Page 11 - AsianOil Week 29 2021

AsianOil SOUTHEAST ASIA AsianOil

which was down from the 10.73mn tonnes of PetroVietnam’s statement highlighted that
oil equivalent (435,000 boepd) produced in the the company was also working to solve issues
same period of 2020. at difficult projects, while also building value
The company managed to slash its costs chains.
by VND1.69 trillion ($86.8mn), or 62% of its The oil and gas group’s performance figures
annual targeted savings. came shortly after the company revealed that it
Despite the company’s strong performance, had begun producing condensate and gas from the
PetroVietnam chairman Hoang Quoc Vuong phase 2A project in the offshore Su Tu Trang field.
warned that there were challenges ahead in A PetroVietnam spokesperson told S&P
the second half of this year. Vuong pointed to Global Platts on June 28 that production had
complications surrounding the coronavirus started the previous week, while declining to
(COVID-19) pandemic, such as the emergence provide specifics.
of new variants and the impact these could have PetroVietnam’s upstream arm PetroViet-
on international oil prices. nam Exploration Production (PVEP) operates
The company’s general director, Le Manh the field, which is located in Block 15-1, with
Hung, said that reaching this year’s targets would a 50% stake. Its partners include Perenco with
require the group to improve its macro-eco- 23.25%, Korea National Oil Corp. (KNOC) with
nomic forecasts in order to respond quickly to 14.25%, SK Innovation with 9% and Geopetrol
market changes. with 3.5%.™

EAST ASIA

US ‘mulls sanctions’ on

Iranian oil sales to China

POLICY THE US is weighing new sanctions on Iran’s negotiations away from the Vienna format asso-
crude oil sales to China as a way to pres- ciated with, and backed by, Rouhani before strik-
sure Tehran to commit to reviving the 2015 ing any agreement. Whatever the reason for the
nuclear deal, sources familiar with the mat- delay, the US appears to be mulling alternative
ter told The Wall Street Journal (WSJ) on options to encourage Iran to stay at the negotiat-
July 19. ing table or up the cost of leaving it.
US negotiators continue to work with One option under consideration would
European and international partners in reduce Iran’s growing crude sales to China, the
Vienna, Austria in an attempt to revive the WSJ reported.
deal; otherwise known as the Joint Compre- “There is not much left to sanction in Iran’s
hensive Plan of Action (JCPOA), the agree- economy,” a US official told the newspaper.
ment is designed to ensure Iran’s nuclear “Iran’s oil sales to China is the prize.”
programme stays within the civilian realm Beijing is Tehran’s main oil client. In the plan
in exchange for the lifting of heavy sanctions under consideration, the US would take aim at
imposed on Tehran. Iran’s oil sales to China by targeting shipping net-
But with the incoming hardline Raisi works that help export an estimated one million
government set to replace the moderate barrels per day, officials told the WSJ.
Rouhani administration in Iran on August But the new plan would only go into effect if
5, the negotiations have stalled. Raisi offi- nuclear talks fail, those officials said.
cials may have delayed the process so that Then-US President Donald Trump
incoming president Ebrahim Raisi can win- exited the nuclear agreement with Iran in
dow dress the JCPOA with some specific May 2018, criticising it as being too lenient
concessions demanded by his team, prior to towards Tehran. Trump then reimposed
taking the credit for the deal relaunch. widespread and swinging sanctions meant
For instance, there are some local reports to pressure Iran into signing a new and wiser
in Iran indicating Raisi will want to shift nuclear and security deal.™

Week 29 22•July•2021 www. NEWSBASE .com P11