Petrovietnam meeting oil and gas contractors in 2023

Abstract

On March 9, 2023, in Ho Chi Minh City, Vietnam Oil and Gas Group (Petrovietnam) held a meeting with contractors, operators and partners in the oil and gas field operating in Vietnam.

Regarding business results in the past 3 years, Petrovietnam President & CEO Le Manh Hung said: In 2020, Petrovietnam “spectacularly overcame challenges” to successfully optimize values, beating the “double crisis” impact and becoming one of the rare bright spots in the national economy picture, recording a profit of approximately USD 900 million. Identifying 2021 as the “year of growth recovery”, Petrovietnam took advantage of every opportunity to recover the growth in all areas of its operation, bringing the profit increased by 2.6 times compared to 2020, about USD 2.2 billion. In 2022, Petrovietnam has galvanized all its resources and favorable market conditions to create unprecedented success with many records established.

Petrovietnam has really transformed to become the leading economic group in Vietnam and a reputable NOC in the international arena. In energy security, it plays a spinal role by meeting more than 75% of the domestic petroleum products demand and being the 2nd largest power provider in Vietnam. In food security, fertilizers manufactured and supplied by Petrovietnam accounted for more than 70% urea needs domestically. In economic security, Petrovietnam’s total revenue accounted for approximately 9.8% GDP and contributed about 9.6% to the total national income. In national defense and security, by its offshore operation, Petrovietnam significantly participates in the protection of national sovereignty at sea; and as per social responsibility, Petrovietnam contributed more than 500 billion VND yearly for national social welfare.

Petrovietnam continues to strongly maintain a healthy financial status, its excellence in implementing the objectives, preserving and developing its assets and liquidity, which can be proved by: (i) Total assets as of 31 December 2022 reached over USD 41 billion, increasing 12% compared to the pre-pandemic period; (ii) Total revenue of 2022 was recorded at USD 39.6 billion, equivalent to 26% growth compared to pre-pandemic.

Petrovietnam, with the vision of being a pioneer in green energy and gradually reducing carbon emission, contributing to the successful implementation of the Government’s commitment at COP26, has built a development strategy to adapt to the global energy transition trend. This is also an opportunity for Petrovietnam to once again affirm its desire to conquer new heights with strong growth targets.

With strong financial resources, leading in science and technology development, and reputable corporate governance at regional level, Petrovietnam has set clear goals for the future and is determined to achieve them successfully. During that journey, Petrovietnam urges all contractors, operators and partners to continue their efforts, work together to overcome all difficulties and challenges to build a sustainable and dynamic Petrovietnam, capable of adapting with the turbulent world to reach new heights.

Accordingly, Petrovietnam President & CEO sincerely requested that the contractors, operators and partners to work closely with Petrovietnam and its units to: successfully implement the approved the 2023 Work Program Plan and Budget; synchronously conduct solutions to complete the exploration plan, increasing oil and gas reserves in 2023 to 8 - 16 million tons of oil equivalent; actively research for optimally-adjusted exploration plans in the next period; monitor, maintain and operate safely and effectively all the oil and gas assets; closely work together to resolve timely any difficulties and problems during the execution to ensure the timeliness and efficiency.

Concurrently, Petrovietnam aims to constantly improve the existing efficient value chains and establish new ones to generate added values, creating a sustainable Petrovietnam ecosystem. The factors that might impact Petrovietnam’s core business products and services, as well as their competitiveness against new energy products are assessed to be used as the basis for developing appropriate strategies and innovations required for short-/medium-/long-term. Finally, it is a must to concentrate on applying technology solutions, speed up digital transformation, develop corporate culture that embraces digital culture to promote innovation, change management thinking, thereby improving product value and labor productivity throughout Petrovietnam.

During the meeting, Petrovietnam awarded Certificates of Merit to 12 collectives and 12 individuals of contractors, operators and partners with excellent achievements in operating and managing oil and gas activities in the period of 2020 – 2022.

On behalf of the honored oil and gas contractors, Mr. Do Ngoc Thanh - JVPC Deputy General Director highly appreciated the efforts of the Vietnam’s Government and Petrovietnam in creating a more favourable business environment and platform for contractors through the recently promulgated Petroleum Law 2022, bringing many expectations for the development of the oil and gas industry in the future. JVPC is committed to maintaining safe and efficient operations at Block 15-2 as well as making efforts to expand business in the energy sector in Vietnam with the close cooperation of Petrovietnam.