PetroVietnam Suspends Kompong Thom Operation

[geovalin]

Khmer Times/May Kunmakara

Low oil prices and internal management changes have forced PetroVietnam Exploration Production Corporation (PVEP), a member of the state-owned Vietnam Oil and Gas Group, to suspend its operations in Kompong Thom, a senior official with the Ministry of Mines and Energy (MME) said yesterday.

Meng Saktheara, Secretary of State of the MME, told Khmer Times that the ministry had agreed to the request from the company to shut down its operations on block XV. It had asked for a delay in January when it was at the drilling stage.

“The company asked the ministry for a postponement in drilling within this year due to the current sharp decline of global oil prices. And secondly, they have an internal issue with a change of management,” said Mr. Saktheara.

“We do understand their situation that’s why the ministry agreed to the suspension.”

Yesterday’s announcement occurred as the price of crude fell to $28 a barrel, its lowest in 12 years. Prices are falling on dwindling hopes that key producers will reach an agreement to freeze output when they meet this month to discuss a global supply glut.

After breaking above $40 in March on expectations for the Russia-Saudi Arabia-led talks, the commodity has tumbled in recent weeks

The April 17 Doha meeting aims to agree to cap output at January 2016 levels, but analysts say only a production cut can lead to a sustained recovery in prices.

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