Russia oil and gas joint venture Vietsovpetro has reported an oil and condensate output of nearly 3.14 million tonnes in the first 11 months of this year, 9.4% higher than its yearly plan.

This means the firm has fulfilled this year’s goal for oil and condensate output
one month ahead schedule.

Vietsovpetro exploited 72.6 million cu.m of natural gas from Lot 09-1 from January-November, 10.1% higher than the 11-month plan. It completed the yearly goal on November 27, 44 days ahead schedule.

The venture will be likely to surpass its key targets this year. Outputs of oil and natural gas are expected to exceed 3.4 million tonnes, and 77 million cu.m, respectively, 9.4% and 9.6 higher than the plans. Its reserve will also be likely to surpass the plan by 4%.

Since the company suffered a decrease in oil sales in the first 11 months of 2020 due to a substantial fall in the global oil prices caused by impacts of COVID-19, it has worked to accelerate cost-cutting measures with the cost savings exceeding this year’s plan by 50%. Thanks to such efforts, its contributions to the State budget revenue and total profit contributed by both sides surpassed the yearly plan by 3%.

At a meeting with leaders of the Vietnam Oil and Gas Group (PetroVietnam) on December 3, Vietsovpetro proposed its parent company to develop special mechanisms and suitable conditions for it to thrive further.

The path ahead is forecast to be bumpy for Vietsovpetro as a result of the ongoing pandemic, declining petroleum reserves and difficulties in offshore and deep-water exploration, so PetroVietnam Chairman Hoang Quoc Vuong urged the member company to adopt a new strategy for the development of renewable energy, especially offshore wind power.

He also requested Vietsovpetro to restructure and review all possible solutions to operate more effectively in the coming time.