Central technology rig No. 2 of Bach Ho field. Photo: Vietsovpetro
This year Russia and Vietnam will celebrate the 40th anniversary of the establishment of the joint venture in geological exploration and oil and gas production on the southern continental shelf of Vietnam (Vietsovpetro) and the 35th anniversary of the start of industrial oil production in oil and gas fields.
During the past four decades, the Joint Venture has remained the flagship of Russia-Vietnam cooperation in the energy sector, making a great contribution to strengthening bilateral economic and trade relations. Activities of Vietsovpetro have always been paid great attention by the leaders of Russia and Vietnam and often discussed in meetings and negotiations at the high and highest levels.
The establishment of action coordination between Russia and Vietnam in the oil and gas sector is one of the glorious pages in the history of relations between our two countries.
In the 70s of the last century, Western companies conducted geological exploration activities on the continental shelf of South Vietnam, but did not discover oil and gas resources.
Soviet experts, following the results of a thorough analysis of similar documents, recommended conducting in-depth surveys and more specific studies of seismic surveying and drilling data.
On 19th June 1981, the Soviet-Vietnamese Intergovernmental Agreement was signed on the establishment of Vietsovpetro and five years later it began to produce industrial oil in oil fields.
During those difficult years, there were many pessimists who expressed doubts about the success of our common cause. However, the Soviet and Vietnamese experts honorably completed the task that had been set.
In 1988, at the foundation of Bach Ho field, large “black gold” seams were discovered. The discovery became an important milestone in the development of Vietnam’s oil and gas industry. The peculiarity of the extraction was that the oil was pumped up not from the sedimentary rocks but from the basement of the earth’s crust.
During that period, Vietsovpetro’s experts applied a relatively bold technology that is now widely used by leading oil and gas companies in the world.
During its operation in Vietnam, Vietsovpetro has organized the basic survey of oil and gas reserves on the continental shelf of the Socialist Republic of Vietnam and conducted geological exploration activities on a large scale.
Nine fields have been opened with a reserve volume of 300 million tons. Modern production infrastructure has been built offshore and onshore, and a system of oil and gas drilling, production, storage, transportation and export has been established. More than 800 km of pipelines have been put into operation and about 500 drills have been carried out.
The multi-ethnic group of the Joint Venture regularly researches and implements to increase the effectiveness of the Joint Venture in the field of drilling and repairing wells, designing and building communication systems and hydrotechnical works and at the same time optimize the production process.
A great attention has been paid to the addition of the reserve base, the renewal of technological equipment, and the improvement of the professional qualifications of the staff.
The operation of Vietsovpetro makes a great contribution to strengthening the fuel-energy complex of the Socialist Republic of Vietnam, ensuring energy security for the country and revenue to the state budget, creating more jobs, promoting the development of supporting industries and scientific fields.
According to the criteria of economic efficiency, the joint venture is occupying a worthy position not only in the Vietnamese market but also in the world in general.
The Joint Venture’s share accounts for more than a third of all oil production and nearly 15% of natural gas. Over the past 35 years, the Joint Venture has produced more than 240 million tons of oil and gas.
As of March 2021, the revenue from oil and gas consumption is 86.7 billion USD, total revenue to the budget of the Socialist Republic of Vietnam is 52.6 billion USD.
The efficient management and smoothness in the production process have allowed Vietsovpetro to operate sustainably even in the context of a pandemic of the new strain of corona virus without harming health and success of the joint venture’s employees.
According to the results in 2020, the volume of oil extracted was 3.4 million tons, an increase of 9% compared to the criteria in the plan, brought ashore about 1.2 billion m3 of gas, revenue was 1.14 billion USD.
Today Vietsovpetro is a large united team of professionals who is loyal to the cause.
There are 16 units in the Joint Venture that explore, produce and transport oil and gas, research and design solutions of innovation and environmental protection. About 8 thousand people are working in the Joint Venture.
Conditions have been established for the training and professional development of the staff, for their personal promotion and full meaningful rest.
At the Joint Venture, a special company culture has been formed, allowing Russian and Vietnamese experts to smoothly and efficiently carry out the set tasks and achieve high economic criteria.
Until today, Vietsovpetro as before is still among the most important items in the Russia-Vietnam coordination of actions and is making a great contribution to strengthening the comprehensive strategic partnership between Russia and Vietnam.
The results that have been achieved are a clear confirmation of a meticulous, delicate and selfless activity of the Russian and Vietnamese experts, of the friendship and mutually beneficial cooperation between our two countries.
On this occasion, I would like to congratulate the leaders and multi-ethnic workforce of Vietsovpetro on the occasion of the great anniversaries, wish you all good health and new achievements in production./.