Skip to Content

Monthly Archives: October 2021

Petrovietnam consults oil and gas contractors about Draft Petroleum Law (amendment)

On 4th October, in Hanoi, Vietnam National Oil and Gas Group (Petrovietnam) held a workshop with oil and gas contractors and partners to exchange and contribute ideas for finalization of the Draft Petroleum Law (amendment).

Vice President Le Ngoc Son, leader of the Petroleum Law Project Drafting Team (Drafting Team) of Petrovietnam chaired the workshop. Attending the workshop were representatives of the Group’s Divisions, members of the Drafting Team, heads of member units, representatives of oil and gas contractors and partners at joint venture companies. 

At the workshop, representatives of the Drafting Team presented the Draft Petroleum Law (amendment) with focus on important policy groups in the Draft such as Oil and gas contracts; Order and procedures for approval when deploying oil and gas activities and projects; Accounting, auditing and settlement work; Preferential policies in oil and gas activities; Rights and obligations of oil and gas contractors…New amendments, highlights in the Draft Petroleum Law (amendment) to collect comments for completion. 

Overview of the workshop

Representatives of units, oil and gas contractors and joint ventures exchanged, discussed and raised questions about points in the Draft Petroleum Law (amendment) as well as gave opinions on the unreasonable contents that need to be supplemented to complete, create more favorable legal basis and corridor for investors, and contribute to improving the investment environment in the oil and gas sector. 

Representatives of partners, oil and gas contractors attended the workshop

Concluding the workshop, Vice President Le Ngoc Son on behalf of the Drafting Team thanked and acknowledged the comments of the partners, oil and gas contractors on the Draft Petroleum Law (amendment). Mr. Le Ngoc Son emphasized the current Petroleum Law, established in 1993, has been amended many times. Over the past time, the oil and gas industry has undergone comprehensive change, many provisions in the current Petroleum Law have been no longer appropriate or consistent, overlapping with other legal provisions. It has been causing many difficulties for the investment in the exploration activities as well as Petrovietnam’s activities. The amendment and supplementation of the Petroleum Law aims to perfect the petroleum legal system and the subjects of regulation/applicability of this Law are not only Petrovietnam but also all individuals, organizations, investors, contractors participating in the oil and gas activities in the territory of Vietnam. 

Petrovietnam Vice President Le Ngoc Son spoke at the workshop

Through the workshop, Vice President Le Ngoc Son wished to continue receiving comments and exchanges from joint venture companies, partners, oil and gas contractors to quickly update and complete the Draft Petroleum Law (amendment), submit to the Ministry of Industry and Trade and the Government according to the schedule for the National Assembly to consider and approve. The Group’s leader also hoped the Petroleum Law (amendment) would create favorable conditions and motivation for investors to participate in the oil and gas projects in Vietnam. 


0 0 Continue Reading →

Petrovietnam: difficulties not only from the Covid-19 epidemic

In the first 8 months of 2021, despite being heavily affected by the Covid-19 pandemic, the Vietnam Oil and Gas Group (Petrovietnam) basically completed the production and business plan targets set out. In particular, information to the press, the Ministry of Finance said: “While domestic revenues, revenue from import and export reached a low level compared to the estimate, budget revenue from crude oil in 8 months still recorded results. positive, reaching 25.7 trillion dong, equaling 111% of the estimate, up 0.9% over the same period”.

Facing difficulties

Right from the fourth outbreak of Covid-19 in the country from April 29, 2021, the Vietnam Oil and Gas Group (Petrovietnam) has been very aware of the seriousness of the extremely dangerous new Delta variant. . The negative impact of the Covid-19 pandemic has led many provinces and cities to apply social distancing measures throughout the region, including many large cities and provinces such as Ho Chi Minh City, Hanoi, and other cities. Southeast and Southwest provinces – where many works, projects, oil and gas plants operate; Many localities have tightened epidemic prevention measures such as restricting travel, suspending non-essential activities, etc., which have severely and comprehensively affected Petrovietnam’s production, business and investment activities in all five areas of operation. main, in which the fields of: petrochemical refining and distribution of petroleum products; gas industry; electrical industry; oil and gas services are directly affected,

The supply chain of raw materials has been interrupted, broken, and the circulation of goods, products, raw materials and materials of the units has faced difficulties due to the fact that human resources and means of transport must comply with strict epidemic prevention measures. such as PCR testing, isolation before and after moving out of provinces and cities, etc.

Check the control system

The demand for gas, electricity, petroleum and petrochemical products declined sharply due to social distancing and traffic tightening; High product inventories lead to oil refineries having to reduce capacity, the risk of stopping production in the near future is great, specifically: dry gas supply and consumption in the first 8 months of 2021 decreased by 15 % over the same period in 2020; trading in petroleum and chemical products, fertilizers all decreased sharply over the same period; Petroleum inventories of Dung Quat and Nghi Son refineries have increased, leading to the need to reduce capacity to a minimum and facing the risk of having to stop operating.

