Vietnam's Oil and Gas Industry "Strengthens" with the Country

Complete the historical mission

Based on the strategic vision of the Party and State leaders on the Vietnam Oil and Gas industry, on November 27, 1961, the 36th Oil Exploration Group was established, marking the birth of the Vietnam Oil and Gas industry. Since then, through the development stages of the Vietnam Oil and Gas General Department, Vietnam Oil and Gas Corporation, Vietnam National Oil and Gas Group ( Petrovietnam ), the Vietnam oil and gas industry has always fulfilled the mission entrusted by the Party, State and people, achieved many proud achievements, and made important contributions to the journey of innovation and continuous development of the country.

Petrovietnam is determined to maintain its growth rate and develop sustainably on the basis of maintaining core areas, with the journey towards becoming a national industrial - energy group.

Since the 1990s, when the country was still facing difficulties, embargoes, and economic crises, the search and exploitation of oil in Bach Ho basement not only opened a new page for the country's oil and gas industry but also made an important contribution to solving the post-war energy crisis, becoming the driving force for economic growth that started the country's renovation period. In the early stages, with an average growth rate of about 18-20%/year, the oil and gas industry annually contributed 28-30% of the total state budget revenue, export turnover accounted for an average of 15% of the total export turnover of the whole country..., making a very important contribution to the process of industrialization and modernization of the country. In the development journey, the industry continues to make great contributions with increasingly high value to the country. Currently, Petrovietnam annually contributes an average of 9-10% of the country's GDP; Contribution to the State budget accounts for 9-9.5% of the total State budget revenue, in the context of the economy having been greatly expanded. As of December 31, 2023, Petrovietnam's total consolidated assets reached more than 1 million billion VND (equivalent to about 43 billion USD) - the only Vietnamese enterprise that is not a bank with assets of over 1 million billion VND.

Not to mention the numbers and planning targets, the Vietnam Oil and Gas industry, Petrovietnam, not only performs well its role as the locomotive and main force of the economy, an effective tool for macro-regulation of the State, but also plays an important role in ensuring national energy security, actively participating in protecting the sovereignty of the Fatherland's seas and islands, protecting the environment and taking the lead in social security work... Those things in themselves contain profound meanings.

Petrovietnam Chairman of the Board of Directors Le Manh Hung reports to Prime Minister Pham Minh Chinh on production and business activities.

Currently, Petrovietnam's domestic crude oil production output averages 7.5-8.5 million tons/year; gas output reaches 6-8 billion m3/year. Every year, Petrovietnam supplies over 13.5 million tons of various types of gasoline and oil, meeting about 70% of domestic gasoline and oil demand; supplies 1.8 million petrochemical products; and supplies 1.6-1.7 million tons of nitrogen fertilizer, meeting 70-80% of domestic nitrogen fertilizer demand (about 2 million tons/year). Petrovietnam is commercially operating 9 power plants with a total capacity of 6,600 MW, equivalent to 8.5% of the total installed capacity of the national power system. Petrovietnam's main products such as crude oil, gasoline, natural gas, liquefied gas, electricity, nitrogen fertilizer, etc. have participated in all life activities of the country with a large proportion; making an important contribution to the stability and development of the socio-economy; ensure energy security, food security, economic security.

In addition, oil and gas activities have covered most of Vietnam's continental shelf and 200-nautical mile exclusive economic zone, as milestones affirming Vietnam's sovereignty, sovereign rights and jurisdiction in the East Sea.

During its operations, Petrovietnam has always actively carried out social security activities nationwide. Every year, the Group and its member units spend about 300-500 billion VND from production and business operating costs and contributions from employees throughout the Group for social security activities. Social security implementation from 2006 to 2023 reached over 7.82 trillion VND. In 2023, the entire Group spent 750 billion VND to implement social security across the country. In 2024, Petrovietnam plans to implement social security of 750 billion VND and in the first 10 months of the year, it has carried out activities worth 515 billion VND.

