State-run energy giant Vietnam National Oil and Gas Group (PVN) has said its revenue reached VND499.5 trillion (US$21.48 billion) in the first ten months of 2018, 21.1% higher than the ten-month target and up 23.6% year-on-year.
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For the January – October period, PVN's oil production stood at 11.71 million tons, 5.5% higher than the ten-month plan and equivalent to 88.5% of the year’s plan. Oil production in October was 1.15 million tons, exceeding 7.2% of the month's plan; gas exploitation also reached 0.78 billion cubic meters, putting the ten-month accumulative gas output at 8.39 billion cubic meters, 4.1% above the ten-month plan and equivalent to 87.4% of the year’s plan.
The group also produced one million tons of petroleum products in October, up 2% compared to the month’s plan, resulting in a total of 7.46 million tons in the January – October period, equivalent to 84.2% of the ten-month plan.
A higher oil price in the world market in October was one of the key reasons for PVN to exceed its respective financial goals, stated the group.
Nevertheless, PVN is predicted to 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 facing with fierce competition from imported ones, while obstacles in related policies and mechanisms have yet to be removed. The exploitation reduction in major wells in 2018 has also been 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 the next, assuming average oil price remain at US$70 per barrel, said a HSBC's report.
PVN expected to focus on increasing oil and gas storage 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.
