The Vietnam Oil and Gas Group (Petrovietnam) is comprehensively implementing a series of solutions to maintain its output of oil and gas in the face of various challenges.

General Director of PetroVietnam Le Manh Hung inspects Sao Vang project. (Photo: VNA)

According to Petrovietnam, since the beginning of the year, there have been many challenges in the supply and demand in the market. Low electricity mobilisation has resulted in low gas production compared to the planned targets.

Most of Vietnam's flagship oil fields are naturally declining, and Petrovietnam’s member companies are unable to make large investments in developing new fields.

As a result, the goal of increasing long-term reserves and meeting planned production targets of units has been adversely impacted.

Additionally, drilling plans have faced difficulties in mobilising offshore drilling rigs and equipment due to a tight market and high rental costs.

Some units are unable to make significant investments due to the impending expiration of oil and gas contracts, which affects their ability to develop fields and expand operational areas.

In compliance with the government's directions and the conclusions of the Petrovietnam Party Committee's Standing Board, General Director Le Manh Hung issued Directive No. 6167/CT-DKVN on September 19 to update the objectives and solutions to ensure the firm’s 2023 management plan, focusing on five solution groups pertaining to improving production and business activities, finance, investment, and value linkage chain.

In a recent meeting, oil and gas operators introduce various solutions related to geological and technical aspects, technology, and management strategies to ensure the maintenance of output in 2023. (Photo: VNA)

To realise the above-mentions solutions, Hung recently held a working session with Petrovietnam’s member units and contractors in charge of managing lots and fields on the Vietnamese continental shelf, to review and discuss measures to ensure the oil and gas production plan in 2023.

In a recent meeting, oil and gas operators such as Vietsovpetro, BIENDONG POC, Idemitsu, PVEP-POC, Cuu Long JOC, Hoan Long - Hoan Vu JOC, JVPC have introduced various solutions related to geological and technical aspects, technology, and management strategies to ensure the maintenance of output in 2023.

They also proposed opportunities to increase production in the future. In addition, they have suggested Petrovietnam provide support to address difficulties related to legal procedures; and urge the Government, ministries, and sectors to review and approve plans for oil field development and expansion of operational areas.

Hung asked Petrovietnam’s subsidiaries to continue maintaining management of volatility and cost, and researching market fluctuation trends to deploy appropriate exploitation activities, especially fully tapping opportunities to increase cash flow and profits.

He demanded units to review and evaluate constraints and risks, and outline effective and suitable plans to address them; and focus on solutions to enhance management efficiency, reduce costs, and apply technical solutions to improve oil recovery factor; and continue efforts to closely follow and speed up investment projects in exploration and exploitation.

Units must continue to effectively implement existing value linkage chains, and enhance collaboration in developing new value chains to maximise existing resources and infrastructure, contributing to realising investment value chains, and increasing revenue and profits.

In the first eight months of 2023, almost all Petrovietnam's production indicators exceeded the set targets by from 3% to 29%. The group’s crude oil output reached 7.06 million tonnes, surpassing the plan by 14.5%./.

Source: en.vietnamplus.vn