Oil and gas exploitation at Bach Ho field
Miraculous growth!
On November 27, 1961, the first oil and gas organization in Vietnam - the Oil Exploration Group was established and it was not until 1986 that the first ton of crude oil was exploited. To date, the oil and gas production has reached about 430 million tons and about 180 billion m3 of gas. Every year, Petrovietnam supplies 9 - 11 billion m3 of gas to produce 35% of the national electricity output; 70% of nitrogen fertilizer output and 70 - 80% of gas for domestic consumption nationwide. In the petroleum sector, Dung Quat Oil Refinery (NMLD) is supplying 30% of the domestic petroleum demand, especially meeting the fuel requirements of the Ministry of National Defense ...
In 2022, Petrovietnam achieved a record in crude oil production with 8.98 million tons; produced 1.88 million tons of nitrogenous fertilizer, exported 606,000 tons, contributing 37.4% of fertilizer export turnover; produced gasoline to meet about 75% of domestic gasoline demand...
Oil and gas workers
Photo: Nguyen Truong Son
Petrovietnam has trained a large, highly skilled workforce. More than 30 years ago, the Vietnam-Russia Joint Venture (Vietsovpetro) had to move the rig base from Baku (Azerbaijan) to install it offshore in Ba Ria-Vung Tau province to explore and exploit oil and gas at Bach Ho field. But now, the oil and gas industry can manufacture, install, and operate oil and gas exploration and exploitation rigs on Vietnam's continental shelf in absolute safety. Mechanical products manufactured for oil and gas are exported, bringing in a large source of foreign currency for the country.
The role of "locomotive" of the economy was affirmed, contributing 20 - 25% of total state budget revenue in the period of 2006 - 2015 and 18 - 25% of the country's GDP. After 2015, Petrovietnam continuously faced a series of challenges and difficulties due to economic instability, pressure from falling oil prices, the Covid-19 pandemic, geopolitical conflicts, global supply chain disruptions, etc. However, Petrovietnam still contributed an average of 10 - 13% of the country's GDP; accounting for 9 - 11% of total state budget revenue and 16 - 17% of total central budget revenue. Of which, the budget contribution from crude oil accounted for 5 - 6% of total state budget revenue. Accordingly, oil and gas has become a special economic sector, an important macroeconomic regulation tool of the Government.
Panorama of Ca Mau Gas - Electricity - Fertilizer Industrial Park
Firmly entering the new phase
In the context of negative impacts of the macro economy, geopolitics, and market, in the first 10 months of this year, Petrovietnam completed all financial targets, reaching the target 1.5 - 5 months ahead of the annual plan.
2023 marked a series of important milestones for Petrovietnam . For the first time in a year, Petrovietnam made two new oil and gas discoveries at Block 16-2 (Ha Ma Vang -1X well) and at Block PM3-CAA (Bunga Lavatera-1 well). In addition, Petrovietnam and its partners signed related contracts and implemented the Block B - O Mon Project chain, which is the most important event, marking an important step forward in the chain of key gas and power projects that has lasted nearly 20 years. At the end of October 2023, the Thi Vai Liquefied Natural Gas (LNG) Terminal with a capacity of 1 million tons/year was inaugurated. This is the first and largest LNG terminal in Vietnam, marking a breakthrough for Petrovietnam in diversifying products, new energy, expanding markets, meeting the goal of ensuring energy security, transitioning and greening national energy sources.
In addition, the high-quality oil and gas service sector also made its mark when PTSC - the main service unit of Petrovietnam - became the first and only investor in Vietnam licensed by the Ministry of Natural Resources and Environment to carry out activities of monitoring, investigating, surveying, and evaluating marine resources to develop offshore wind power projects, serving the development of offshore renewable energy projects in Vietnam, exporting clean electricity to Singapore. This is also one of the important projects contributing to the realization of the memorandum of understanding on building a green economic partnership - digital economy between Vietnam and Singapore, joining hands to complete the goal of achieving 6 GW of offshore wind power by 2030 of the Power Plan VIII, as well as the Vietnamese Government's Net Zero commitment at COP26...
Vietnam's first LNG import ship arrives at Thi Vai port warehouse
It can be affirmed that the efforts of Petrovietnam and its member units over the years have always been closely linked to the goals and aspirations of realizing Petrovietnam's Development Strategy with the strategic orientation of national energy development and the socio-economic development strategy of the country; contributing to ensuring national energy security, while emphasizing the viewpoint of using resources economically and effectively, associated with protecting the ecological environment; proactively implementing solutions to mitigate and adapt to climate change; promoting the search and development of new energy and renewable energy... In the first 10 months of 2023, Petrovietnam's total revenue reached 745,000 billion VND, exceeding 10% of the annual plan, reaching the target 2 months ahead of schedule; Petrovietnam's total State budget contribution reached 121,000 billion VND, exceeding 54% of the annual plan, reaching the target 5 months ahead of schedule...
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