Vietsovpetro crosses 250 mln ton oil production milestone

Vietsovpetro, a 51-49% joint venture between Petrovietnam and Russia’s Zarubezhneft, has passed the 250 million ton oil production milestone in Vietnamese waters after tapping the first flow in June 1986.

Announcing the landmark achievement, the joint venture said it has produced 1.1 million tons of oil in the year to date, meeting 40% of this year’s plan.

It has earned revenues of $814 million crude oil sales this year, or 51% of the year’s target, it added.

Since its establishment in June 1981, Vietsovpetro has drilled more than 600 wells for oil and gas exploration and exploitation with a total length of more than 2,500 km. It has also built over 60 maritime projects and installed over 800 km of underground pipelines for the fields.

The firm said it has generated oil and gas revenues of over $89 billion so far, with accrual to the Vietnamese side topping $58 billion, including contributions to state coffers.

In Vietnam’s Block 09-1, Vietsovpetro has been developing five fields – Bach Ho, Rong, Gau Trang, Tho Trang, and Nam Rong-Doi Moi. Bach Ho, Vietnam's largest single producing field, has been in production since 1986.

Earlier this month, Vietsovpetro had unveiled plans to invest $28 million in further exploitation of the Bach Ho (White Tiger) oil field. It was also looking to proceed with a project to invest in several offshore wind power projects totaling 2,000 MW in the Mekong Delta province of Tra Vinh.