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Monthly Archives: December 2021

Thăng Long Maritime reviews performance in 2021 and chalk out tasks in 2022

Thang Long Maritime convened a conference on December 21 to review its performance in 2021 and chalk out tasks for the next year. In 2021, thanks to PVTrans leaders’ direction and support from PVTrans’ subsidiaries along with the solidarity, creativity and efforts of the Board of Directors and all employees of the company, Thang Long Maritime has over-fulfilled many targets of assigned tasks, making important contribution to PVTrans amid the unprecedented difficulty of Covid-19 pandemic.

PVT Dawn

Attending and directing the meeting were Mr. Pham Viet Anh – Secretary of the Party Committee, Chairman of the Board of Directors of PetroVietnam Transportation Corporation; Mr. Nguyen Duyen Hieu, member of the Executive Party Committee, Chief Executive Officer, members of the Board of Directors, Board of Management, Heads of Departments/ Administration Office of the Corporation and leaders of member units of the Corporation.

The event was chaired by Mr. Nguyen Viet Long – Chairman of the Board of Directors, Mr. Phan Cong, CEO and Mrs. Pham Thi Thu Nga, Chairwoman of the Company’s Union.

Board of Directors Chairman Nguyen Viet Long

In 2021, the global economic recovery is not yet in sign due to the impact of the Covid-19 pandemic, besides increasing inflation and rising prices of raw materials. Although sea freight is recovering, the increased demand for iron ore has led to a large number of ships to be demolished, and the shortage of ships due to the absence of new ships has led to a sharp increase in ship prices, making it difficult to invest and develop the company’s fleet.

Faced with that situation, Thang Long Maritime proactively updated and assessed the market situation, reassessed customers, balanced cash flow, thereby developing specific operating plans and scenarios to respond promptly. In March 2021, Thang Long Maritime has completed the investment project of a 13,000 DWT vessel (PVT Dawn) and put it into operation on the international market.

In his remarks at the event, CEO Phan Cong said that with the efforts of the whole Company, the drastic efforts of the Board of Directors have brought many positive results in 2021. Accordingly, Thang Long Maritime has exceeded revenue and profit targets, in which revenue reached 220 billion VND, equivalent to 100% of the plan, pre-tax profit reached 9.5 billion VND, equivalent to 237% of the plan. State budget contribution is estimated at 1.9 billion VND, equivalent to 211 % of the 2021’s plan.

CEO Phan Cong at the conference

Thang Long Maritime has ensured the democratic rights of employees in the workplace, promoted building a corporate culture associated with studying and following Ho Chi Minh’s ideology and moral example in 2021. At the same time, the Company regularly pays attention to the life’s condition of its employees, ensuring income for employees in the current difficult situation.

Spearking at the event, Chairwomen of the Company’s Trade Union Pham Thi Thu Nga has reported on trade union activities in 2021 and key tasks in 2022. On this occasion, Thang Long Maritime also honored collectives and individuals with outstanding achievements in 2021.

Chairwomen of the Company’s Trade Union

Deploying missions for 2022, Thang Long Maritime will continue to improve the efficiency in management and administration, ensuring effective business, preserving and developing capital; organizing effective and safe management, operation of available ships; implementing urgent measures in the epidemic prevention and controlling to maintain continuous business activities while ensuring the health and safety of employees; actively disseminating to all employees about upcoming difficulties and challenges, so that they could join hands and make efforts to help Thang Long Maritime overcome all difficulties and accelerate development.

PVTrans’ Board of Management honor TLM’s outstanding staffs

On behalf of the leaders of PVTrans Corporation, Mr. Nguyen Duyen Hieu – Member of the Executive Committee of the Party Committee, the Corporation CEO has praised and acknowledged the achievements of Thang Long Maritime in this difficult year 2021. At the same time, he also thanked and appreciated the efforts of the Board of Directors and staffs of Thang Long Maritime. Thang Long Maritime has made a very important contribution to the overall achievement of the Corporation. The Corporation’s leaders are very sympathetic to the difficulties of Thang Long Maritime in general and the difficulties of employees in particular during the Covid-19 pandemic. The Corporation CEO believes that, with the effective management, efforts of leaders and employees, Thang Long Maritime will continue to achieve success in 2022 and develop sustainably.

PVTrans CEO Nguyen Duyen Hieu delivers a keynote speech at the conference

In 2022, in the context of the “new normal” full of difficulties and challenges, Thang Long Maritime will continue to promote fleet investment, organize efficient operations of the fleet, ensure efficient and safe business along with capital development; closely follow the assigned tasks; strictly control the financial situation, manage cash flow to ensure stability; focus on risk management and measures to minimize possible losses./.

