Hastening the search for new oil and gas fields is a priority of the Vietnam Oil and Gas Group this year to increase reserve. (Photo: pvn.vn)
PetroVietnam said this was not an easy target as investments in upstream production in Vietnam had not recovered since oil prices fell to low levels in recent years.
In addition, the exploitation output of oil fields was dropping significantly because most were reaching their reserve limits. Thus, it was important to hasten the search for potential oil and gas fields to increase reserves, it said.
The group urged the Law on Petroleum 1993 should be amended to encourage investments in upstream business amidst the gradual exhaustion of oil and gas natural reserves.
Statistics showed that investments in searching for oil and gas reserves annually in 2016-18 were equivalent to a third of the sum in 2011-15.
Experts said it was critical to develop mechanisms to attract investment in oil and gas, especially in upstream production, which plays a significant role in the country’s marine economic development strategy.
Proper policies to encourage the development of small and marginal oil fields should be developed, PetroVietnam said, adding that putting marginal oil fields into exploitation was a solution to cope with exhausting oil and gas reserves.
It is important to choose appropriate technical solutions and management solutions to be applied at marginal fields to enhance their efficiency.
Increasing reserves is the first priority of PetroVietnam in 2019 to ensure production output, the group said.
PetroVietnam reported the total exploited oil and gas output at 3.85 million tonnes in the first two months of this year, representing an increase of 7 percent against the company’s target.
It earned revenue of 111.8 trillion VND (4.8 billion USD) in January-February.
In 2018, PetroVietnam exploited nearly 24 tonnes of oil equivalent and add 12.34 million tonnes of reserves.