Giant state-run Viet Nam National Oil and Gas Group (PetroVietnam) is set to suspend 112 projects this year worth around VND6 trillion (roughly US$375 million) in an effort to curb inflation and practice thrift under the government’s direction.

During the past six months, PetroVietnam pumped out 7.19 million tons of crude oil and 3.62 billion cu.m of gas, realizing 95% and 106% of its yearly targets respectively

PetroVietnam chairman Mr. Dinh La Thang told the press yesterday that the firm has ordered its subsidiaries to immediately halt the purchasing and building of new offices, real estates, and other projects already been ratified but not yet been carried out.

This shelved amount accounts for 25% of total capital registered with the government early this year for business and service activities, he added.

Mr. Thang also mapped out the group’s plan for the upcoming time.

Accordingly, the firm is striving to exploit 15.5-16 million tons of crude oil this year.

Amidst growing crude oil prices in the world, ensuring exploitation output is most important to boosting export turnover, contributing to the state budget, he said.

For this purpose, it plans to tap five oil wells ahead of schedule, including Ca Ngu Vang (Gold Tuna) and Bungaorkid (Malaysia) wells which are expected to bring out the first barrels later this month.

The three other wells are Phuong Dong, Su Tu Vang (Gold Lion) and Song Doc, to be exploited in August and September.

In addition, PetroVietnam is calling for foreign investment in exploring and exploiting oil and gas in potential areas, while seeking overseas investment opportunities.

The company is finalizing negotiations to sign contracts on oil and gas exploration and exploitation in Russia and Venezuela, Thang added.

In the past six months, the group discovered 5 new oil and gas fields, and signed 8 new contracts including six with foreign parties. It also pumped out 7.19 million tons of crude oil and 3.62 billion cu.m of gas, realizing 95% and 106% of its yearly targets respectively .

Meanwhile, its revenues reached more than VND144 trillion during the period, a year-on-year increase of 70.5 percent.