Tue, 12/01/2016, 03:29 GMT+7
Vietsovpetro overfulfills 2015 target
On 29th December 2015, in Vung Tau city, Vietsovpetro held a conference to summarize the business activities of 2015, plans for 2016 and launch the emulation for fulfilling target of 2016.

Attending the conference were Mr. Nguyen Hong Linh, the alternative member of the Central Party Committee, Secretary of the Party Committee and Chairman of the People’s Council of Ba Ria – Vung Tau Province; representatives from the Party Committee, the Board of Directors, Executive Management Board and Trade Union, heads of Divisions and Administration Office of PetroVietnam as well as 500 Vietnamese and Russian managers and employees of Vietsovpetro.


The Conference was chaired by Mr. Tu Thanh Nghia, General Director of Vietsovpetro; Mr. Yakovenko Evgeni Vladimirovich, Deputy General Director of Vietsovpetro; Mr. Nguyen Van Thang, Chairman of Trade Union of Vietnam and Mr. Akhmadeev A.G, Chairman of Russian Trade Union.


vietsovpetro hoan thanh vuot muc cac chi tieu nam 2015

Chairmen of the Conference


At the Conference, General Director Tu Thanh Nghia presented report on the business results of 2015 and key tasks for Vietsovpetro in 2016. It is clearly said in the report that 2015 is a difficult and challenging year to Vietsovpetro in the context of falling oil price. However, by the end of November, Vietsovpetro has completed target of the year regarding such indicators as exploration drilling, increase in oil and gas reserves, gas collection and supply to the land, and construction of marine works.    


Turnover of the year is 2.19 billion USD. 998.4 million USD is contributed to the State Budget. Profits gained by Russia and Vietnam sides are 208.1 million USD and 216.6 USD respectively. Particularly, total expenditure for block 09-1 in 2015 is 339 million USD less than the actual amount in 2014 and 406 million USD less than the budget approved by the 44th Council.


vietsovpetro hoan thanh vuot muc cac chi tieu nam 2015

Mr. Tu Thanh Nghia, General Director of Vietsovpetro presented summary report at the Conference


On 24th December 2015, Vietsovpetro fulfilled the year target for 5.1 million tons of oil ahead of schedule, and the amount is forecasted to be 5.2 million tons by the end of the year, 100 thousand tons higher than the set standard.  In addition to crude oil, Vietsovpetro would supply more than 1.4 billion m3 of gas to the land (equivalent to 123.4% of the target). Since the field was exploited so far, Vietsovpetro has produced more than 218 million tons of oil, supplied over 29 billion m3 of associated gas to the land.   


Vietsovpetro has drilled 5 exploration wells (equivalent to 133,3% of the target) and all had petroleum discoveries. In particular, it has discovered highly produced oil layer to the South of Tho Trang field in Block 09-1 and the first industrial oil flow at Ca Tam Structure of Block 09-3/12.


For the whole year, Vietsovpetro will perform the exploitation drilling of 78.1 thousand meters (equivalent to 100.1% of the target), complete the construction of 26 wells and significant repair of 60 wells. Many new wells have produced considerable amount of oil that facilitate Vietsovpetro’s over-fulfillment of the set target. A new record of 2.258 m/month – machine has been made in the commercial drill speed, equivalent to 105.6% of the plan assigned by the 44th Council of Vietsovpetro.


Regarding capital construction, during the year, Vietsovpetro has completed the construction and commissioned the drilling platform ThTC-2 at Tho Trang field (on 29th September 2015), 1 month and 16 days ahead of schedule; completed the installation of two works under the projects of the Ministry of National Defense.   


Other fields of operation which support the oil and gas exploration and production including scientific research, survey, design, geophysics, marine transport, automobile transport, electric mechanics and warehouse as well as other supporting activities have been synchronously implemented, timely met production demands, contributed to fulfilling Vietsovpetro’s target in 2015.


All the said achievements are attributed to the strict directions of both parties and attempt of Vietsovpetro’s laborers. Vietsovpetro has fulfilled and over-fulfilled the main production targets approved by the 44th Council of Vietsovpetro.


Mr. Tu Thanh Nghia emphasized “I myself and Vietsovpetro leaders would like to express our sincere thanks to the international laborers of Vietsovpetro for understanding and sharing difficulties with Vietsovpetro and PetroVietnam leaders during the past year. With the courage and creativity in work, Vietsovpetro laborers have united and joined hands to overcome a challenging year like 2015 with great success. In the current situation, difficulty is expected to remain in the new year. It is time all the employees in the field of offshore petroleum exploration and production as Vietsovpetro strengthen their team for joint fighting with the spirit of soldiers like previous generations. Looking at the up and down but proud history of Vietsovpetro, I strongly believe that we will overcome these challenges and get continuous successes”.    


vietsovpetro hoan thanh vuot muc cac chi tieu nam 2015

Deputy Chief Engineer, Krupenko Evgeni Vladimirovich launched the emulation for fulfilling the business target of 2016


vietsovpetro hoan thanh vuot muc cac chi tieu nam 2015

Mr. Nguyen Van Thang, Chairman of the Trade Union of Vietnam and Mr. Akhmadeev A.G, Chairman of Russian Trade Union responded to the emulation in 2016


In 2016, Vietsovpetro will continue to confront big challenges. These internal difficulties are getting increasingly serious due to the decrease of main fields in the last stage, the quick increase of floods with unpredicted happenings and the required workload maintained at the high level. At block 09-1, there remains only few exploration wells with high probability of success. The increased reserves and expansion of operation to new blocks have seen the initial achievements but not yet met the expectation to ensure sustainable development. In addition, the issue of balanced production expenses has not been settled in accordance with the current mechanism due to low oil prices. However, Vietsovpetro will try the best to fulfill the business target for 2016 approved by the 45th Council.   


Accordingly, it is planned to produce 5.0 million tons of crude oil with additional 100 thousand tons; collect and supply more than 1.3 billion m3 of gas to the land, including 400 million m3 from block 09-1; carry out exploration drilling of 8.0 thousand meters; production drilling of 85 thousand meters; complete the construction of 23 new wells and signification repair of 9 wells; complete the construction and put two oil platforms into operation, i.e. RC-9 in Rong field and ThTC-3 in Tho Trang field, together with other important projects and plans.    


Regarding financial indicators, with planned oil price of 55 USD/ barrel, the sales are estimated at 2.1 billion USD, contributed amount to the State budget is nearly 950 million USD and the profits from Vietnam and Russia side are 206 million USD and 198 million USD respectively.  


vietsovpetro hoan thanh vuot muc cac chi tieu nam 2015

Mr. Tu Thanh Nghia, General Director of Vietsovpetro and Mr. Vu Nam Cuong, Secretary of the Party Committee

and Deputy General Director of Vietsovpetro awarded certificate of merit to the teams with excellent working performance in 2015


Following the call for emulation in fulfilling 2016 target from Deputy Chief Engineer Krupenko Evgeni Vladimirovich, Mr. Nguyen Van Thang, Chairman of the Trade Union of Vietnam and Mr. Akhmadeev A.G, Chairman of Russian Trade Union responded the emulation and called upon the Vietnam – Russia international laborers to unite and join together to over-fulfill the key business targets for 2016 approved in the 45th Session of Vietsovpetro Council.