The organization of long-term working at sea and abroad (Malaysia, Brunei, Quarta…); The entry of foreign experts into oil and gas plants and projects faces many difficulties, affecting the implementation progress of key projects such as Song Hau 1, Thai Binh 2, etc., affecting the overall maintenance schedule. repair at some factories and works at member units.

Difficulties from the epidemic not only affect the Group’s business results, but also negatively affect the state budget revenue and localities with Oil and Gas activities. Recently, facing the difficult situation of Binh Son Refinery and Petrochemical Company (BSR), the People’s Committee of Quang Ngai Province had to send a document to the Prime Minister to consider prioritizing the use of petroleum sources from oil refineries in the future. water to ensure the balance of market supply and demand, to support stable production and consumption of petroleum products.

Not only difficulties from the Covid-19 epidemic, Petrovietnam also encountered many difficulties due to the lack of timely adjustment of mechanisms and policies such as the Law on Petroleum, investment mechanism for the E&P sector, etc. Currently, Petrovietnam There are 48 proposed work groups that need to be removed by the Government and relevant ministries and agencies. Along with ensuring the health and safety of employees, maintaining stable production and business activities, Petrovietnam is also under heavy pressure for newly assigned targets and tasks.

Face the challenge

In the face of many difficulties, on the basis of the consensus of the whole political system, Petrovietnam General Director Le Manh Hung held many thematic meetings to update the situation of the Covid-19 epidemic. changes in the market affect the Group’s operations, strictly requiring the strict implementation of measures to prevent and control the Covid-19 epidemic under the direction of the Party, State, Government, Prime Minister and the Steering Committee. National Steering Committee for Covid-19 disease prevention and control, local steering committees; issued 53 notices, 43 directives, directing documents to member units by field, block by value chain. With the goal of “Ensuring the health of workers, production and business activities continue to maintain stability, safety, and smooth consumption of goods and products”.

Ensuring health and safety for employees, focusing on: (i) continuing to seriously implement solutions to prevent and control the Covid-19 epidemic to ensure higher safety for workers and business with general requirements; (ii) Access to vaccine sources and organize safe vaccination, ensuring 2 doses/person for all employees in the Group; (iii) Prepare safety equipment for epidemic prevention and control at the Group and its units to promptly support the units when the need arises; (iv) Timely support in material, spiritual, and safe conditions for employees when implementing “three-on-the-spot” solutions as well as extending shift change time… to encourage employees’ morale.

Working on the rig

Ensuring production, business, and investment to maintain stability, safety, and continuity: focusing on: (i) Organizing the implementation of the motto “three places”, “two destinations, one road”. ” for employees directly working at oil and gas factories, projects and works. (ii) Proactively apply scenarios of occurrence of F0 in the production area (which have been built) to come up with an appropriate response plan; (iii) Sharing and coordinating resources, human and material resources (storage) to reduce inventory pressure among units in Petrovietnam – directed PVOIL, BSR, PVNDB, PVTRANS to implement, in addition sent a document to the Ministry of National Defense to support and arrange warehouses to allow Petrovietnam units to store petrol and oil warehouses; (iv) Develop operating scenarios for production and business activities throughout the Group to ensure flexibility and compliance with the direction and administration of the Government and the Prime Minister.

Ensure circulation of raw materials, production materials and products in order to maintain smooth consumption of goods and products, contributing to market stability; in which focus on closely following market developments, reviewing inventory data, warehouse rental needs of units in the context that the demand for products is seriously decreasing.

Ensure progress of investment projects; in which focus on implementation: (i) Speeding up the progress of investment projects, especially projects completed in 2021, 2022; thorough decentralization in investment management, coupled with strengthening supervision and inspection of implementation; (ii) Complete procedures related to investment in E&P sector to submit to competent authorities for consideration, approval/approval as a basis for implementation; focus on E&P projects in the traditional area.

Protect your results!

On the basis of implementing the main targets in the first 8 months of 2021, in the remaining time of 2021, the Group strives to maintain the achieved results, continuing to focus on 5 groups of solutions which are:

Representatives/Heads of units update and forecast disease developments, prepare resources, develop plans, and organize timely implementation of the 2nd dose vaccination for all employees. Coporation, group.

Ensuring production and business – investment to maintain stability, safety, and continuity. Building operation models at factories and construction sites suitable for each stage of disease control to ensure initiative in production and business activities.

