Adjusting oil and gas output

Chairman of the Board of Directors from PetroVietnam Pham Quang Du is optimistic about the prospects for oil and gas exploitation. PetroVietnam has so far signed 50 contracts with the world’s big oil and gas companies, 27 out of which remain effective with total investment capital for oil and gas exploration and exploitation standing of more than US$7 billion. As a result, over 70 oil and gas fields have been discovered. It is forecast that total oil and gas reserves and exploitation potential at sediment basins will reach about 4.6 billion cubic metres.

After obtaining a high output for a long time, the Vietsovpetro joint venture is currently adjusting its output from the current 13 million tonnes, down to 10.6 million tonnes this year and even down to 9.6 million next year.

PetroVietnam plans to increase its oil and gas exploitation output at some operating oil and gas fields and develop new fields such as Rang Dong, Hong Ngoc (Ruby) and Su Tu Den (Black Lion). New oil fields will be put into operation including Hai Thach, Rong Doi, Rong Doi Tay, and Su Tu Vang. Vietnam is expected to welcome its 200^th million tonnes of oil early next year.

Expanding investment to foreign markets

To maintain a stable output till 2010 and following years, Mr Du said, it is essential for the oil and gas industry to increase its annual reserves inside and outside the country to between 35-40 million cubic metres, equivalent to 30-35 million tonnes of oil. By 2010, the industry must reach an output of between 27-30 million tonnes of oil per year. However, according to calculations, the current reserves are only enough to produce 17-19 million tonnes of crude oil/year till 2012.

Mr Du says that during the past time, PetroVietnam has taken an active role in seeking oil and gas contracts on foreign markets. The corporation has got involved in seven projects, including two in Iraq and Algeria, three in Malaysia and two in Indonesia. PetroVietnam expects to take part in a project in Mongolia.

According to PetroVietnam, the total oil and gas reserves in foreign countries where it has projects are estimated at approximately 120 million cubic metres of oil, of which, the corporation will bring back to the country around 80 million cubic metres of oil. PetroVietnam has set a target for the 2005-2010 period. Accordingly, the corporation will focus on seeking new projects in foreign markets in the hope of signing six or seven oil and gas exploration and exploitation projects. PetroVietnam also plans to increase oil exploration reserves in foreign countries to 35-40 million tonnes in order to have exploration output by the end of next year. The corporation’s oil and gas exploration output is estimated to stand at 1-2 million tonnes by 2010 and to reach 3-4 million tonnes and 5-6 million tonnes by 2015 and after 2020, respectively. PetroVietnam has asked the Government to establish mechanisms and a legal corridor for investment activities abroad so as to boost the corporation’s business operations in the coming time.