Petrovietnam gave an overview of its operations and plans for future development at the Offshore Technology Conference in Houston today. The company seeks to grow to meet the expanding energy needs of Vietnam. Dr. Do Van Hua, president and CEO of Petrovietnam, along with Dr. Do Van Khanh, president of Petrovietnam Exploration & Production (PVEP), and Mr. Dzung Phan, vice president of Petrovietnam Drilling (PV Drilling), presented the different aspects of the growing organization.
Exploration began in Vietnam in the 1960s and has grown to 90 PSCs offshore producing 330,000bo/d. The company went international in 2000 and now is active in 20 countries including Russia, Uzbekistan, Venezuela, and Algeria. Hua highlighted three onshore projects that are underway: a development in Algeria will come online next year and two Russian projects will start producing soon, one in 2014 and one in 2015. The company’s Venezuelan project is heavy oil and is still in planning.
Refining capacity has grow to 130,000 b/d, meeting 35% of the nation’s need. But, energy demand is expanding at 15% per year, while the economy is growing 3-4% per year. The company is addressing this need by expanding capacity with the building a 200,000b/d refinery in the north that will go online by late 2016 or early 2017, and it has plans for another of similar size to be built in the south of the country. The three refineries should meet 100% of the country’s need for refined products and support economic growth.
Khanh highlighted the nation’s offshore potential. Of the 43 active PSCs, 29 are being explored and 20 are under development or producing. PVEP is presently producing 200,000b/d (120,000b/d net) with 1.6Bboe in reserves. Multiple fields will come online over the next few years, four this year, and seven in 2015 and in 2016. Remaining proved reserves are 921MMboe. He noted that Vietnam’s offshore undiscovered reserves lie mostly in deepwater and are significant at 3.25Bcmoe.
Phan said that drilling activity is high with 60 active petroleum contracts, keeping his five rigs busy as well as contract rigs. He hopes to grow his 3 jackup fleet and eventually add semisubmersible capability beyond the one semisub tender in his fleet. PV Drilling also provides a full range of well services and is seeking to expand its workforce through training, while strengthening its operational capability.