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./.


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