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PVN President & CEO opens up potential for cooperation and development of oil & gas value chain

From 15th to 19th December, on the occasion of the visit to India by National Assembly Chairman Vuong Dinh Hue, a high-level delegation of Vietnam National Oil and Gas Group (Petrovietnam) led by President and CEO Le Manh Hung had an important series of meetings and working sessions with Indian partners in order to fully promote and open up the potential for cooperation and development of the oil and gas value chain, raise the relationship between Petrovietnam and Indian partners to a new height.

On 16th December 2021, Petrovietnam President and CEO Le Manh Hung had a meeting with Mr. Rajesh Kamath – CEO of Thyssenkrupp Group, India branch (Thyssenkrupp Industrial Solutions – TKIS) to evaluate the cooperation results between the two groups, at the same time discuss opportunities to expand cooperation between the two groups in the future. 

Overview of the working session between Petrovietnam and the National Oil and Gas Group of India

At the meeting, the two sides listened to the report of Mr. Le Cu Tan – General Director of Petrovietnam Fertilizer and Chemicals Corporation (PVFCCo) on the construction project of the first chemical-tech NPK fertilizer plant in Vietnam using European technology in which Thyssenkrupp as the main contractor in the TkIS – PTSC joint venture has successfully completed the EPC package, put the plant into stable operation since August 2018, reached the capacity as design and has started to turn a profit in 2021. During the construction process, Mr. Le Cu Tan highly appreciated the cooperation of the joint venture in which Thyssenkrupp played the main role, although there has remained small points to be agreed so far, the two sides would make every effort to complete project settlement soon.  

President and CEO gave a souvenir to the CEO of Thyssenkrupp Industrial Solutions

Petrovietnam President and CEO Le Manh Hung praised the NPK project implementation parties for bringing good results to PVFFCo’s NPK production and business, and suggested that the parties agree and complete the final settlement in Quarter I/2022.

Regarding the expansion of cooperation and development relationship between the two groups, Petrovietnam President and CEO gave a brief introduction about the main areas of activities of Petrovietnam as well as some plans for the coming time, especially in the areas of upgrading oil refining products, petrochemical development, diversifying fertilizer, chemical, fiber products and energy transfer. Thyssenkrupp has had extensive experience in these areas and they are potential for cooperation development between the two sides. 

Agreeing with the point of view of Petrovietnam President and CEO, TkIS also shared the Group’s main areas of activities and capacity profile, especially in the areas of refining technology, petrochemical, fertilizer, fiber, green energy with the trend leading projects in both scale and technology around the world; ranging from consulting, project management, design, construction and installation, operation…

After exchanging information, the two sides agreed that there were many opportunities to be exploited and developed to bring economic benefits to the two groups. In order to quickly deploy research cooperation to build opportunities, Petrovietnam President and CEO Le Manh Hung suggested the two sides set up a joint working group to realize the wish. Mr. Rajesh Kamath thanked Petrovietnam President and CEO for the suggestion and looked forward to the cooperation soon. 

On 17th December 2021, Petrovietnam President and CEO Le Manh Hung had a meeting directly with Mr. Alok Kumar Gupta, the General Director of the Oil and Natural Gas Corporation of India (ONGC). In an open and friendly atmosphere, the two sides discussed ONGC’s activities in the projects in which ONGC was directly operating or participating in financial investments.

President and CEO Le Manh Hung discussed work with Mr. AK Gupta, General Director of ONGC

Petrovietnam President and CEO Le Manh Hung emphasized ONGC’s role and early presence in the oil and gas activities in Vietnam as well as its important contributions to the Vietnamese economy in general and the development of Petrovietnam in particular. President and CEO Le Manh Hung affirmed that ONGC was an important partner and Petrovietnam, both as a representative of the host country and as an investment partner of ONGC, always accompanied and supported ONGC to the maximum in maintaining and expanding the area of activities on the continental shelf, the exclusive economic zone of Vietnam. 

President and CEO Le Manh Hung proposed that in the coming time ONGC strongly promote oil and gas activities at the blocks where ONGC participated, fulfill work commitments on the basis of signed Oil and Gas Contracts. He also introduced a number of potential Open Contract Blocks for ONGC to consider participating in and expanding the area of activities. 

