Vietnam seeks international oil and gas cooperation

Vietnam's oil and gas industry has a lot of opportunity to collaborate internationally now that Prime Minister Pham Minh Chinh has returned from Saudi Arabia for the ASEAN-GCC Summit. This will assist the industry grow in the future.

According to insiders, Vietnam's petroleum business is facing numerous hurdles due to the unanticipated changes in crude oil prices and the strong trend of energy transition.

Vietnam is remains largely dependent on the world market for petroleum products. The government has been putting different measures into place to lessen this reliance in order to achieve the development of renewable energy in the future.

In the midst of uncertain geopolitical dangers and worldwide financial volatility, increasing collaboration with energy-rich nations, diversifying supply sources, and moving toward green energy consumption will be practical ways to guarantee price stability locally.

The oil and gas sector should be able to become supply-self-sufficient through international cooperation.

Vietnam has felt the effects of changes in the world market for crude oil. Notably, the nation's imports of gasoline and crude oil totaled 8.03 million and 7.81 million tonnes, respectively, indicating growth rates of 23.1% and 8.3%.

However, compared to the same period last year, the cumulative crude oil exports in the first nine months of 2023 were just 2.03 million tons, a 14.9% drop. Gasoline exports overall decreased by 9.1% to 1.66 million tons.

The World Bank projects that Vietnam's GDP will grow by 5.4% and 6%, respectively, in 2024 and 2025. As a result, the need for energy in general and crude oil in particular is growing along with the nation's economy.

The government is fostering sustainable economic growth and the green energy sector, as well as stepping up collaboration with international partners, in order to guarantee energy security and meet demand for consumption.

During his October visit to Saudi Arabia, PM Pham Minh Chinh met with Crown Prince and Prime Minister Mohammed bin Salman. The Vietnamese leader encouraged Saudi Aramco, one of the world's largest companies by market capitalization, to take a look at investing in Vietnam's oil and gas sector.

The visit confirmed that Saudi Arabia and Vietnam could work together bilaterally in a number of areas, most notably the oil and gas industry.

Saudi Aramco representatives also stated that they would like to contribute to the construction of an oil refinery in Vietnam.

Should Aramco's ambitions come to pass, the country of Southeast Asia would welcome a number of high-tech and high-value investment projects.

To further reduce pollutant emissions, the company is concentrating on making investments in cutting-edge low-carbon emission technology. This is in line with the government of Vietnam's long-term objective of creating renewable energy projects.

Companies involved in the extraction and production of oil and gas should find opportunities to enhance and modernize their infrastructure and technologies as a result of this relationship. Additionally, it will guarantee local supply, energy security, and sustained economic growth in light of the numerous dangers associated with the global market.

Source: Vietnamplus