PVN exported crude oil at an average price of US$45 a barrel in 2016, much lower than US$60 per barrel projected in the State budget plan approved by the National Assembly.  

Last year, the State-owned firm pumped 17.23 million tons of crude oil, 1.19 million tons higher than targeted. It generated revenue of VND452.5 trillion (US$19.9 billion) and paid VND90.2 trillion in taxes.

The company did not announce its 2016 profit or losses. PVN would be profitable if the oil price exceeds US$45 per barrel, the firm said in a report.     

PVN’s exploitation costs and payments to the State budget are estimated at US$43.5 a barrel so its profit, if any, is small. Notably, PVN’s exploitation costs at Song Doc oil field amount to US$58 per barrel.   

The company has to increase output over the past two years to offset the global oil price plunge.

According to PVN’s financial plan for 2017, the oil price is projected to stand at US$50 a barrel.

Source:  thesaigontimes.vn