PetroVietnam faces challenges in 2018

The rapid exhaustion of its main oil discoveries is putting the Viet Nam National Oil and Gas Group, better known as PetroVietnam, under great pressure to reach its oil exploration and production targets for 2018. PetroVietnam produced 15.52 million tonnes of oil in 2017, surpassing its set target by 1.3 million tonnes. However, the country’s sole oil exporter has reduced its 2018 production target by one million tonnes, due to concerns over the depletion of natural oil resources. Its general director, Nguyen Vu Truong Son, acknowledged that most of the oilfields have been exploited for many years and are in their final stages, with production declining by 15-30 per cent per year. Bach Ho (White Tiger) field, the country’s largest and longest-producing oilfield, contributing about 60 per cent of the nation’s total oil production for PetroVietnam, is in a state of depletion and can only be explored in 4-5 years. In addition, the rapid flooding, at over 60 per cent, in many fields due to intensive exploitation, such as Hai Su Trang (White Sea Lion), Te Giac Trang (White Rhino), Su Tu Vang (Yellow Lion) and Rang Dong (Dawn), is posing a challenge that may reduce oil production in the coming years, Son said. According to Vietsovpetro’s general director, Tu Thanh Nghia, the largest problem facing the company is the sharp decline in output at its major oilfields, such as at Bach Ho and Rong (Dragon), while new discoveries, such as Gau Trang (White Bear) and Tho Trang (White Rabbit),… [Read full story]


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