Improved financial mechanism is required for Vietnam National Oil and Gas Group (PetroVietnam) to ensure sustainable development.

Overview of the meeting. Photo: Quang Hieu

Prime Minister Nguyen Xuan Phuc stressed the view in a government meeting discussing a draft decree on finance management of PetroVietnam on March 3, noting any changes must be in compliance with the Petroleum Law and other regulations.

According to Phuc, the petroleum sector holds a significant role in the country’s development, not only in terms of economy, but also in national defense and security.

“Bearing that in mind, government agencies should create more favorable conditions for the sector’s development, especially in the search for new oil and gas fields, as well as promoting market demands for petroleum-related products [fertilizer, electricity],” Phuc said.

The PM requested the Ministry of Finance to revise and perfect current regulations on retrieving funds from unsuccessful oil prospecting projects for new oil and gas fields, including a uniform risk mechanism.

Phuc set the deadline for the submission of the draft decree on March 20, expecting improved conditions for the use of state capital at PetroVietnam to ensure the state-run firm’s growth in the future.

Despite difficult economic climate in 2020, PetroVietnam paid over VND83 trillion (US$3.62 billion) to the state budget.