PetroVietnam Restructured into Economic Group

Vietnamese Prime Minister Nguyen Tan Dung yesterday released a decision allowing Vietnam Oil and Gas Corp (PetroVietnam) to transform into an economic group under the new name of Vietnam National Oil and Gas Group.

 

Attending the founding ceremony, the Prime Minister urged the group to carry out exploration, exploitation and processing strategies in addition to distribution of oil and gas products and services across the country and abroad in 2007.

 

The group should continue expanding oil and gas exploitation and speeding up oil refinery projects, especially Dung Quat oil refinery underway in central Quang Ngai province, he continued.

 

Dung advised the group to upgrade its mechanism to operate more efficiently during the transitional period of Vietnam’s economy, adding that it should also speed up the equitisation process to attract investment.

 

The group should renew its management and improve staff capacities to speed up the implementation of projects, particularly key projects on oil and gas. In 2007, the new PetroVietnam plans to produce 17.5 million tons of crude oil, 7.3 billion cubic meters of gas, and manufacture 680,000 tons of fertilizer. The group also plans to supply enough gas to fuel electricity projects and public consumption.

 

Speaking at the ceremony, PetroVietnam chairman Dinh La Thang said the group has exploited more than 205 million tons of crude oil and 30 billion cubic meters of gas, earning $40 billion revenues and paying $25 billion to State coffers.

 

In 2006 alone, PetroVietnam posted total revenues of over US$11 billion and paid US$5 billion to the State Budget. The group has signed 57 contracts valued US$7 billion with foreign partners to explore and exploit oil and gas in Vietnam, with 35 operational ones. The firm is also striking oil and gas reserves in other countries like Algeria and Malaysia and has brought home oil from its Malaysian stakes.

 

(People’s Army, Pioneer)