health of all workers of Vietsovpetro as well as the operations of the firm as well as the entire oil and gas sector.

In order to maintain safe operations amid the pandemic, Vietsovpetro leaders have given drastic and flexible directions on the implementation of solutions to ensure the health of workers and maintain production at the same time.

Particularly, the firm has strengthened measures to cut cost and speed up digital transformation to maximise its performance in all conditions and circumstances.

By giving proper assessments and forecasts of risks, Vietsovpetro has applied measures to adapt to and cope with changes in the economy.

As part of its efforts to implement the programme to cut cost and improve operational efficiency, the firm has saved 11.7 million USD in costs in the first eight months of 2021, equivalent to 124 percent of its yearly target.

Vietsovpetro General Director Nguyen Quynh Lam said that the firm has continued to roll out solutions to optimise the crude oil production process to reduce cost. It has minimised production cost in all stages from platform erection, oil drill operations, oil exploitation and transport, thus saving about 20 million USD during the processes.

Regarding oil and gas exploitation, Vietsovpetro exploited over 2.1 million tonnes of oil equivalent and condensate in the first eight months of this year, exceeding its target for the period by 5.4 percent. Meanwhile, its natural gas output reached 55.8 million cu.m, surpassing the set goal by 8.4 percent. The volume of gas supplied to the shore also reached 605.3 million cu.m.

Its total revenue from oil and gas reached about 1.06 billion USD, 293.3 billion USD higher than its target and up 23.3 percent year on year.

Its budget payment hit 535.5 million USD, exceeding the plan by 154.5 million USD and representing a year-on-year rise of over 27 percent.  Its profit hit 163.7 million USD, 52.9 million USD more than the figure set in the plan and increasing nearly 31 percent over the same period last year.

With the results, Vietsovpetro is likely to complete the targets for the whole year of 2021 in terms of revenue, payment to the state budget and profit in September, three months ahead of schedule.

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

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.

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. 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.

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./.