Petrovietnam will step up exploration and production to increase the country's recoverable reserves of oil to 35 million-45 million tonnes a year under its 2011-2015 development plan, the government said in a statement.
The goal shows a significant boost from the group's targets for this year, with crude oil production to reach 15 million tonnes, unchanged from 2010, and natural gas output of 8.5 billion cubic metres.
The government approval for the higher production target means Petrovietnam will get more state support, including funding, for its efforts to raise output to ensure energy security for the country.
Crude oil is Vietnam's top cash earner, accounting for 8 percent of the Southeast Asian country's export revenue in the first seven months of 2011. Petrovietnam's revenues contributed a quarter to Vietnam's gross domestic product in 2010.
The government statement said Petrovietnam would raise its oil refining capacity to 16-17 million tonnes per year (321,000-341,000 bpd) to meet 50-60 percent of domestic demand for petrol and oil products.
Higher refining capacity would also help meet 60-70 percent of the demand for urea and 50-60 percent of the demand for raw material for petrochemical production, the statement said.
Vietnam's $2.2 billion, 130,500 bpd Dung Quat refinery, the country's first such facility, is seeking to expand to about 200,800 bpd by 2017 and will use Middle Eastern and possibly Venezuelan crude, a plant executive has said.
The combined output target for crude oil and gas was released after Petrovietnam made new oil finds and has increased output from existing blocks off Vietnam's southern coast.
Last week Vietsovpetro, a Petrovietnam venture with Russia's Zarubezhneft, said it found crude oil at a well near the Bach Ho field, Vietnam's largest offshore site, with a flow of more than 2,000 barrels per day (bpd), the second discovery in less than two months.
Commercial production at Gau Trang would start in the third quarter of 2012, the venture said.
Dai Hung oilfield output nearly tripled to 11,600 bpd from last Thursday as a new wellhead platform started pumping, versus 4,000 bpd earlier, Vietnam News Agency said, and the field would produce 18,000 bpd in near future.
Copyright Reuters, 2011