With such great contributions, the Party, State and people highly appreciate, recognize the achievements and award Petrovietnam many noble awards such as: Gold Star Order, Ho Chi Minh Order, Labor Hero Title,...

“Continuing resources, creating the future”

After more than 60 years of construction and development with many ups and downs, the development history of the Vietnamese Oil and Gas industry is generally considered a series of successes and victories with great achievements and important contributions to the country. "Fire seekers" through generations have always maintained that fine tradition with the aspiration to bring the Oil and Gas industry to constantly develop and reach new heights.

Petrovietnam has made changes that create new driving forces for growth and development.

In the new context with the strong trend of energy transition, along with the trend of green economy and circular economy, creating major changes in the global energy industry, including Vietnam. To ensure the development of the Oil and Gas industry, meeting the country's development requirements in the new situation, on April 24, 2024, the Politburo issued Conclusion No. 76-KL/TW on the implementation of Resolution No. 41-NQ/TW on the orientation of the Vietnam Oil and Gas Industry Development Strategy to 2025, with a vision to 2035 and some orientations for the new period. This is an important orientation for the development of the industry and the Group when opening the direction of developing Petrovietnam to become a national industrial - energy group.

In recent years, in order to meet the new requirements of the energy transition trend, as well as the volatile world economic and geopolitical context, Petrovietnam has proactively made strong changes to overcome challenges, constantly setting new records in production and business, thereby consolidating internal strength, creating a solid foundation as a driving force for development in the current new period. With strong financial resources, corporate culture is recreated and consolidated; corporate governance is upgraded; value chains and closely linked ecosystems are formed, etc. Petrovietnam confidently accompanies the country into the new era "Era of national growth". In particular, the Group has made changes to create new driving forces for growth and development such as: Promoting and expanding exploration of non-traditional oil and gas objects; promoting deep processing; developing science and technology in many fields; researching carbon recovery, storage, and treatment; importing LNG; Participate in the field of new energy, renewable energy (offshore wind power); actively invest in forming national energy centers;…

Petrovietnam General Director Le Ngoc Son surveys activities at Oil and Gas projects and units

With the motto "Continuing resources, creating the future", Petrovietnam General Director Le Ngoc Son affirmed that the entire group will unite, join hands, strive to successfully carry out the tasks assigned by the Party and the State and the goals set by the Group, build and develop Petrovietnam into the leading industrial - energy group in the country and the region. Petrovietnam General Director believes that with the spirit of "One team - One goal" , the Group will continue to open up opportunities in difficulties and challenges, renew old motivations and add new motivations, bringing the Group to new heights.

Chairman of the Board of Directors of Petrovietnam Le Manh Hung emphasized that, as a leading state-owned economic group, along with carrying out its business tasks, Petrovietnam always links its activities with the implementation of the country's tasks, ideas, and innovative viewpoints . The country's innovations will also create institutional momentum for Petrovietnam to make breakthroughs, develop, ensure the growth rate of the industry, and meet the country's requirements. Petrovietnam is determined to maintain the growth rate, shift the structure and business model to ensure sustainable development on the basis of maintaining core areas, with the journey towards building a plan to become a national industrial - energy group.

Vietnam's Oil and Gas Industry Makes Important Contributions to the National Economy and Energy Security

Continuing the tradition, bravery and will of the Oil and Gas people, continuing to inherit and promote the cultural values ​​that have been shaped and created over more than 6 decades of formation, construction and development, the aspiration to bring the Oil and Gas industry to new heights still burns in today's generation of "fire seekers" with the determination to realize the development orientation goals of the Party and Government for the Oil and Gas industry in the new period, to always make worthy contributions to the development of the country.

Mai Phuong

Source: https://www.pvn.vn/chuyen-muc/tap-doan/tin/77707fae-1f03-4570-ac7b-2f143e873274