PetroVietnam joint venture with Russia's Zarubezhneft brings in good revenue, capital recovery is greater than investment

As of December 31, 2022, there were 30 state-owned enterprises and enterprises with state capital in Vietnam investing abroad. Of the total of more than 6.6 billion USD invested by state-owned enterprises abroad, the Vietnam Oil and Gas Group (PetroVietnam) took the lead, accounting for 60.8% of the capital (4 billion USD).

PetroVietnam tiếp tục dẫn đầu khối doanh nghiệp nhà nước với 2,9 tỷ USD thu hồi từ các dự án đầu tư nước ngoài

PetroVietnam General Director Le Manh Hung visited and worked at Rusvietpetro Mine. (Source: PVN)

In 2022, Vietnam earned 1.9 billion USD in profits from foreign investment projects. Of which, PetroVietnam continued to lead with profits repatriated to the country reaching more than 1.1 billion USD.

Minister of Finance Ho Duc Phoc, on behalf of the Government, has just sent a report to the National Assembly on the situation of investment, management and use of state capital in enterprises nationwide in 2022.

According to the report, as of December 31, 2022, there were 30 state-owned enterprises and enterprises with state capital in Vietnam investing abroad. Of the total of more than 6.6 billion USD invested by state-owned enterprises abroad, PetroVietnam led the way, accounting for 60.8% (4 billion USD) of the capital.

Regarding the situation of recovering foreign investment capital, the report said that, as of December 31, 2022, 72 foreign investment projects of 16 enterprises had generated recoveries with a total accumulated amount of more than 4 billion USD, of which 1.9 billion USD in profits were repatriated. Notably, PetroVietnam is the enterprise with the largest amount of recovery with 2.9 billion USD, accounting for 71.09% of the total amount recovered by the state-owned enterprise sector; this number includes profits repatriated to the country of more than 1.1 billion USD, principal and interest collected from loans to shareholders: 549.12 million USD, other recoveries: 1,171.63 million USD.

Assessing the production and business results of overseas investment projects, the Government's Report stated that many projects had positive changes in revenue, however, profits still decreased due to ineffective use of costs.

In particular, the oil and gas exploration and exploitation project of Block 04 in Nhenhexky (Russia) of PetroVietnam is one of the few projects that are evaluated to bring high efficiency, good revenue, and recovered capital greater than the investment amount.

Bir Seba oil and gas project - a symbol of Vietnam-Algeria cooperation. As of the end of June 2023, the project has exploited 48.14 million barrels of oil and is expected to reach 50 million barrels in 2023. (Source: PVN)

It is known that the Rusvietpetro Joint Venture between PetroVietnam and Zarubezhneft is carrying out exploration, development and exploitation activities at 13 oil fields in 04 blocks in the Nhenhexky autonomous region, with geological reserves and oil recovery reserves of about 244 million tons and 96 million tons, respectively.

Since its establishment in 2008, Rusvietpetro's operations have achieved many positive results and are considered one of PetroVietnam's most effective joint ventures abroad today.

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