The working group of the Prime Minister headed by the Chairman of Government Office – Minister Mai Tien Dung has just concluded checking results of Petrovietnam. In the conclusion, Minister Dung asked Ministry of Finance to advise the government, Prime Minister to consider a special mechanism on providing guarantee of parent company to the subsidiaries for foreign loans in proportion to PVN capital contribution in Long Son Petrochemical Company Limited to invest Petrochemical Complex in Southern Vietnam.
According to checking conclusions, in the first six months of 2017, though fluctuation of oil price, PVN still yet exploited 7.9 million ton of oil, exceeded 161,000 ton above the plan and 5.25 billion cubic meters of gas, reduced 2.4% in comparison with the plan; produced 1,111 billion kWh of electricity, 909,000 ton of nitrogen fertilize and 2.99 million ton of gasoline. In the business, PVN achieved a total turnover of VND 247,100 billon, exceeded the plan by 15% and a benefit after tax about 13,100 billion exceeded the plan by 15%.
However, the working group also pointed out that PVN has still a lot of limitations and weaknesses such as there are no good solution for exploring oil and gas at home and abroad, slowly handling the shortcomings of losses projects, the progress of many projects is still behind schedule, defining the value of the enterprise for making the equitization plan does not meet requirements…Therefore, it is required PVN to concentrate for directing, taking measures to overcome and timely correcting the shortcomings.
The government asked PVN to ensure safely exploiting 13.28 million ton of oil in 2017 rightly according the direction of Prime Minister to take part in achieving general economic growth rate of the country.
For several shortcomings, the Working group and PVN have agreed to handle as follow: Dung Quat Bio-fuel Company is required to continuously work with the constructors to thoroughly handle difficulties in EPC contract, wastewater treatment system and project investment finalization; PVN is required to thoroughly handle difficulties and weaknesses in 5 losses projects as 03 Bio-fuel projects, Dinh Vu Fiber project and Dung Quat Ship Industrial Single Member Company Limited in accordance with viewpoint of the Politburo.
PVN is required to carry out the enterprise restructure in accordance with the project already approved by Prime Minister for 2016 – 2020 period.PVN must speed up the equitization progress; divestment; full, accurate, objective and transparent evaluation of enterprise value for completing equitization plan as direction of Prime Minister.
Ministry of Finance is also assigned to advise government in considering PVN’s proposal on using Fund search, exploration and evaluation of PVEP projects in 2017 to solve problems of the capital sources in oil and gas exploratory activities.