Blog

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. 

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.  

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.

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. 

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. 

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. 

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. 

PetroVietnam

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.   

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.

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. 

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”. 

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. 

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. 

PVN

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. 

PVN

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.

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.

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.

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./.

PVN

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.

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.

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.  

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.

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.

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./.
PVN