COVID-19 restrictions hamper export logistics in 2021
PetroVietnam, Vietsovpetro exceed 2021 upstream output targets
PV Oil fetching excessive premiums for Q1 home candy crude cargoes
Vietnam’s crude exports fell in 2021, as state-wide lockdowns and motion restrictions hampered key oil terminal and port operations within the yr, however the Southeast Asian producer’s upbeat upstream output will doubtless result in a revival in candy crude and condensate shipments in 2022, trade and buying and selling members stated.
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Vietnam exported 218,111 mt, or 51,573 b/d, of crude oil in December, down 17% from a yr earlier, whereas the total yr 2021 exports fell 32.8% to three.13 million mt, newest information from Vietnam Customs confirmed.
Thailand, Australia and China had been the foremost consumers of Vietnam’s crude oil all through 2021.
Scarcity of manpower at key export terminals and buying and selling operation places of work on account of a sequence of strict social distancing and motion restriction measures have led to gradual abroad gross sales of home crude total in 2021, a advertising and buying and selling supervisor at state-run PetroVietnam instructed S&P International Platts.
“Nonetheless, Vietnam’s upstream funding and exercise stored up its tempo and the nation’s crude gross sales will doubtless rebound in 2022 as many Asian refiners are eager to acquire regional candy crude spot cargoes in occasions of tight OPEC and international provide state of affairs,” the PetroVietnam supply added.
PetroVietnam stated its crude oil manufacturing final yr was 10.97 million mt, up 1.25 million mt from the corporate’s preliminary 2021 goal.
Taking full benefit of the upbeat manufacturing and easing logistical operation hurdles in current weeks, PetroVietnam’s buying and selling arm PV Oil has been lively in spot cargo gross sales early within the yr.
PV Oil fetched robust premiums for February-loading crude cargoes. The state-run buying and selling agency bought 300,000 barrels of medium candy Bunga Orkid crude for loading in Feb. 20-26 to a Northeast Asian refiner at Dated Brent plus $5.10/b, Platts reported beforehand.
PV Oil was additionally stated to have bought a 250,000-barrel cargo of Thang Lengthy crude for loading in March 6-10 to a Western buying and selling home at a premium of round $3.50/b to Dated Brent.
In the meantime, Vietnam-Russia three way partnership Vietsovpetro additionally introduced that it was estimated to have produced 3.16 million mt of crude oil and condensate in 2021, surpassing its goal by 165,000 mt.
Vietsovpetro performed a minimum of 4 exploration and appraisal actions at Block 09-1 in 2021, which homes Vietnam’s flagship oilfield Bach Ho, including a reserve of two.2 million mt oil, the corporate stated.
The JV stated it additionally found some oil and gasoline reservoirs of commercial worth whereas drilling at Block 16-1/15 in Cuu Lengthy in early 2021.
In 2022, the corporate plans to supply minimal 2.9 million mt of crude oil and condensate, together with 2.8 million mt from block 09-1.
In the meantime, Vietnam imported 1.098 million mt of crude oil in December 2021, up 13.96% from a yr earlier with a lot of the shipments coming from Kuwait.
In 2021, the nation imported 9.94 million mt of crude oil, 15.4% decrease yr on yr, the customs information confirmed. Imports from Kuwait fell 8.8% in 2021 to eight.76 million mt.
The Kuwait barrels had been for the 200,000 b/d Nghi Son refinery within the central area which started business operation in November 2018.
State-owned PetroVietnam has a 25.1% stake in Nghi Son, with Kuwait Petroleum Worldwide (35.1%), Japan’s Idemitsu Kosan (35.1%) and Japan’s Mitsui Chemical compounds (4.7%).
Vietnam’s crude exports (Unit: mt, except specified in any other case)
Export Vacation spot
Export Vacation spot
*Whole contains different shops
Supply: Vietnam Customs