Reviewing the implementation of investment and portfolio management at the Group and its subsidiaries to ensure the progress of projects: (i) Focus on putting Song Hau 1 project into operation at the beginning of the month 11/2021; (ii) Soon put new projects (BK 19, BK 18A) into operation to increase oil production in 2021…

On the basis of the forecast of the macro-economy, the market, develop the business plan in 2022 at the Group and its member units. Review and implement preparations for production and business to anticipate economic recovery, update the list of key products, alternative products and market development plans to adapt to changes in demand. demand as well as the situation of energy transition, implemented in the fourth quarter of 2021.

Implement synchronously digital transformation and application of digital platforms in all units in the Group, (focusing on unified implementation of ERP system); complete the digitization of all operations, processes and management systems in 2021.

Outdoor maintenance

Implement synchronously digital transformation and application of digital platforms in all units in the Group, (focusing on unified implementation of ERP system); complete the digitization of all operations, processes and management systems in 2021.

In the current context, the market plays a “vital” role for the existence and development of enterprises. As an enterprise holding an important position in the country’s economy, Petrovietnam has proactively seized opportunities, continued to promote “volatility management”, regularly updated data, market forecasts, provide the optimal scenario, ensuring the efficiency of the Group’s activities. In addition, Petrovietnam continues to develop solutions and plans to consume oil and gas products, promote exports in parallel with the development, consolidation and control of the market, creating a basis for development and capture. opportunities to consume products when the epidemic is basically under control, leading to an increase in market demand in the next time. In particular, with the close attention and direction of the Party, the Government, all levels, branches and localities./.


0 0 Continue Reading →

Petrovietnam actively and flexibly adapts to new normal state

On 4th October, Petrovietnam President and CEO Le Manh Hung chaired the 10th regular business and production management meeting in 2021 online with heads of units throughout the Group to “flexibly adapt” to new normal state.
Online bridge points

Attending the meeting were Mr. Hoang Quoc Vuong – Secretary of the Party Committee, Chairman of the Board of Directors of the Group; members of the Standing Party Committee, members of the Board of Directors, Vice President, Heads of Divisions/ Administration Office of the Group and heads of member units under the Group. 

In September, the Group’s production and business activities continued to face many negative impacts due to the complicated situation of the Covid-19 epidemic, the disruption of the supply chain for petroleum products, especially the widespread social distancing in many localities. In that context, Petrovietnam implemented a series of coping measures, forecast, fluctuation magement, flexibility in management, and promoted connection of links in the Group’s value chain vertically and horizontally has maximized the value of each unit and expanded the market…helped the Group respond promptly to difficulties, maintain the pace of production and business.

Successfully installed the BK-19

With the efforts of the whole political system, in September and the first 9 months of 2021, Petrovietnam has achieved many positive results. Specifically, crude oil production in September exceeded 15.4% of the September plan, reached 8.20 million tons in the first 9 months, and exceeded 13.0% of the 9-month plan. Total revenue of the Group in September 2021 was estimated at 44.9 trillion dong, exceeded 11% of the September plan, accummulated amount in the first 9 months of 2021 was 437.8 trillion dong, exceeded 16% of the 9-month plan. Petrovietnam has made an important contribution to the State budget by paying 65.9 trillion dong in 9 months, exceeded 5.0% of the year plan and exceeded 17% compared to the same period of 2020. In the context that many large enterprises faced difficulties and losses, the important contributions of Petrovietnam represented the great efforts of the Group’s leaders, its member units and nearly 60,000 employees.  

The work of management was implemented closely with actual developments, promptly adapted to market fluctuations, and strengthened close coordination among units from upstream, midstream to downstream. It ensured optimal cash flow management at the units and did not disrupt production and supply chains. The storage of products was controlled with flexibility. Management made the most of the coordination among units in the value chain to ensure the common interests of Petrovietnam and the State.  

Oil and gas workers ensure production safety during the COVID-19 epidemic

There have been many positive changes in the investment management. In the first 9 months of the year, Su Tu Trang (White Lion) field phase 2 has been completed and put into operation as planned. Field development projects such as BK-18A, BK-19 have been actively implemented according to the schedule (it is expected to put the BK-19 project into operation at the end of October 2021 and the BK-18A project at the end of November 2021); continued to focus all resources to soon put Song Hau 1 and Thai Binh 2 power projects into operation, in which it is expected to put Unit 1 of Song Hau 1 thermal power plant project into commercial operation in early November 2021.

