Vietsovpetro works to enhance oil recovery factor

Hanoi (VNA) – The Russia-Vietnam oil and gas joint venture Vietsovpetro is undertaking a series of solutions to increase oil output in the remaining months of the year.

It will focus resources on carrying out geological and technical measures (GTM) and new technologies to raise the oil recovery factor.

The JV will also strive to put into operation key construction projects on schedule, optimize production and costs, and control the flow of capital this year.

Vietsovpetro plans to produce 2.901 million tonnes of oil and condensate, of which 2.8 million tonnes will be pumped from Block 09-1 and the remainder from the JV’s section in Block 09-3/12. It also aims to produce 65.4 million cu.m of natural gas.

At the same time, the company has to ensure the progress of construction of the RC-RB1 and RC-10 rigs of the Dragon oilfield with the aim of putting them into operation in the fourth quarter of this year.

Under the year’s plan, Vietsovpetro will earn 1.31 billion US from the sales of oil and gas at Block 09-1, contribute 679.1 million USD to the State budget while profits of both sides will be 189.9 million USD.

In the first six months of 2022, the joint venture pumped more than 1.571 million tonnes of oil and condensate, surpassing the plan by 84,700 tonnes but equivalent to over 98 percent of the output in the same period last year.

Of the six-month output, natural gas exploitation reached 39.9 million cu.m, surpassing the plan by 5.2 million cu.m and equivalent to 97.7% of the figure in the same period last year. The volume of crude pumped from Block 09-1 surged 12 percent year on year to 160.3 million cu.m, surpassing the six-month plan by 69.6%.

The joint venture earned 1.193 billion USD in oil and gas revenues, up 510.4 million USD from the plan and 441.7 million USD from the same period last year.

The company paid 630 million USD into the State coffer, up 301 million USSD from the plan. Profit of both sides reached 209.8 million USD, which is 110 million USD higher than the target, and 98.1 million USD higher than the figure of the same period in 2021.

Vietsovpetro is working to improve equipment supply efficiency for marine constructions and bolster inspection to prevent wastefulness. Safety measures are also in place together with the application of new technology in a bid to increase oil output and recovery.

Vietsovpetro will build digital transformation plans for the 2022-25, adopt measures on human resources management and arrange in-depth training to build expert contingent.

The venture is setting up a domestic supply chain for the wind power industry to enhance business efficiency as well as create jobs for workers, contributing to Vietnam’s energy transition.

It is planning to seek permission of the Government and relevant agencies to engage in offshore wind power./.