PetroVietnam urged to handle inefficient projects

14:44 | 09/08/2017 Industry

The Vietnam National Oil and Gas Group (PetroVietnam) has been urged to accelerate the handling of lingering loss-making projects, in line with market mechanisms.

Minister and Chairman of the Government Office Mai Tien Dung speaks at the working session (credit: chinhphu)

Minister and Chairman of the Government Office Mai Tien Dung also emphasised that the Government will not provide any more money for these inefficient projects, while leading a Government Working Group to work with PetroVietnam, in Hanoi on July 19.

Speaking at the working session, General Director of PetroVietnam Nguyen Vu Truong Son stated that the group will focus on dealing with five out of 12 inefficient projects in the remaining months of 2017, including PVTex Dinh Vu Yarn Plant, Dung Quat Shipbuilding plant, and three bio-fuel factories in Phu Tho, Quang Ngai and Binh Phuoc provinces.

Son noted that PetroVietnam will restart the operations of two bio-ethanol plants in Binh Phuoc and Quang Ngai this year, in order to meet the demand for E5 bio-fuel blending to completely replace RON 92 petrol from January 2018.

Head of the Government Working Group Mai Tien Dung also conveyed the PM requests for an explanation of the issues concerning PetroVietnam's growth, the settlement of loss-making projects, the acceleration of tardy projects, and the building of new impetus for production and business activities.

Accordingly, PetroVietnam has been assigned to exploit 13.28 million tonnes of crude oil in 2017 (an increase of 1 million tonnes compared to the initial plan) to contribute to achieving the national GDP growth rate of 6.7%.

Minister Dung said that the increase of output must ensure a long-term source of raw materials and energy for the country.

Deputy General Director of PetroVietnam Nguyen Quynh Lam argued that oil exploration provides the premise for a long term and sustainable development of oil exploitation.

However, the funds for oil exploration of PetroVietnam and its subsidiaries have been exhausted, requiring quick guidance from the Government and the Ministry of Industry and Trade to create further financial sources for exploration funds.

Lam also suggested that the Government allows PetroVietnam to promote offshore oil exploration to increase oil reserves and ensure oil output in the coming years.

The Government had assigned PetroVietnam with 189 tasks to be achieved from January 2016 to July 10, 2017. Of which, 141 tasks have been achieved while 48 others have not yet been fulfilled.

Minister Dung concluded that there remain a number of inadequacies in policies and mechanisms for the operations of PetroVietnam, which requires the joint efforts of many related ministries and agencies to address.

At the same time, PetroVietnam was also asked to boost restructuring and to take initiative in dealing with its existing problems.

Theo NDO