Petrovietnam tops state enterprises, recoups $2.9b from overseas

Sunday, Oct 08, 2023 13:28

Petrovietnam's CEO Lê Mạnh Hùng visits the Rusvietpetro oil field. — Photo courtesy of Petrovietnam

Finance Minister Hồ Đức Phớc recently delivered a comprehensive report to the National Assembly, detailing the oversea investment landscape of state-owned enterprises during 2022.

Ending December, 2022, a total of 30 Vietnamese state-owned enterprises, including companies with state capital, invested more than US$6.6 billion in foreign ventures. Vietnam National Oil and Gas Group (Petrovietnam) led the pack, contributing $4 billion (60.8 per cent of total).

On the repatriation front, 72 foreign projects from 16 enterprises brought in over $4 billion. Petrovietnam spearheaded the recoveries, reclaiming $2.9 billion (71.1 per cent of total). This includes profits of $1.1 billion, with the remainder from principal, interest and other sources.

Assessing the operational results of foreign investment projects, the Government's report acknowledged while several projects experienced positive revenue shifts, overall profits suffered due to inefficient cost utilisation. Among profitable projects is Petrovietnam's oil exploration project in Block 04, Nhenhexky (Russia), which demonstrated high efficiency, robust revenue, and a substantial capital recovery surpassing the initial investment.

The joint venture Rusvietpetro, formed by Petrovietnam and Zarubezhneft, actively explored 13 oil fields in Block 04, Nhenhexky with estimated reserves stand at 244 million tonnes (geological) and 96 million tonnes (recoverable). Since its inception in 2008, Rusvietpetro has been hailed as one of Petrovietnam's most effective international ventures. — VNS

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