HANOI: Vietnam produced 12.3 million tons of crude oil between January and August, up 8.7 percent year on year even though the government has been urged to cut oil production given sharp decline in global prices this year.
August oil output reached 1.5 million tons, posting a 3.5 percent month-on-month increase, according to the Ministry of Industry and Trade’s latest report. Vietnam targets to produce 14.74 million tons of oil this year.
At a government meeting at the end of June, several cabinet ministers said Vietnam may need to raise its oil production by between 1 and 2 million tons in order to achieve its economic growth target of 6.2 percent.
They said sharp declines in world prices have reduced oil revenues. However, the government has been cautious about the proposal. Last week its spokesperson said it will continue studying “all relevant factors” to have the best plan for oil production.
He said the government has already prepared some response plans and will be ready even if oil prices fall to US$40 per barrel, from around $53 at the time, and that a key solution will be to reduce production costs further to increase profit margins.
