(VNA) - In the second half of 2022, the Vietnam Oil and Gas Group (PetroVietnam) will continue to keep a close watch on market developments. The goal is to monitor world crude oil prices and market fluctuations to optimize reserves and operate oil production efficiently to stay in the black.
Opportunities brought into full play, helping crude oil exploitation exceed target by 22%
The world’s crude oil price dropped sharply in July and remains on a downward trend. The average price of Brent crude oil in July fell 9% month-on-month. In early August, the price continued to decline and fell to the lowest level since before the Russia-Ukraine conflict.
The average price of petroleum products last month also decreased by 13-22% compared to that in June. In addition, the mobilisation of gas-fueled power is still low compared to the plan, and in the coming months, the demand for gas used in power generation is forecast to decrease due to the rainy season. Priority will be given to mobilising hydroelectricity to power the electrical grid.
Monitoring the oil price frontier has helped PetroVietnam utilise accurate forecasts and execute timely and flexible responses to price adjustments. The group has promoted the effectiveness of resources in the value chain to minimise damage from negative impacts, seizing market opportunities when they arise, and maintaining stable production and business activities to achieve high efficiency.
Crude oil exploitation reached 900,000 tonnes in July, exceeding the plan by 19%. This brings the total figure in the first seven months to 6.38 million tonnes, surpassing the plan by 22% and equal to 73% of the yearly target.
Petroleum and nitrogen production exceeded the plan by 8% and 9%, respectively. Production and supply of gas, electricity and other energy products are all at a high level. This meets the market demand and contributes to stabilising the market and the macro-economy, ensuring national energy security and economic growth. Production and business in these fields both recorded positive results.
With efficient production and business activities, the group's total revenue during January-July 2022 is estimated at 547.7 trillion VND (23.4 billion USD). These numbers are 64% higher than the plan and 56% higher than the figure in the same period of 2021. In the period, PetroVietnam contributed 79.6 trillion VND to the budget, surpassing the plan by 74%, up 47% year-on-year.
Focusing on fluctuation governance in last five months
PetroVietnam General Director Le Manh Hung said difficulties remain in the second half of the year, as the world economy has increasingly shown signs of recession. The group will continue following market and macroeconomic indicators, focusing on fluctuation governance, controlling risks of inflation to moderate oil production at optimal performance.
Accordingly, PetroVietnam and its member units are focusing on increasing reserves to achieve exploitation outputs at the highest level. They are also focused on intensifying solutions to expand the market, especially the market for gas products, oil refinery, fertilizers, and technical services. The group will continue to strengthen linkage chains and promote investment to control risks and take advantage of opportunities to increase scale and implement investment strategies and key projects.
In addition, PetroVietnam continues to carry out long-term scientific research and development projects, creating a steppingstone for the group's products and industries as the traditional field is affected by energy transitions.
The group will also focus on effectively implementing a digital transformation project, building smart factories, and building a big database.
In addition, it will continue to closely coordinate with relevant agencies to draft, appraise and complete the draft Petroleum Law (amended), and adjust legal documents for oil and gas activities to create a legal corridor for the industry to grow in the new context.