On behalf of ONGC, Mr. AK Gupta thanked President and CEO Le Manh Hung for the attention to the country and the people of India; He affirmed that ONGC’s investment activities in Vietnam have been bringing great benefits to ONGC. Therefore, ONGC always considered Vietnam as a reliable and potential market. ONGC wanted to continue maintaining its presence in Vietnam and was very grateful for Petrovietnam’s appreciation as well as the introduction of the Open Blocks so that ONGC had the opportunity to expand its area of activities. ONGC undertook to soon complete the work committed in the signed Oil and Gas Contracts and appoint a group of experts to exchange directly, specifically with Petrovietnam to study information, assess the potential of oil and gas in the open blocks. Mr. Gupta emphasized that ONGC desperately needed Petrovietnam’s support in the coming time to help ONGC fulfill the goals of maintaining its presence and developing investment in Vietnam. 

Petrovietnam President and CEO gave souvenir to General Director of ONGC 

On 17th December, right before the Vietnam – India Business Forum, Petrovietnam President and CEO Le Manh Hung had a meeting and exchanged work with 02 senior leaders of Essar Group, i.e. Mr. Ravi Ruia – President and Mr. Prashant Ruia – CEO at Leela Palace Hotel International Convention Center, New Delhi. 

Mr. Prashant Ruia, CEO of Essar Group introduced an overview of Essar Group

As introduced to Petrovietnam President and CEO Le Manh Hung by Mr. Prashant Ruia, Essar is a multi-industry family group with an estimated market value of US$15 billion and an annual profit of about US$2.2 billion. The main areas of activities are oil and gas, including oil and gas production, petrochemical technology, liquefied petroleum gas, distribution of liquefied petroleum gas; mining, metallurgy; technology; infrastructure development…

Specifically about activities in Vietnam, Mr. Ravi Ruia – President of Essar shared that he was very proud to be the Petroleum Contractor participating in the exploration activities and having discovered important gas reserves at Block 114. The discovery played a very important role for Essar in the strategy of developing the value chain from oil and gas exploration – production to processing, with the opportunity to bring great value to Essar’s investment in the Asia-Pacific region. Essar President affirmed that Essar has given a lot of priority to completing the assessment of reserves at Ken Bau field in order to move to the stage of production commercialization, bring cash flow to stakeholders soon. 

Petrovietnam President and CEO Le Manh Hung congratulated the success of Essar Group in all areas of activities and highly appreciated Essar’s initiative and activeness in the process of searching, discovering and completing the evaluation to bring the Ken Bau gas field into the commercial and development stage. On the basis of initial information on the expected reserve, gas quality and favorable location of the field, Petrovietnam completely agreed with the view that all conditions would be completed soon to put the gas field into operation; as the foundation for developing a complex of subsequent industries in the chain, including gas transportation, petrochemicals from gas and power generation. Petrovietnam President and CEO committed to work with the Operator of Block 114 and Essar to evaluate and consider the necessary conditions and provide the best support within the scope and influence of Petrovietnam for project development. 

In addition to working in the field of oil and gas exploration and production, Mr. Prashant Ruia also shared great business opportunities, especially in the fields of petrochemicals and carbon emission reduction, in the context that countries around the world including Vietnam and India have committed to a roadmap to balance carbon emissions at the COP 26 in Glasgow just held this year. Essar CEO said that the Group was investing a lot in the petrochemical sector and participating in large-scale, international projects and from the trust in exchanging business views with Petrovietnam, Essar was ready to introduce to Petrovietnam the opportunity to cooperate with Essar in those important projects. 

Besides the above main activities, Essar was also very successful in investing in other fields such as extracting methane from coal deposits deep underground, manufacturing trucks using LNG fuel. They are good opportunities Essar wanted to share with Petrovietnam to take advantage of to increase value through investment in developing niche products practical with socio-economic conditions. 

Highly appreciating the dynamism and vision of Essar Group, Petrovietnam President and CEO Le Manh Hung shared that Petrovietnam’s vision, goals and strategies had a lot in common with Essar Group’s in the context of energy transition, digital transformation was happening very fast globally and the need to change the business model of large economic groups. That perception opened up many opportunities for the two groups to cooperate and develop investment and business opportunities together. In order to immediately realize the opportunities, Mr. Le Manh Hung and Mr. Prashant Ruia agreed that the two sides would set up a Joint Working Group to research and survey information of each party, and immediately identify potential investment opportunities, make a list of opportunities in order of implementation priority. President and CEO Le Manh Hung officially invited Mr. Ravi Ruia and Mr. Prashant Ruia to visit Petrovietnam as soon as possible. 

