PetroVietnam reports 2 new oil, gas discoveries to prime minister

Vietnamese state energy group PetroVietnam (PVN) on Monday reported its achievements in 2023, including two new oil and gas discoveries, to Prime Minister Pham Minh Chinh.

The group made the discoveries at Block 16-2 within the Ha Ma Vang-1X drilling well and at Block PM3-CAA within the Bunga Lavatera-1 drilling well. 

The discoveries mark the first time in the past five years that PVN has achieved two new discoveries in a single year.

PVN also reported that it had successfully completed construction and commenced operations at four oil and gas projects ahead of schedule. 

Its oil exploitation output in 2023 reached 10.41 million metric tons, surpassing the year’s plan by 12.1 percent, with domestic production alone reaching 8.63 million metric tons, representing a 3.9-percent decrease compared to 2022.

The firm increased oil and gas reserves to 13 million metric tons in 2023, surpassing the year’s targets by 8.3 percent. 

It achieved a gas exploitation output of 7.47 billion cubic meters and an electricity output of 23.07 billion kWh in 2023.

Its fertilizer plants produced 1.76 million metric tons in 2023. 

PVN’s petroleum production, excluding the output from Nghi Son Refinery and Petrochemical LLC (NSRP) in north-central Thanh Hoa Province, reached 7.36 million metric tons, marking the highest record since the Dung Quat Oil Refinery in north-central Quang Ngai Province was put into commercial operation in 2009. 

Revenue from the group’s service units grossed VND94.4 trillion VND (US$3.8 billion).

In general, in 2023, the total revenue of the entire group hit VND942.8 trillion ($38.7 billion), exceeding the year’s plan by 39 percent, logging an increase of VND11.6 trillion ($476.2 million), and equivalent to 9.2 percent of the country’s gross domestic product (GDP). 

PVN contributed VND151.8 trillion ($6.2 billion) to the state coffers, accounting for 9.4 percent of the total state budget revenue. 

It achieved a profit of VND54.5 trillion ($2.2 billion) and saved over VND3 trillion ($123.2 million).

Prime Minister Chinh praised PVN’s accomplishments but cautioned against complacency, emphasizing the need for continued innovation and strategic vision. 

He stressed the importance of investing in research and development (R&D) for renewable energy, digital transformation, and sustainable development. 

The government leader expected the group to implement smart management solutions, closely monitor industry dynamics, and maintain a sound financial structure to ensure the success of key projects such as the Block B – O Mon project in the Mekong Delta city of Can Tho, the Nhon Trach 3 and 4 Power Plants in southern Dong Nai Province, and the Dung Quat Oil Refinery expansion.

He encouraged collaboration with foreign partners to address challenges, enhance operational efficiency at NSRP, recommence the Long Phu 1 thermal power project in the Mekong Delta province of Soc Trang, and explore new projects to innovate products and fortify the oil and gas value chain.

By Bao Anh & Ngoc An – Tuoi Tre News – January 9, 2024