Besides production and business activities, Petrovietnam has actively participated in social security activities, supported the prevention of Covid-19 epidemic. From the beginning of 2021, the whole Group has seriously implemented solutions to prevent and control the Covid-19 epidemic; effectively implemented the “three on-site activities” production and operation model with buffer zones and connection areas. In particular, the Group has quickly and promptly implemented the strategy of vaccination combined with health care for employees. As of 30th September 2021, the whole Group has contributed 775.8 billion dong to the Covid-19 prevention and control, including 554.9 billion dong to the Vaccine Fund. Vaccination work throughout the Group has been paid special attention and urgently implemented. Up to now, most of the employees in the Group have been vaccinated at least 1 dose, with priority given to those working directly at the projects, factories…

In the first 9 months of 2021, thrift practice and wastefullness combat has reached 2,209.6 billion dong, equivalent to 80.9% of the year plan. Digital transformation has been actively implemented. Petroleum security and safety, environmental safety, labor safety, fire and explosion prevention on oil and gas works have been closely monitored and strictly implemented. Communication and corporate culture have been implemented synchronously, extensively with positive results; The Group’s brand and reputation have been increasingly enhanced, and Petrovietnam’s image has made a good impression in the public. Other tasks such as training, management and salary policy have also been focused and implemented according to the schedule. 

On 9th September, Fitch Ratings, the world’s leading credit rating agency, confirmed Petrovietnam’s independent credit rating at BB+, issuer default rating (IDR) at BB with “Positive outlook”; Petrovietnam’s unsecured priority debt rating at BB. It is the third year in a row that Fitch Ratings has rated Petrovietnam’s credit rating at BB+. The positive rating from Fitch Ratings shows the recognition of Petrovietnam’s achievements over the years. 

On the basis of analyzing and evaluating the results of production and business activities in September and 9 months of 2021, the Board of Directors and heads of Divisions in each field in charge discussed, resolved difficulties and gave solutions to supporting member units in production, business and investment.

Overview of the meeting room of the Board of Directors

After listening to the opinions, work handling and solving by the leaders of the units, Divisions and the Vice Presidents of the Group, at the same time receiving the direction of Mr. Hoang Quoc Vuong – Secretary of the Party Committee, Chairman of the Board of Directors of the Group, President and CEO Le Manh Hung acknowledged and highly appreciated the results achieved in the first 9 months of 2021, the development orientation after the epidemic control changed from “Zero Covid” to “adapting actively, flexibly and safely to the epidemic”; noted the Group and other units to update the assessment of the situation, ready to “flexibly adapt” to the developments of the Covid-19 epidemic, thereby take solutions to overcome difficulties, expand the market, promote product consumption, seize the opportunity to recover growth. President and CEO Le Manh Hung suggested the units continue to make efforts, strive to overcome difficulties, maintain stable production and business activities, ensure safety for employees; assigned tasks for the Group’s Vice Presidents, Heads of Divisions, and leaders of member units to quickly review and handle the tasks, conclusions and instructions of the Group’s leaders on schedule. Continue to promote synchronous implementation of digital transformation throughout the Group.

Petrovietnam President and CEO Le Manh Hung concluded the meeting

The Group’s leaders also suggested the units collect opinions from the officials, employees, units, partners, and contractors involved in the Draft Petroleum Law amendment and emphasized it was the important content and basis to create a driving force for Petrovietnam’s sustainable development in the coming years./.

0 0 Continue Reading →

PVTrans Vung Tau received PVT Dawn in Vung Tau

Thang Long Maritime is pleased to announce the completion of a purchase a 13,000 DWT chemical & oil carrier.

On March 1, 2021, PVTrans Vung Tau (Thang Long Maritime) – a subsidiary of PetroVietnam Transportation Corporation (PVTrans) has completed the reception of the vessel PVT DAWN.

PVT DAWN was built in 2009 in Korea. This is an oil/chemical tanker with a gross tonnage of 13,094 MT. The vessel has good and modern technical conditions, meeting the strict standards of the maritime industry and major oil and gas customers in the world.

Oh PVT Dawn.
PVT Dawn

The receipt of PVT DAWN is part of PVTrans’ overall plan on fleet rejuvenation strategy, anticipating the recovery of the shipping market, which is expected at the end of 2021 and early 2022 after the COVID-19 pandemic is brought under control on over the world.

With modern technical characteristics, PVT DAWN will be operated in the international market. This event confirms PVTrans’s position in meeting the strict standards of large terminals and Oil Majors as well as its ability to gradually improve its specialization in ship management and operation.

0 0 Continue Reading →

TLM’s Social Responsibility

In response to Party General Secretary Nguyen Phu Trong’s appeal for greater national solidarity to fight COVID-19, Thang Long Maritime has supported the anti-epidemic front line in pandemic control.

Recently, Thang Long Maritime has contributed medical equipment and supplies to many hospitals such as: 1A Ly Thuong Kiet, 5G Field Hospital, 12 Field Hospital… to efforts to the prevention and control of the pandemic and the protection and care for people’s health.

These gestures all come from the heart’s command, contributing to the fight against the pandemic in Vietnam, and showing the love for the motherland, the spirit of mutual affection and the tradition of good solidarity of the Vietnamese people.

At Thang Long Maritime, we believe the Vietnamese people’s will and actions would result in a victory in the fight, contributing to common global efforts for a world of safety, peace, friendship, cooperation, and prosperity./.

0 0 Continue Reading →