The goal of PVN on the overseas petroleum investment is facing difficulties

However, according to the scientists and experts, this goal of PVN may be 'stuck' if the Laws on Investment and  Management of State Capital Use will not be appropriately regulated and their application without the consistency with international practice.

In its overseas oil and gas investment plan, PVN will select regions and countries with the high oil and gas potential, good investment environment, favorable political relations by the priority order: Federal Republic of Russia and countries under the former Soviet Union, Southeast Asia, North and South America, North Africa and the Middle East Region.

In the project “The Development Strategy of PVN up to 2035” approved by the Prime Minister, PVN has planned to exploit oversea oil and gas production of 8 - 11 million toe/year, among that 3 – 8 million tons of crude oil/year in 2016-2025 period and 10 – 12 million toe/year with 7 – 8 million tons of crude oil in 2026 – 2035 period.

According to the report of the Ministry of Industry and Trade, the total amount of overseas oil that PVN has exploited so far is 15.6 million tons including 2019 production as 2.04 million tons.

However, at the present, PVN is facing the 'double impact' as the Covid-19 pandemic and dramatic oil price dropping (US$ 30/barrel) that leads to sharp drop of PVN crude oil turnover.

According to calculations, in the case, if the oil price drops to US$ 30/barrel, the PVN crude oil turnover will drop to US$ 2.36 billion from US$ 4.668 billion (at the price of US$ 60/barrel) as approved by Vietnam National Assembly.

So, it can be said that the goal to continue carrying out overseas oil and gas searching, exploring and exploiting activities of PVN is facing difficulties even more than ever.

PV.