Thursday, January 24, 2008

Vietnam's oil production slumps for third year in 2007

The state-run oil and gas group, PetroVietnam, reported lower output for the third straight year with 15.91 million metric tons of crude oil produced in 2007.

PetroVietnam has previously reported output of 17.3 million tons in 2006.

The output figure for 2007 included more than 100,000 tons from a partly-owned Malaysian field, Tran Ngoc Canh, General Director of PetroVietnam said Monday.

An engineer at a Vietsovpetro oil drilling platform, a joint venture between PetroVietnam and Russia’s OAO Zarubezhneft

The 2007 production equates to about 327,000 barrels per day, based on conversion ratios previously given by the oil producer.

“Production at Bach Ho is falling because the field is getting old,’’ said Canh.

PetroVietnam forecast crude oil production this year at 16 million tons, without specifying how much may come from fields outside Vietnam.

In addition to Malaysia, PetroVietnam also has stakes in exploration, or production ventures, in countries including Algeria and Indonesia.

The oil group’s overall sales rose 18 percent to VND213.4 trillion ($13.35 billion), according to the company, which did not give a reason for the increase.

Source: Bloomberg