Crude oil, the country’s foremost foreign exchange earner, was likely to make up 21% of the country’s total export turnover this year, said the Ministry of Trade.
The output of 17.5 million tons was 5% lower than targets, but export values exceeded targets on the back of rising world market prices.
Last year, the oil sector exported 18 million tons of crude worth nearly 7.4bio US$ mainly to China, Singapore, Japan, UK and US. Its crude oil production decreased 7.7% to roughly 18.5 million tons in the year.
Under a plan proposed by the Ministry of Planning and Investment, Vietnam is set to lower crude oil exports between 2006 and 2010 so as to ensure sufficient supply of the product for domestic industries. Accordingly, the country's crude oil export will decline to 18.5 million tons in 2006 and 15.6 million tons in 2010.
To reduce reliance on petroleum imports, Vietnam is investing 2.5bio US$ into constructing its first oil refinery, Dung Quat in the central Quang Ngai Province with annual processing capacity of 6.5 million tons.
The decade-delayed mega project is scheduled to become operational in late 2008 or early 2009, meeting about 40% of the domestic demand for petroleum products. Another two oil refineries are scheduled to come productive in 2009.
Energy experts forecast that Vietnam would turn into a net importer of crude oil by 2015, when all three refineries become operational and demand for crude oil rises.Vietnam's crude oil output may increase by almost 80 percent over the next few years, demand for refined products is expected to rise strongly as the country's economy expands.
Source: Thanh Nien
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