The Việt Nam Oil and Gas Group would hasten exploration in 2017 with a focus on major projects such as Cá Rồng Đỏ (Red Emperor) and Cá Voi Xanh (Blue Whale) oil and gas fields. — VNA/VNS Photo

HÀ NỘI – Deputy Prime Minister Trịnh Đình Dũng has asked the Việt 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.

Dũng was speaking at PetroVietnam’s conference reviewing 2016 results and implementing 2017 tasks held in Hà Nội yesterday.

Dũng 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, Dũng said.

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

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

General Director of PetroVietnam, Nguyễn Vũ Trường Sơn, said that the group would hasten exploration in 2017 with a focus on major projects such as Cá Rồng Đỏ (Red Emperor) and Cá 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 VNĐ437.8 trillion (US$19.3 billion), with oil price projected at $50 per barrel.

Sơn 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 VNĐ452.5 trillion and paid VNĐ90.2 trillion to the State budget. After-tax profit stood at VNĐ24.4 trillion.

Petrol price kept unchanged

The retail prices of RON 92 petrol and E5 bio-fuel remained unchanged at VNĐ17,594 and VNĐ17,322  per litre, respectively, as at 3pm yesterday.

In addition, the price of diesel increased by VNĐ200 to VNĐ14,047 per litre. The price for oil increased by VNĐ347 to VNĐ12,600 per litre, while that of mazut increased by VNĐ496 to VNĐ11,623 per litre.

The ministries of industry and trade and finance also decided to increase the use of the petrol price stabilisation fund from zero to VNĐ300 per litre. Accordingly, RON 92 petrol was subsidised by VNĐ503 per litre and E5 bio-fuel was reduced by VNĐ514 per litre. The fund is not used or mazut, diesel and oil.

This is the second time this year that retail petrol prices have been kept stable. The ministry said the move was aimed at supporting increased transport and purchasing demand during the upcoming Tết (Lunar New Year) holiday, thus curbing inflation and stabilising the macro-economy.

Last year, petrol retail prices were adjusted 24 times, increasing 13 times by a total VNĐ6,000 per litre, decreasing nine times by a total of VNĐ4,463 per litre and remaining unchanged twice. Petrol price this year is VNĐ1,000 higher than the beginning of last year.

The finance ministry also said average petrol price in the world market over the past 15 days had slightly increased by $1 to $66.707 per barrel.

Việt Nam National Petroleum Group (Petrolimex) yesterday posted a balance of VNĐ1.79 trillion for its price stabilisation fund, a reduction of VNĐ15 billion from its last announcement on January 4. — VNS