Oil and gas enterprises "upstream" to overcome double crisis

VCN - In 2020, the double crisis of the Covid-19 pandemic and the deep fall in oil prices has seriously affected production and business activities of oil and gas enterprises. However, thanks to the recovery of the economy, the business results of these enterprises are still very impressive.
Regulations on controlling number of key traders of petrol and oil trading must be issued Regulations on controlling number of key traders of petrol and oil trading must be issued
General Department of Vietnam Customs responds on HS code of Oil Omega-3,6,9 of Polvita Company General Department of Vietnam Customs responds on HS code of Oil Omega-3,6,9 of Polvita Company
Jurisdiction to impose penalties of customs agency in the field of oil, petroleum and gas clarified Jurisdiction to impose penalties of customs agency in the field of oil, petroleum and gas clarified
1232-1336-5-3526-nguoi-lao-dong-vietsovpetro-tren-gian-tam-dao-01
Oil and gas enterprises still seek solutions to achieve positive business results. Photo: Petrovietnam

Efforts to move "upstream"

According to oil and gas enterprises, 2020 was a particularly difficult year for both coping with the pandemic and unprecedented fall in crude oil price in the history of oil and gas trading to a record low in the last 20 years.

For the first time in world’s oil and gas history, on April 20, 2020, WTI oil price dropped to minus US$37.6 per barrel. On average, in the first eleven months of 2020, the oil price reached US$43.8 per barrel, much lower than the expected price of US$60 per barrel.

Therefore, on the world market, by the end of the third quarter of 2020, large oil corporations such as Shell, BP and Chevron all recorded losses of up to tens of billions of US dollars.

In Vietnam, the impact of the Covid-19 pandemic is less serious than other countries, but the low oil price also causes difficulties for many enterprises. However, thanks to the effort to move "upstream", the business results of oil and gas enterprises are more positive.

The leaders of Vietnam Oil and Gas Group (Petrovietnam) said that, for the first eleven months of 2020, the targets on crude oil extraction, fertilizer production, and petrol and oil have basically been completed and exceeded the plan. Accumulated revenue of the Group in in the eleven months was estimated at VND508.9 trillion, with the amount contributed to the State budget of about VND66 trillion.

Petrovietnam's oil and gas extraction has been optimized at a level suitable to technical conditions; minimized and maintained operating costs, leading to the Group's crude oil production to reach the target 25 days in advance (reaching 10.62 million tons on December 5, 2020). It is expected that for the whole year, the domestic oil output will reach 9.65 million tons, exceeding 9.25%; foreign oil output 1.82 million tons, exceeding 1.31%; total domestic and foreign crude oil output is estimated at 11.47 million tons, exceeding 7.9%.

For Petrovietnam's member companies, their business results are also very positive. According to Petrovietnam's report, in November 2020, 17 member companies recorded profits and at the end of November 2020, 10 member companies exceeded the profit targets, reaching from 105% to 935% of the yearly plan.

For example, Russia-Vietnam Joint Venture (Vietsopetro) has proactively and actively implemented synchronous solutions in all areas of production and business activities. At the end of November 2020, Vietsovpetro basically completed the assigned targets and tasks of the extraction and production plan. It is expected that by the end of 2020, Viesovpetro will exceed the main production targets, such as: extracted oil output will be 3,420.900 tons (reaching 109.4% of the plan); natural gas 77.2 million m3 (109.6% of the plan); supplying more than 1.2 billion m3 of gas, of which from Lot 09-1 will reach nearly 228 million mЗ (151.4% of the plan). The total remittance to the state budget and the profit between Vietnam and Russia in 2020 is expected to be over US$ 860 million (reaching more than 103% of the plan), of which the profit of both sides is estimated at US$247 million (123% of the plan).

What are the expectations for 2021?

By the end of 2020, the potential for Covid-19 vaccines has stimulated oil prices by more than 10%. Experts say that the global economy will soon return to a new normal state, helping demand for oil recover in 2021.

According to General Director of Petrovietnam Le Manh Hung, 2021 is forecast to remain a difficult year for the world oil and gas market. Therefore, to continue to obtain such achievements as in 2020, the leaders of Petrovietnam have instructed its units together with the group to focus on forecasting market, economic and political issues in 2021 to propose responses and appropriate governance directions; carefully analysing and evaluating solutions to avoid and limit the decline, and seeking solutions to restore growth; and analysing investment and controlling the investment portfolio; and focusing on immediately carrying out the tasks in the project on response to energy shifting.

In fact, despite the double crisis, Vietnam's oil and gas market is still very attractive, especially to foreign investors. Vietnam's oil and gas industry is receiving many "huge" energy projects, with the expectation of leading to growth in demand for petrol, oil and gas products.

An enterprise made fraudulent C/O to avoid more than VND300 million of tax An enterprise made fraudulent C/O to avoid more than VND300 million of tax

VCN – An enterprise which made a fraudulent C/O to import five containers of crude palm oil ...

Typically, Chan May LNG Joint Stock Company (an enterprise with 60% of capital invested by the US) proposed to invest in a US$6 billion LNG gas power project; AES Group (USA) and Vietnam Gas Joint Stock Corporation (PetroVietnam Gas) signed an agreement on Son My LNG import port warehouse project with total investment of US$1.4 billion; and T&T Group proposed to build US$3.5 billion LNG-fired power plant in Vung Ang (Ha Tinh).

By Binh Nam/ Huyen Trang

Related News

Outlook for lending rates in 2025?

Outlook for lending rates in 2025?

