~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

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[Year 2002]

Petrovietnam targeting higher exports

PetroVietnam is planning to export a further 400,000 tonnes of crude oil during the latter half of the year, in a bid to bolster declining export figures. The move has sparked scepticism among market analysts, who say any increase in export volume is very difficult given the low consumption of crude oil as the world grapples with economic recession.

They say that the country's two biggest crude oil importers - the United States and Japan - will reduce purchases because of sluggish growth of their national economies. The latest statistics from PetroVietnam bear them out.

The US, Vietnam's biggest customer who accounted for 27.78 per cent of the country's crude export last year, has ordered less this year; and Japan, who accounted for 23.89 per cent, is yet to order more. Vietnam exported about 8.21 million tonnes of crude in the first six months of the year for about US$1.4 billion, marking a year-on-year reduction of 17 per cent in value. The decrease was the result of the fluctuations in world crude prices and lower demand from foreign countries.

Last month, the export price fell $33.92 a tonne to $170.75. Lower earnings from crude oil was party responsible for a 5.9 per cent year-on-year fall in the value of total exports in the first half of the year.

It was not all gloom on the crude oil export front, however, with China and Singapore showing their interest in purchasing more crude oil from Vietnam this year onwards. In fact, market analysts predict that China, which is currently buying 22.2 per cent of Vietnamese crude, will become the nation's largest oil importer this year.

Energy24 - July 04, 2002.


Petrovietnam, BP discuss $800 m gas hub

HANOI - State oil firm Petrovietnam and Britain's BP Plc are considering creating a gas processing hub for Vietnam's Nam Con Son basin, which could involve investment of about $800 million, a BP official said on Monday. The official said talks between Petrovietnam, BP and other foreign firms interested in developing the gas-rich area off southern Vietnam had been under way for several months but were still at an early conceptual stage.

The investment -- a rough provisional estimate -- would be in addition to a $1.3 billion integrated project that BP is already involved in the Nam Con Son basin, said the official, who did not want to be identified. "Petrovietnam is leading a group of people who have an interest in the basin," he said. "They are talking about how they could develop it in the most effective way. "That could mean developing some kind of processing hub for the basin. Also they are considering the expansion of the current Nam Con Son pipeline."

The official said BP was an "active" member of the group, but investment in any such project would come from all parties involved. He did not name the other foreign firms. "The group is talking about some rough cost estimate of about $800 million for the developing of the whole basin. That would include the processing hub and expansion of the pipeline. "The gas would come to the one main hub for processing before it is exported or transported somewhere else." He said it had not been decided where a processing hub would be located, although it would be in the vicinity of the basin, or what the timeframe for construction should be.

Alan Johnson, a minister of state at Britain's Department of Trade and Industry, who was visiting Vietnam on Monday, had been briefed by BP on the plan, the official said. Earlier on Monday, Johnson initialled an agreement on investment protection with the Vietnamese government, which he said should boost business confidence in the Southeast Asian country. Britain is the largest non-Asian investor in Vietnam, largely due to BP's existing project in the Nam Con Son basin. That project involves the development of the Lan Tay and Lan Do gas fields in Vietnam's block 06.1, a 400-km (250-mile) pipeline to shore and a gas-fired powerplant.

BP's foreign partners in the venture are India's ONGC Videsh, a subsidiary of the state-run Oil and Natural Gas Corp, and Conoco Inc.

Reuters - July 01, 2002.