PVN adjusted the budget for oil and gas investment in 2020

PVN adjusted the budget for oil and gas investment in 2020 - 

In response to the 'double impact' caused by the Covid-19 epidemic and the sharp decline in oil prices, the Vietnam Oil and Gas Group (PVN) has proactively made the plans to adjust the Program of the action and budget of oil and gas  projects in 2020 corresponding with the oil price scenarios to timely cope with complicated market development.

Facing many difficulties and challenges:

The statistics show that, up to now, for domestic petroleum contracts, PVN is the representative of the host country of 52 contracts and the contractor of 11 contracts, and for foreign petroleum contracts it is the investor of 2 projects and the parent company of 9 projects.

Particularly with Vietsopetro Joint Venture, PVN is managing, monitoring, closely supervising, inspecting and controlling its production and business activities in accordance with the Intergovernmental Agreement signed between Vietnam and Russian Federation in 2010 to ensure operational efficiency and maximum benefits for the two participants.

For domestic projects, external factors had a significant impact on operation of the Exploration and Production (E&P) projects. The complicated situation in the East Sea led to many difficulties as increasing the costs during field deployment and narrowing the oil and gas exploration activities.

At the same time, the complicated development of the Covid-19 pandemic and the fluctuation in world oil prices have not shown signs of stable recovery.

The difficulties caused by mechanisms and inconsistencies in the current legal documents were gradually overcome but not greatly changed have significantly affected the oil and gas activities of contractors on the Vietnamese continental shelf.

Proactively overcome the "double" crisis:

With the identified difficulties, PVN has recognized the heavy task, so it promptly and timely tried the best to perform its role well.

Regarding coping with the “double” impact as Covid-19 pandemic and deeply falling oil prices, PVN actively worked with contractors/executives for proposing the adjusted plans of the oil and gas projects in 2020 correlative oil prices scenarios with a total reduce budget and optimal payment in 2020 of about USD 240 million.

Nguồn PVN.

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