3:26:37 PM | 7/8/2005
Vietsovpetro, a Vietnam-Russia oil and gas joint venture, has set a target to pump 10.5 million metric tons of crude oil this year, earmarking 150 million tons of crude after 25 years of operation.
The joint venture company also targets to bring ashore 1.35 billion cubic meters of associated gas from the Bach Ho field during 2005.
Vietsovpetro will explore oil in six new wells and expects to be able to tap oil in 13 wells by the end of this year.
According to a close source, Vietsovpetro will invest more than US$600 million in exploring new crude oil and gas fields this year.
In 2004, Vietsovpetro exploited 12.25 million tons of crude oil and 2.1 billion cubic meters of associated gas, generating total revenues of US$3.5 billion in 2004. It paid US$2.35 billion to the State Treasury.
The joint venture is now seeking government approval to retain 25 per cent of total crude oil revenues in 2005 for investment projects. The retained sum, however, will not exceed US$500 million.
Vietsovpetro was established in 1981 by the state-owned Russian firm, Zarubezhneft, and the Vietnamese state-run company PetroVietnam.
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