On the same day, 17th December, Petrovietnam President and CEO Le Manh Hung attended and witnessed the signing ceremony of a Memorandum of Understanding (MOU) on Research and Training between BSR and IOC. IOC is the largest state-owned corporation of India and is owned by the Ministry of Petroleum and Natural Gas. The business of IOC covers the entire hydrocarbon chain from refining, transportation, product distribution to exploration, production of oil and natural gas to petrochemicals. In addition, IOC has also been investing heavily in alternative energy sources and is very strong in operating back-end plants with global operating staff. Currently, IOC owns 11 out of 23 Refineries, accounts for nearly 50% market share of India’s petroleum products with sales of about 80 million tons, owns more than 32% of the national refining capacity and 71% downstream pipeline capacity. 

Overview of the signing ceremony of Memorandum of Understanding on Research and Training between BSR and IOC 

Petrovietnam President and CEO Le Manh Hung highly appreciated the efforts of the two sides and the signing of MOU between BSR and IOC was completely in line with the development strategy of Petrovietnam. Petrovietnam is currently the leading group in Vietnam in the oil and gas value chain, participating in the investment and operation of the two largest oil refineries in Vietnam, providing over 70% of the country’s demand. Research and training activities are an urgent need and with proven capacity, scale and position, IOC is definitely a reliable partner to help BSR improve operational capacity, optimize costs and looking for suitable options for the future. 

During the visit of Vietnam’s National Assembly Chairman to India this time, it can be affirmed that Petrovietnam has achieved many good results, full of confidence and expectation about the future cooperation between Petrovietnam and major partners of India. 

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Petrovietnam fulfills many important targets ahead of schedule, signaling a year of excellent completion of plan

On 6th December, Petrovietnam Present and CEO Le Manh Hung chaired a regular production and business meeting in December 2021 online with heads of units throughout the Group. In the first 11 months of 2021, Petrovietnam has fulfilled many targets ahead of schedule, signaling a year of fulfillment and over-fulfillment of assigned tasks, making important contribution to the country amid the unprecedented difficulty of Covid-19 pandemic.

Attending and directing 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 leaders of member units of the Group.   

Overview of brigde points

In November, along with disease control, gradual re-opening of the economy according to the Government’s Resolution No. 128/NQ-CP dated 11th October 2021 on safe, flexible adaptation and effective control of the Covid-19 epidemic, the supply chains, social production chains were gradually resumed in the new normal state, the socio-economic situation improved a lot. However, the new wave of the Covid-19 pandemic casted a shadow over the short-term outlook as business confidence fell from last month, concerns about the state of public health, especially after the Omicron variant appeared in many regions of the world.

Platform BK – 18A Bach Ho field

With Petrovietnam in November, there were many factors that directly affected production and business activities. The average crude oil price was down compared to October 2021, especially after the appearance of the Omicron variant. Demand for gas mobilization for electricity production continued to be low due to the impact of Covid-19 with priority given to hydropower and renewable energy development, industrial customers continued to be affected by the Covid-19 epidemic and were forced to stop/reduce production/maintain idle operation. With the loosening of social distancing, the demand for gasoline has increased again, but the sharp drop in oil prices has led to the increase of discounts for sales, causing many difficulties for the operation of petroleum trading hubs.

Faced with that situation, with the persistent efforts to overcome difficulties of the whole system, together with the promotion of experience and efficiency in management and administration, Petrovietnam continued to record positive business results and many important targets were sticking to the plan, have been fulfilled and were likely to be fulfilled ahead of schedule. Notably, the oil and gas exploration and production was actively deployed; there was new oil and gas discovery at Soi Vang-1X well; put 03 fields/works into operation including Su Tu Trang field phase 2A and the works BK-18A, BK-19. Oil production in November reached 0.88 million tons, exceeding 9.3% of November’s plan; accumulated quantity of 11 months reached 9.97 million tons, exceeding 2.5% of the whole year plan. In particular, Petrovietnam has fulfilled the target 39 days ahead of schedule with total oil production of 9.72 million tons. Production of fertilizer, petroleum, and other petroleum products also adhered to the plan, aiming to fulfil and over-fulfil the set targets. 

