PetroVietnam to boost new drilling

PetroVietnam will continue to boost oil and gas exploration and exploitation activities this year to offset the impact of the slow recovery in crude oil prices and higher costs. - Photo cafef.vn

This would help PetroVietnam deal with difficulties in production and business arising from those factors.

Nguyen Vu Truong Son, CEO of PetroVietnam, said the increase in oil exploitation productivity was quite difficult. Most of the oil wells have been exploited to the maximum. The group's expectations mostly focussed on new oil well explorations and exploitation to ensure an increase in oil and gas reserves.

To drill new oil wells in 2016, efforts are on to limit the fall in crude oil productivity in 2017, according to Son. Priorities will be given to highly-effective projects focussed on developing the Ca Rong Do, Lo B, Ca Voi Xanh oilfields.

According to PetroVietnam, while exploiting one million tonnes of crude oil for the 2016 target, it has made efforts to continue drilling new wells in Su Tu Nau oilfield (Brown Lion) in Block15-1. It is expected to start drilling this month and be put into operation by September this year. The oil productivity is expected to reach 67,000 tonnes.

The group will also continue to drill two more wells including RC-9 in block 09-1. It is expected that oil productivity can reach between 10,000 tonnes to 15,000 tonnes.

PetroVietnam is also considering drilling two more wells at the Te Giac Trang (White Rhinoceros) oilfield in block 16-1 of the Cuu Long Basin, which could extract crude oil amounting to 43,000 tonnes.

PetroVietnam will work with contractors to conduct specific projects and ensure drastic measures to successfully implement exploration and exploitation activities of government-approved projects.

This year, PetroVietnam has also set a target of exploiting crude oil productivity of 17 million or one million surpassing this year's plan.

The group says that despite falling crude oil prices it has accomplished all targets for the first half this year. Its crude oil exploitation volume reached 14.75 million tonnes, or 1.1 million over the target. PetroVietnam also supplied 10.74 kWh of electricity to the national power grid.

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