VCN - The economy is forecast to continue to recover strongly from the end of 2024 to 2025, helping credit demand increase rapidly, but lending interest rates may also be under increasing pressure.
Industrial production maintains rapid and throughout bounceback

Industrial production maintains rapid and throughout bounceback

VCN - The industrial production index in 11 months continued to recover rapidly and increase steadily in 60/63 provinces and cities, which is a good signal for the economy.
Ho Chi Minh City achieves record state revenue of over VND500 trillion in 2024

Ho Chi Minh City achieves record state revenue of over VND500 trillion in 2024

VCN - For the first time in its history, Ho Chi Minh City’s budget revenue surpassed VND500 trillion in just 11 months of 2024.
Multiple drivers propel positive growth in budget revenue

Multiple drivers propel positive growth in budget revenue

VCN - Dr. Bui Dang Dung, former Deputy Chair of the National Assembly’s Finance and Budget Committee, believes that the 2024 state budget revenue results are highly encouraging, reflecting the concerted efforts of the Government, relevant agencies, and the business community amid challenging economic conditions.

Latest News

Sustainable fashion presents promising niche market for textile manufacturers

Sustainable fashion presents promising niche market for textile manufacturers

The combination of sustainability and culture will open up more opportunities for Vietnamese textile enterprises to strengthen their position in the global market and capture the promising Nordic fashion market.
VN

VN's car industry to diversify supply chain

While China remains a significant supplier, recent trade data highlights Việt Nam’s efforts to diversify supply to meet industry demands.
Exports of agro-forestry-aquatic products down nearly 5 per cent in January

Exports of agro-forestry-aquatic products down nearly 5 per cent in January

Việt Nam’s export value of agro-forestry-aquatic products was estimated at US$5.08 billion in January, marking a 4.9 per cent decline compared to the same period last year.
Thailand reviews anti-dumping tax on Vietnamese steel

Thailand reviews anti-dumping tax on Vietnamese steel

TRAV recommended that the Việt Nam Steel Association (VSA) notify relevant local manufacturers and exporters to answer the investigation questionnaire within the prescribed deadline.

More News

In the first 15 days of 2025, total import-export turnover reached more than US$34 billion

In the first 15 days of 2025, total import-export turnover reached more than US$34 billion

VCN - Total import-export turnover in the first half of January 2025 reached more than US$34 billion, the trade balance had a deficit of nearly US$2 billion.
Pangasius fetch record price in early 2025

Pangasius fetch record price in early 2025

Currently, larger pangasius weighing over 1.2kg, are selling at VNĐ32,440 (US$1.29) per kilogram, a record high not seen since 2022.
Việt Nam and India trade reached $15 billion in 2024

Việt Nam and India trade reached $15 billion in 2024

Trade relations between Việt Nam and India continue to flourish, with bilateral trade turnover reaching around US$15 billion in 2024.
Việt Nam

Việt Nam's port firms thrive in 2024

Strategic investments and expansions are expected to further enhance the sector’s performance.
Software exporter looks to new pace of growth

Software exporter looks to new pace of growth

FPT Software (F-Soft) Đà Nẵng plans to earn VNĐ3.6 trillion (US$144 million) in exports in 2025 after introducing a third campus at the FPT Complex and signing a strategic deal with the city.
Việt Nam

Việt Nam's exports to EU see impressive recovery in 2024

Việt Nam’s exports to the EU made an impressive recovery in 2024, reaching nearly US$51.7 billion, an increase of $8.08 billion compared to 2023.
Việt Nam–CPTPP trade turnover exceeds $100 billion

Việt Nam–CPTPP trade turnover exceeds $100 billion

The turnover accounts for 13.1 per cent of Việt Nam’s total import-export turnover last year.
E-commerce, a game changer for textile manufacturers

E-commerce, a game changer for textile manufacturers

According to a Việt Nam Textile and Apparel Association (VITAS) report, the proportion of textile businesses adopting e-commerce strategies has increased from 7-8 per cent in 2021, to over 20 per cent by the end of last year.
China remains the largest market for Việt Nam’s cassava and cassava products

China remains the largest market for Việt Nam’s cassava and cassava products

China accounted for 92.85 per cent of the total export volume and 91.77 per cent of the total export value, amounting to 2.43 million tonnes worth $1.06 billion.
Read More

Your care

Latest Most read
Sustainable fashion presents promising niche market for textile manufacturers

Sustainable fashion presents promising niche market for textile manufacturers

The combination of sustainability and culture will open up more opportunities for Vietnamese textile enterprises to strengthen their position in the global market and capture the promising Nordic fashion market.
VN

VN's car industry to diversify supply chain

While China remains a significant supplier, recent trade data highlights Việt Nam’s efforts to diversify supply to meet industry demands.
Exports of agro-forestry-aquatic products down nearly 5 per cent in January

Exports of agro-forestry-aquatic products down nearly 5 per cent in January

Việt Nam’s export value of agro-forestry-aquatic products was estimated at US$5.08 billion in January, marking a 4.9 per cent decline compared to the same period last year.
Thailand reviews anti-dumping tax on Vietnamese steel

Thailand reviews anti-dumping tax on Vietnamese steel

TRAV recommended that the Việt Nam Steel Association (VSA) notify relevant local manufacturers and exporters to answer the investigation questionnaire within the prescribed deadline.
In the first 15 days of 2025, total import-export turnover reached more than US$34 billion

In the first 15 days of 2025, total import-export turnover reached more than US$34 billion

VCN - Total import-export turnover in the first half of January 2025 reached more than US$34 billion, the trade balance had a deficit of nearly US$2 billion.
Mobile Version