With that result, Petrovietnam recorded high growth in financial indicators over the same period. Accumulated in 11 months of 2021, Petrovietnam’s contribution to the State budget is estimated at 84.7 trillion dong, 52% higher than the 11-month plan, 36% higher than the year plan, up 27% over the same period in 2020. By the end of November, there were 16 units that successfully completed the consolidated pre-tax profit target for the whole year 2021 including Parent company – Petrovietnam, PV GAS, BSR, Vietsovpetro, PVEP, PVOIL, PVFCCo, PVPower, PVCFC, PTSC, PVTrans, PETROSETCO, PVI, PVD, Rusvietpetro and PVMR. 

Investment management, thrift practice and anti-waste, implementation of value chain, digital transformation, re-generation of Petrovietnam corporate culture…have all recorded outstanding results. In the first 11 months of 2021, cost reduction is estimated at nearly 2,470 billion dong, equal to 90.6% of the 2021 plan. This is the basis for Petrovietnam to actively participate in social welfare activities and support Covid-19 prevention work. The total amount for the Group to support the Covid-19 Prevention Fund is more than 770 billion dong, including nearly 455 billion dong for the vaccine fund, supporting 50 ambulances, 300 ventilators and many other contributions to the health sector and localities. 

Petrovietnam awards ambulance support 

Digital transformation at the Group has recorded strong strides and put it into practice. At the parent company (the Group), phase 1 of the Digital Transformation Project is being implemented, with focuses on implementing core ERP modules at the Group Office. The application of ERP at the Parent Company will be the orientation for member units in digital transformation as well as the roadmap for integration, exchange of information and data between the Parent Company and other subsidiaries; as well as deploying solutions related to digitization of internal processes, task management, digital content management.  

In November 2021, oil and gas diplomacy activities also took place very excitingly on the occasion of the visits to the Russian Federation by the State President and to Japan by the Prime Minister. 

The Petrovietnam culture re-generation project has been promoted and implemented synchronously with a spirit of determination, contributing to a change in production and business activities throughout the Group, overcoming extremely serious difficulties and challenges of the Covid-19 pandemic. On 5th December, at the annual National Forum on Culture and Business 2021 first held in Vietnam with the theme “Cultural acculturation – The foundation for economic recovery and sustainable development”, Petrovietnam was selected by the National Council on the basis of a set of criteria under the direction of the Prime Minister and honored as one of the 10 “Enterprises meeting the standards of Vietnamese business culture”. 

Petrovietnam is honored as an enterprise meeting the standards of Vietnamese business culture

On the basis of analysis and evaluation of business results in November and the first 11 months of 2021, the Executive Management Board and leaders of the Divisions in each field in charge discussed, resolved difficulties and provided solutions to support member units in production, business and investment.

Giving direction, Mr. Hoang Quoc Vuong – Secretary of the Party Committee, Chairman of the Board of Members of the Group highly appreciated the efforts of the Board of Management and member units with remarkable results in the first 11 months of the year. At the same time, he requested the whole Group to continue striving to reach the destination safely with the highest efficiency. Mr. Hoang Quoc Vuong made a number of forecasts and noted the new context in the development of the 2022 plan, in which it was necessary to adapt to the new normal state while controlling the epidemic and ensuring business and production activities. He also noted the evaluation and formulation of the development strategy of Petrovietnam in the coming period; active participation in the process of amending the Petroleum Law, continuing to carry out restructuring; promoting exploration, increasing production reserves; reviewing debts, focusing on handling difficult projects…

Receiving instructions from the Chairman of the Board of Members of the Group, President and CEO Le Manh Hung concluded and assessed the overview of the Group’s 11-month production and business results; affirmed that Petrovietnam had achieved quite comprehensive results, fulfilled and over-fulfilled most of the important targets. The result reflected the great effort of the whole system and was one of the very important and positive results in the context that the country has been facing many difficulties under the impact of the pandemic. 

Petrovietnam President and CEO inspects production activities at Dinh Vu polyester plant

In order to ensure safety in the epidemic prevention, maintain production and business and finish early, Petrovietnam President and CEO requested the whole Group to continue maintaining the good implementation of the “dual goal”, coordinate to well organize the injection of the 3rd dose vaccine under permissible conditions, provide workers with Covid-19 treatment drugs, forecast the macroeconomic and market situation for the remaining time of 2021 and 2022 in order to develop scenarios and solutions to effectively operate the business plan; focus on promoting review of investment, portfolio management, building financial and capital plans, combining with production and business to build cash flow plans for the coming period; Continue to promote the good implementation of the Petrovietnam Cultural Regeneration Project with the action motto “Solidarity – Discipline – Creativity – Efficiency”, building Petrovietnam to develop stably and sustainably. 

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