National oil and gas group PetroVietnam plans to shut down or reduce output at some of its oil fields if crude oil prices fall below US$30 per barrel, said Deputy CEO Do Chi Thanh during a Monday meeting.
The group posted revenues of VND81.1 trillion ($3.65 billion) last month, meeting just 70 percent of its target. During that time, average crude prices declined 35.4 percent year-on-year to $32.4 per barrel, Thanh said. Three of its subsidiaries have suffered losses, including PetroVietnam Oil Corporation which has lost more than VND100 billion.
Vietsovpetro, a joint-venture between PetroVietnam and Russia's Zarubezhneft, is struggling to fund production, he added.
Last month, CEO Tu Thanh Nghia, reported that the joint-venture faced a deficit of around $230 million even after numerous efforts to cut costs, including shutting down two of its subsidiaries and laying off 400 employees.
Last year, PetroVietnam reported a 24.8 percent drop in year-on-year revenue or VND560.1 trillion ($24.63 billion). During that time, it produced 18.74 million tons of oil at an average cost of $24.4 per barrel compared to $36.4 in 2014, local media reported.
The group plans to cut its output to 16.03 million tons this year and reduce production costs by 10-20 percent.
The group posted revenues of VND81.1 trillion ($3.65 billion) last month, meeting just 70 percent of its target. During that time, average crude prices declined 35.4 percent year-on-year to $32.4 per barrel, Thanh said. Three of its subsidiaries have suffered losses, including PetroVietnam Oil Corporation which has lost more than VND100 billion.
Last month, CEO Tu Thanh Nghia, reported that the joint-venture faced a deficit of around $230 million even after numerous efforts to cut costs, including shutting down two of its subsidiaries and laying off 400 employees.
Last year, PetroVietnam reported a 24.8 percent drop in year-on-year revenue or VND560.1 trillion ($24.63 billion). During that time, it produced 18.74 million tons of oil at an average cost of $24.4 per barrel compared to $36.4 in 2014, local media reported.
The group plans to cut its output to 16.03 million tons this year and reduce production costs by 10-20 percent.
Source: Thanh Nien News
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