VIET NAM REPORTEDLY HIKING OFFSHORE OIL FLOW

Viet Nam has increased oil flow from its only producing South China Sea field to more than 60,000 b/d, Soviet sources report. If true, Viet Nam has substantially exceeded its 1990 target of 50,000 b/d, and production from Bach Ho (White Tiger) field has risen sharply since the first half of this year. The Moscow newspaper Trud said the joint Soviet-Vietnamese venture Vietsovpetro produced more than 2.5 million metric tons of crude during the first 10 months of 1990. That's an average

Dec. 24, 1990

3 min read

Viet Nam has increased oil flow from its only producing South China Sea field to more than 60,000 b/d, Soviet sources report.

If true, Viet Nam has substantially exceeded its 1990 target of 50,000 b/d, and production from Bach Ho (White Tiger) field has risen sharply since the first half of this year.

The Moscow newspaper Trud said the joint Soviet-Vietnamese venture Vietsovpetro produced more than 2.5 million metric tons of crude during the first 10 months of 1990. That's an average 60,033 b/d, compared with about 20,000 b/d during the first 6 months of the year.

A later report in the Moscow newspaper Pravda datelined Hanoi said Viet Nam had started exporting crude to the U.S.S.R. In the past, Viet Nam has imported most of its petroleum products from the Soviet Union, buying more than 37,000 b/d last year.

Vietnamese oil exports "to the U.S.S.R." apparently are not reaching the Soviet Union itself but are being delivered to third countries with which Moscow has contracts to provide crude.

Viet Nam has only one very small refinery producing just 800 b/d of products. Work is under way to increase the plant's refining capacity to 5,000 b/d.

The nation has no known onshore oil production, but it reportedly has several undeveloped South China Sea fields. The most recent discovery, near White Tiger field, is said to have tested about 300 b/d.

SOVEREIGNTY ISSUE

Protective of its oil resources in the South China Sea, Viet Nam recently warned China, Taiwan, Philippines, and Malaysia not to challenge its sovereignty over the Spratly Islands. These small islands, believed to be in a petroleum prone area, lie about 400 km southeast of the Vietnamese coast.

Hanoi's latest warning against intrusion by other nations into the Spratly area followed alleged overflights by Philippine military planes during maneuvers. Vietnamese officials said the Philippine government plans to improve an airstrip on one of the Spratly islands it already controls.

Despite the purported big hike in White Tiger oil production, Viet Nam is experiencing a severe shortage of petroleum products. Gasoline prices have soared since the Persian Gulf crisis began.

Imports of automobiles and motor scooters were banned during fourth quarter 1990. The ban is slated to continue in 1991, with citizens advised to use "other forms of transportation."

Viet Nam had 16,000 workers in Iraq in November, when they began returning home. About 7,800 were expected to fly home by Jan. 1.

Loss of wages by Vietnamese workers in Iraq has further aggravated Viet Nam's hard currency shortage. Hanoi says the nation needs $250 million/year of foreign capital to achieve its targets for economic growth.

Viet Nam hopes soon to normalize relations with the U.S. Diplomatic ties were severed in 1975.