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Vietsovpetro's revenue down 28%

Released at: 20:50, 03/01/2017

Vietsovpetro's revenue down 28%

Photo: Vietsopetro

Vietnam - Russia oil joint venture exploits 5 million tonnes of crude oil in 2016 but revenue and profits hit by falling prices.

by QuocUy / 4

Vietsovpetro - an oil and gas exploration joint venture between Vietnam and Russia - exploited 5 million tonnes of crude oil in 2016, generating yearly revenue of more than $1.7 billion, a decline of 28 per cent compared to 2015.

The company also contributed over $680 million to the State budget, down $300 million.

The Russian partner posted a profit of $121 million and the Vietnamese side nearly $126 million, falls of 71 per cent for both against 2015.

Vietnam News Agency quoted a source from Vietsovpetro as saying that the main reason for the decline in production was lower global oil prices. The average oil price last year stood at $45 per barrel, $9 less than in 2015. Oil reserves at existing mines also continue to gradually decline.

Vietsovpetro pumped ashore some 1.68 billion cu m of gas in 2016, representing 130 per cent of the annual plan and bringing its total to over 30.9 billion cu m to date.

Headquartered in the southern province of Ba Ria Vung Tau, Vietsovpetro is a joint Russian-Vietnamese enterprise in oil and gas exploration established in 1981 under an inter-governmental agreement between Vietnam and the Soviet Union.

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