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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