Oil rigs of Vietsovpetro in the Bach Ho oil field

The layoff has started since 2014 to improve the firm’s competitiveness and operational efficiency in the wake of continued decline of global oil prices, said head of Vietsovpetro’s Trade Union Nguyen Quoc Dat at a meeting on May 3.

The firm’s restructuring has been assisted by the US management consulting firm McKinsey to make sure the process is carried out in accordance with international standards.

Vietsovpetro will merge a number of units and divisions with similar functions. It will also dissolve several units and divisions due to reduced workload and outsource manual workers to cut costs.

According to this plan, Vietsovpetro will reduce the number of employees by more than 2,200 by 2020. Between 2014 and 2017, the company has ended contracts with nearly 2,000 workers.

The joint venture aims to generate 1.55 billion USD in revenue, and profit for the Vietnamese side is expected at 115 million USD and that for Russia is nearly 111 million USD.

In 2017, the company exploited over 4.73 million tonnes of oil and condensate and 234 million cubic metres of natural gas, or 95 percent and 124 percent of the yearly plan, respectively. It pocketed 1.97 billion USD in revenue, 3.5 percent higher than the yearly goal.

The success was partly thanks to the venture’s efforts to apply advanced solutions and internal services to save costs.-VNA