PVEP stops to exploit 9 drilling wells due to oil prices drop

PVEP stops to exploit 9 drilling wells due to oil prices drop - 

Due to the oil prices continuous drop recently, PetroVietnam Exploration and Production Corporation (PVEP) has actively reviewed and adjusted the exploiting projects for according with the actual situation.

General Director of PVEP reports PVN’s Leaders on the situation of implementing production and business plans.

PVN leaders has a working meeting with PVEP on implementing and building PVEP’s production and business plans in 2015 and 2016-2020 period.

At the meeting Mr. Do Van Khanh – General Director of PVEP informed the plans of the Corporation in 2015 as reserve increase of 18-23 million ton of equivalent oil, exploitation of 5.86 million ton of equivalent oil, of which 4.71 million ton of oil, 1.15 billion cubic meters of gas and expectation to put into operation 3 new mines and sign 1 or 2 new contracts;

Due to the oil prices drop, PVEP has adjusted to stop exploiting 6 domestic and 3 overseas drilling, by this way, the reserve increase and investment will decrease respectively 7% and $ 480 million, equivalent to 29% in comparison with the plan. And as a result, the management and business costs (OPEX) of the Corporation also will drop 13%.

With the expected plan of search and exploration for over 7,000 km and over 600 km2 by 2D and 3D explosive withdrawing methods respectively, and drilling 32 wells (27 domestic and 5 overseas wells), the reserve increase estimates to reach 14 million ton of oil.

PVN leaders required the functional departments of the Group promptly to give out the concrete plans for supporting PVEP to resolve shortcomings and problems, build appropriate plans for 2015 and ensure the development targets for five years 2016 – 2020 period.

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