PetroVietnam contributes 20pct to Vietnam’s GDP

Ending the year 2010, Vietnam National Oil and Gas Group (PetroVietnam‐PVN) reported gaining more than 4.8 trillion dong of revenue, equalling $24 billion and accounting for 20 percent of Vietnam’s gross domestic product (GDP).

At the seminar introducing “development opportunities of Vietnam’s oil and gas sector” with the Dutch enterprises organised by the Ministry of Industry and Trade (MoIT) on March 29 morning in Hanoi, Nguyen Thanh Tung, deputy director of Energy

Department under MoIT, said that in the development strategy and scheme of Vietnam’s oil and gas sector from now to 2020, the potential of Vietnam’s oil and gas projects and energy sector is still very large.

This means that the country needs to attract the appropriate investments on technology, especially the technology on oil recovery and exploitation coefficient increase.

According to the report of PetroVietnam‐PVN, in 2010, Vietnam’s crude oil reserve was estimated at 4.4 billion barrels and the oil exploitation output in 2010 was 15.1 million tonnes of crude oil and 9.4 billion cubic metres of gas.

However, the exploitation and exploration activities of gas, especially in the area of south continental shelf, are still under the beginning period. The Vietnam’s gas reserve was about 682 billion cubic metre and the exploration reserve is estimated up to more than 690 billion cubic metre by the end of 2011. Many researches showed Vietnam’s gas reserve may have bigger potential than oil reserve.

According to the plan during 2009‐2015, PetroVietnam will invest $84 billion to improve the oil and gas exploitation operations, petrochemical and oil refinery industry and related services such as drilling and drilling rig, transport service, finance and insurance to serve the oil and gas sector.

Additionally, during 2011‐2015, PetroVietnam will invest in 25 projects of oil and gas exploration and exploitation with a total investment of about $2.35 billion in Russia, former Soviet Union, Venezuela and other Latin American countries, North Africa.

PetroVietnam also plans to increase the oil and gas reserve in foreign countries, to reach 10‐15 million tonnes a year and an exploitation output of 2‐3 million tonnes per year.

Currently, the Vietnam’s Dung Quat oil refinery has started operations for two years with a capacity of 6.5 million tonnes a year, equalling to 48,000 barrels per day and meeting 30 percent of the domestic demand. In the coming time, the Vietnamese government and PetroVietnam also plan to invest in two more oil refineries in Nghi Son (Thanh Hoa province) and Long Son (Ba Ria‐Vung Tau province).

Tags: PetroVietnam