PetroVietnam rolls out measures to cope with COVID-19 and oil prices

On March 11, 2020, PetroVietnam starts implementing Directive No.1151/CT-DKVN on the implementation of urgent tasks and solutions to cope with the dual effects of the COVID-19 epidemic and falling oil prices.

Facing the complicated situation of the COVID-19 epidemic and the fluctuations of the oil market, PetroVietnam’s management board had issued Directive 1151 to require the entire group’s staff and its affiliates to actively capture and update market information on supply and demand and the price of crude oil and petroleum products in order to build up specific plans and operating scenarios to fit any turn of events.

Oil exploitation operatiosn at the Bach Ho (White Tiger) Oil Field

Coping with the sharp decline of oil prices since March 9, PetroVietnam is preparing a short-term plan for a long-term reduction in price, with scenarios for different price levels ($30, $40, $45, and $50 per barrel).

Subsidiaries and affiliates of PetroVietnam were assigned to compile scenarios and detailed solutions, even for the worst case scenario of prices crashing further.

The group will also focus on business activities while cutting off meetings and conferences, cutting costs and saving expenses by applying new technologies and improving labour efficiency. Especially, the group has compiled a set of solutions to prevent COVID-19 from spreading to oil fields and manufacturing sites.

2020 is the fifth year that PetroVietnam implemented the Vietnam Oil and Gas Industry Development Strategy to 2025 with orientation to 2035.

In January, PetroVietnam reported having surpassed many of its monthly targets, including revenue and state budget contributions. Its total revenue reached VND66.3 trillion ($2.88 billion), up 16.2 per cent against the monthly target, while contribution to the state budget hit VND8.3 trillion ($360.87 million), exceeding the goal by 17 per cent.

Meanwhile, PetroVietnam’s oil and gas exploitation increased 8.5 per cent against the monthly plan. It produced 147,300 tonnes of fertiliser and more than 1.2 million tonnes of fuel, surpassing the targets by 2.5 and 5.3 per cent, respectively.