The result led to PVN's consolidated after-tax profit at VND9.8 trillion (US$429.7 million), exceeding 15% of the five-month plan and fulfilling 51% of the year's plan.
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For the first five months, PVN's oil production stood at 6.01 million tons, 2.2% higher than the five-month plan, in which production in May was 1.21 million tons, exceeding 4.5% of the month's plan; gas exploitation also reached 0.88 billion cubic meters, accumulating of 4.43 billion cubic meters in the five months, 3.4% above the five-month plan.
As forecast, the PVN would face numerous challenges in completing the goals set for 2018 as global crude oil prices have fluctuated wildly. The East Sea dispute also affects oil exploration as well as foreign investment.
Meanwhile, the Group's major products are coping with fierce competition from imported ones, while obstacles in related policies and mechanisms have yet to be removed. The reduction in exploitation in major wells in 2018 is also expected, while geopolitical risks are rising, negatively impacting oil production of the whole country, including the PVN.
As the momentum on oil has shifted over the past couple of years, Vietnam's oil revenue may have risen to VND60 billion (US$2.6 billion) in 2017 from VND50 billion (US$2.1 billion) in 2016 and could rise up to VND76 billion (US$3.3 billion) this year and next, assuming oil prices average US$70 per barrel, said a HSBC's report.
PVN expected to focus on increasing oil and gas reserves by 10 - 15 million tons of oil equivalent, at the same time, to facilitate the progress of gas development projects including Block B and Blue Whale, located offshore Danang in central Vietnam.
PVN has set target for oil and gas production in 2018 at 36 million tons, in which gas at 22.83 million tons of oil equivalent, and crude oil of 13.23 million tons.
