VietNamNet Bridge – The Vietnam Oil and Gas Group (PetroVietnam) has plans to speed up crude oil extraction this year to reverse a fall in revenue triggered by the world oil price plunge.

Speaking at a web conference organized by the Ministry of Industry and Trade last week, PetroVietnam deputy general director Do Chi Thanh said the group extracted 14.9 million tons of oil equivalent in the first six months of this year, a 6.6% year-on-year increase.

PetroVietnam reported an overall crude oil output of 9.26 million tons in the period, up 9.2% year-on-year.

However, the group’s half-year revenue fell by 8% year-on-year to VND168 trillion (US$7.7 billion) due to the world oil plunge, with net profit of VND23.6 trillion (US$1.08 billion).

The lower-than-expected oil price hit PetroVietnam’s earnings. In the first six month of 2015, the oil price hovered in the range of US$63-65 per barrel, far lower than the target of US$100 a barrel the group reported to the National Assembly earlier, Thanh said.

Therefore, PetroVietnam plans to pump an extra one million tons this year.

In the initial plan for 2015, PetroVietnam expected to pump about 14.74 million tons of crude oil and sell at an expected price of up to US$102 to help the Government realize the gross domestic product growth target of 6.2%.

However, the Government at a six-month review meeting assigned the ministry to revise up the crude oil pumping target for PetroVietnam as world oil prices were projected to continue staying low.

Last December, Minister of Finance Dinh Tien Dung estimated crude oil revenue at VND93 trillion in 2015 if the world’s oil price was around US$100 per barrel.   

Minister of Industry and Trade Vu Huy Hoang told the conference that crude oil is a major contributor to State budget collections.