Vietnam Earns $47 Billion from Vietsopetro during 35 Years

Tuan Minh

10:29 15/08/2016

BizLIVE - The Vietnamese government has raked in $47 billion from Vietsovpetro during the firm’s 35 years of operations.

Vietnam Earns $47 Billion from Vietsopetro during 35 Years

A platform operated by Vietsovpetro. Photo: Vietnam News Agency.

The Vietnamese government has earned some $47 billion worth of profit and taxes from Vietsovpetro, an oil and gas joint venture between PetroVietnam and Zarubezhneft, during the firm’s 35 years of operations.
The Russian side booked a profit of $11 billion during the period.
The joint venture has exploited about 220 million tons of crude oil since its formation in 1981, accounting for 62% of total oil output in Vietnam, and over 30 billion cubic meters of gas. Its turnover has hit $74 billion.
During the first half of this year, Vietsovpetro posted a profit of $148 million, of which $75.5 billion corresponded to PetroVietnam, which holds a 51% stake in the joint venture, and the Russian partner – Zarubezhneft – took $72.5 million.
The firm pumped 2.54 million tons of oil and tapped 906 million cubic meters of gas in the six-month period, contributing $423 million to state coffers.
It is expected to produce over five million tons of oil this year with the price averaging $45 a barrel. Its turnover is projected to reach $1.7 billion while its profit is set at $253 million.

TUAN MINH