Deputy Prime Minister Trinh Dinh Dung has asked the Viet Nam Oil and Gas Group (PetroVietnam) to tackle loss-making projects to improve operation efficiency, while keeping a close watch on global oil prices in order to develop appropriate solutions to fulfil 2017 targets.

Dung was speaking at PetroVietnam’s conference reviewing 2016 results and implementing 2017 tasks held in Ha Noi yesterday.

Dung urged PetroVietnam to hasten its restructuring programme and continue efforts of becoming the backbone of the country’s oil and gas industry with strong financial capacity, technology and competitiveness not only at home but in international markets.

As crude oil prices are forecast to maintain low levels in 2017, significantly impacting the group’s operations, PVN should focus resources on fulfilling goals set for 2017, with oil exploration and exploitation being the core business, Dung said.

“Inefficient and stagnant projects must be handled thoroughly,” Dung said.

In addition, the quality of investment projects must be enhanced from the process of planning, exploration, implementation and operation, Dung said, adding that special attention must be attached to the environmental production.

General Director of PetroVietnam, Nguyen Vu Truong Son, said that the group would hasten exploration in 2017 with a focus on major projects such as Ca Rong Do (Red Emperor) and Ca Voi Xanh (Blue Whale) oil and gas fields.

The group would also speed up the implementation of projects which were scheduled to become operational this year.

The group targets production of 14.2 million tonnes of crude oil, 9.61 billion cubic metres of gas, 20.1 billion Kwh, 1.5 million tonnes of fertilisers and 6.8 million tonnes of petrol this year, with total revenue of VND437.8 trillion (US$19.3 billion), with oil price projected at $50 per barrel.

Son said at the conference that the group completed its goals in 2016. The oil and gas reserve expanded to 16.66 million tonnes with three new mines.

The group earned a total revenue of VND452.5 trillion and paid VND90.2 trillion to the State budget. After-tax profit stood at VND24.4 trillion. — VNS