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For the first time, the 'reserve offset' factor of PVN has reached 1.19 times since 2016

For the first time, the 'reserve offset' factor of PVN has reached 1.19 times since 2016 - 

Information from the Vietnam Oil and Gas Group (PVN) said: With the drastic implementation of "The package of solutions to cope with the double impact of the Covid-19 pandemic and deeply falling oil prices", in recent 6 months, PVN all activities were ensured safely and for the first time since 2016 the 'reserve offset' factor (between increasing reserves and production) reached 1.19 times - safety level for sustainable development.

According to Mr. Le Manh Hung - General Director of PVN, in the first 6 months of 2020, PVN must carry out production and business targets and tasks in the background of extremely gloomy world economic picture due to being affected heavily from the Covid-19 pandemic and deeply falling oil prices, a series of major economies around the world face the worst recession in decades.

The global oil and gas industry is afflicted, the major oil and gas corporations in the world as Whiting Petroleum, Chesapeake Energy, etc. reduced the turnovers, lost, cut operations, reduced manpower, even went bankrupt.

Being the business that is most directly and severely affected by the effects of the epidemic, in the first 6 months of 2020, with the highest spirit and determination, the Vietnam Oil and Gas industry has focused all resources to implement synchronously and effectively "The package of solutions to cope with the double impact of the Covid-19 pandemic and deeply falling the oil prices”. Thank to that, the production, business and investment activities of PVN continued to be maintained stably and achieved positive results.

Specifically, since the outbreak of Covid-19 up to now, all activities of PVN have been ensured safely; The oil and gas exploration, exploration and exploitation activities have been carried out according to the plan and for the first time (since 2016) the oil and gas reserve compensation coefficient (between the increase in reserves and the exploitation output) reaches 1, 19 times - the safe level for sustainable development.

The cash flow of the Group and its member units have ensured understanding and stable liquidity, taking an important contribution to production and business activities, keeping the rate of development and the investment activities were controlled according to the schedule and the set plan.

According to Le Manh Hung, PVN needs to implement a series of urgent solutions in the near future:

Firstly, the member units of PVN must grasp the forecast of supply and demand market, closely follow the business goals of 2020 and the 6 month results to make the plans for the last 6 months.

Secondly, continuing to keep abreast of market developments, update the supply – demand situation, inventories of crude oil, petroleum products, petroleum, petrochemicals of the world and in the country to identify and make promptly decisions related to the inventory of products in the near future, with the goal of optimizing benefits, compensating losses during the Covid-19 pandemic and oil prices falling from early 2020 to the present.

Thirdly, promoting to implement the plan on search, exploration and appraisal in 2020, ensuring the annual reserve offset factor over one time to ensure development in the coming years.

Organizing to work with contractors to review the status of exploitation of each oil and gas field and block. Implementing synchronously the solutions to ensure the completion of the oil exploitation plan for the 2020 whole year and develop the 2021 plan.

Fourthly, focusing on handling difficulties and obstacles in 5 weak projects according to the policy approved by the Prime Minister in Decision No. 1468 / QD-TTg dated September 29, 2017.

VER.

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