Despite unfavorable market conditions, and non-conducive financial regulatory framework, PetroVietnam Exploration Production Corporation (PVEP) still strived to overcome difficulties, production in August and the first 8 months of 2017 yielded very positive results, taxable sum for the first 8 months reached 5.644 trillion VND, roughly 81% of the annual target.
In August 2017, while the slight upward improvement of oil prices have helped alleviate pressure, arranging additional financing for survey and exploration, production activities remains a challenge for PVEP. However, with continuous efforts, and comprehensive solutions, in August and during the first 8 months of 2017, PVEP have been able to solve challenging problems, overfill the business targets set by PVN.
PVEP's production in August was 0.4 MBOE, equivalent to 123% of the monthly target. Cumulative production for the first 8 months of 2017 was equivalent to 3.36 MBOE, of which oil and condensate was 2.63 million tonnes; gas production in August 2017 was 78.3 million m3, equivalent to 144% of the monthly target, cumulative production for the first 8 months of 2017 was 731.3 million m3, equivalent to 126% of the monthly target. Production at wells remain stable, higher than planned levels.

In terms of gas sales volumes, August saw 29 oil/condensate shipments, bringing the total for the first 8 months of 2017 to 280 oil/condensate shipments. PVEP's share was 16.9 million barrels, the whole project 45.9 million barrels. PVEP's gas sales equivalent was roughly 478 million m3, the whole project 1.511 trillion m3.
With these production numbers, PVEP's total revenue for the first 8 months was 22.405 trillion VND, post-tax profits 2.301 trillion VND, amounting to 5.644 trillion VND in taxes.
In August 2017, PVEP focused its efforts on finalizing the development of the project to collect Dai Hung well's gas, prioritizing the stable operation of wells to maintain production levels, and review the progress of other wells' development. Work items such as exploration, development undergo strict scrutiny before implementation, adhering to legal investment procedures and PVEP's financial safety bounds. 
In terms of investment, PVEP continued to roll out investment projects for 2017 as approved by PVN. The Corporation's whole portfolio is focused on safe and secure production, avoiding incidents that could interrupt production. Of special note, during the past stormy season, PVEP closely followed weather developments and took precautionary at-sea measures, following guidelines laid down by PVN/PVEP, allowing for absolute safe operation of PVEP and partners.
Aside from these positive results, PVEP continues to face considerable challenges in the face of unresolved challenges related to the financial regulatory framework for companies in the petroleum exploration and production sector. Due to the large financing requirements and high risks involved in exploration activities, PVEP cannot access capital for this type of activity. Or certain non-tax-deductable expenses which should be have created losses for the company. While renegotiation of petroleum service contracts have yielded initial results, progress has not been commensurate to the deep dive of oil prices. As a result, projects, many in their final stage, have not yielded desired economic results. A possible modus operandi would be the not-for-profit operation model currently applied to Song Doc well. 
For the end months of 2017, PVEP will focus on stable operation of wells to ensure completion of the Corporation's annual targets, and continue to optimally review the development of other wells. PVEP will proactively carry out the core tasks in the remaining months, such as: continue to review the financing progress of various petroleum projects; focus on restructuring, reform modes of governance, promote innovations to improve efficiency and monetary flows. 
While forecasts for rise of oil prices for the end of the year are not optimistic, coupled with unapproved special mechanism, PVEP will continue to work with the authorities to report to the Government on the expansion of the scope of usage of funding for exploration to projects overseas, and define a suitable financial mechanism for PVEP to develop the Ca Tam well (Block 09-2/13)…
As a result of the determination of its whole staff, PVEP is working to successfully complete assigned tasks during the end of 2017, strive to fill the quotas set ahead of schedule, helping to realize the PVN's annual business plans.