Petrovietnam is ready for a new phase of development.

With its existing resources, significant position in the economy, and pivotal role in ensuring national energy security, the Vietnam National Oil and Gas Group ( Petrovietnam ) has the capacity and conditions to develop into a national energy industry group in accordance with the direction of the Party and the Government.

Petrovietnam General Director Le Ngoc Son listens to a report on the Ca Mau Gas Processing Plant.

Proactively adapt to the energy transition trend.

Currently, the energy transition is a frequently mentioned term in energy forums in Vietnam and around the world. It is the inevitable transition from biomass and fossil fuels to clean, renewable, and sustainable energy sources. This trend has been strongly promoted in recent years, as current and future energy activities globally are geared towards a low-carbon economy with the ultimate goal of zero carbon emissions. At the United Nations Climate Change Summit in November 2021 (COP26), Vietnam, along with 150 other countries, made a strong commitment to carbon neutrality. The Vietnamese government committed to achieving net-zero emissions by 2050.

Along with strong commitments at COP26, countries have developed and implemented roadmaps for significant carbon emission reductions, through major adjustments and changes in macroeconomic energy and economic policies to accelerate the achievement of this goal. And like many countries around the world, the Vietnamese government has demonstrated a very high level of determination in the transition from traditional fossil fuels to green and clean energy sources, aiming to reduce greenhouse gas emissions and combat climate change.

As a leading state-owned economic group, a core element in ensuring energy security and having a crucial influence on the entire national energy value chain, Petrovietnam is committed to working alongside the Government in implementing emission reduction roadmaps according to national and international targets. The energy transition trend and national policy objectives have profoundly impacted the present and future of businesses in the energy sector in general and Petrovietnam in particular. However, alongside the challenges, opportunities have also emerged to expand the value chain of petroleum products. In this context, Petrovietnam has proactively researched and formulated strategies to adapt and capitalize on opportunities in the energy transition, aiming to continue its development, maintain its pivotal position, and contribute even more to the national economy.

Overview of Dung Quat Oil Refinery

Throughout its formation and development, the oil and gas industry has always received close attention and guidance from the Party and the State; the position of the oil and gas industry has been affirmed by the Politburo in Resolution No. 41-NQ/TW dated July 23, 2015, specifically: “Develop the oil and gas industry into an important, key, complete, and synchronized economic and technical sector, including exploration, exploitation, transportation, processing, storage, distribution, services, and import and export; making an important contribution to the cause of national construction and defense.” In the context of the new situation with many changes compared to previous forecasts; Simultaneously, stemming from the urgent need to facilitate the development of Vietnam's oil and gas industry in general and Petrovietnam in particular, on April 24, 2024, the Politburo issued Conclusion No. 76-KL/TW on the implementation of Resolution No. 41-NQ/TW on the strategic orientation for the development of Vietnam's oil and gas industry until 2025, with a vision to 2035, and some orientations for the new period. Conclusion 76 affirmed the goal of "Developing the Vietnam Oil and Gas Group into a national energy industry group" with a core position and role in ensuring the country's energy security. This is an important orientation, opening up new opportunities for Petrovietnam's development in the new phase.

To implement this strategy, Petrovietnam has a solid foundation, sufficient resources, and many strengths that will help the transition process be carried out quickly, sustainably, and efficiently, saving costs, based on: strong financial capacity and a high degree of financial independence; ownership of a synchronized infrastructure system along the oil and gas value chain with many similarities to the orientations of the renewable energy transition; the oil and gas industry is an economic and technical sector with a high level of science and technology, intellectual content, and international integration; Petrovietnam has extensive, multilateral cooperation with foreign partners in the energy sector, thus having opportunities to cooperate and absorb knowledge and technology in renewable energy transitions; in particular, Petrovietnam has built a high-quality workforce trained and equipped with knowledge in technology, project management, risk management, and environmental technology; this will be very useful in implementing renewable energy transition projects.

As of December 31, 2023, Petrovietnam's consolidated total assets reached over 1 trillion VND (approximately 43 billion USD) – making it the only non-bank Vietnamese enterprise with assets exceeding 1 trillion VND (Petrovietnam's asset size is second only to four banks: Agribank, BIDV, VietinBank, and Vietcombank); equity capital exceeded 530 trillion VND (23 billion USD); average annual revenue is equivalent to approximately 9-10% of the country's GDP; and average annual contributions to the state budget reached 9-9.5% of the country's total budget revenue. It has consistently received a BB+ credit rating from Fitch Rating, a leading global credit rating organization, accurately reflecting Petrovietnam's strong business and financial performance.

BSR engineers exchange expertise during the overall maintenance of the Dung Quat Refinery.

Currently, Petrovietnam's domestic crude oil production averages 7.5-8.5 million tons per year; gas production reaches 6-8 billion cubic meters per year. Annually, Petrovietnam supplies over 13.5 million tons of various petroleum products, meeting approximately 70% of domestic demand; provides 1.8 million tons of petrochemical products; and supplies 1.6-1.7 million tons of urea fertilizer, meeting 70-80% of domestic urea fertilizer demand (approximately 2 million tons per year). Petrovietnam is currently 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 key products such as crude oil, petroleum products, natural gas, liquefied petroleum gas, electricity, and urea fertilizer have significantly contributed to all aspects of national life, playing a crucial role in the stability and socio-economic development of the country. Ensuring national energy security, food security, economic security, and participating in the protection of national sovereignty, defense, and security at sea.

Petrovietnam consistently updates and applies advanced, modern technologies, approaching world-class standards in its operations; researches and develops new products and services; seeks investment opportunities in potential new projects; improves techniques and renovates existing plants and facilities to optimize capacity, enhance quality, and diversify products, goods, and services, thereby reducing costs, improving competitiveness, and increasing efficiency. Petrovietnam is the only Vietnamese enterprise with prestigious awards for scientific research, having received: 3 Ho Chi Minh Awards, 3 State Awards for Science and Technology (accounting for over 20% of the total awards nationwide), and 7 VIFOTEC-winning scientific and technological research projects; along with many other reputable innovation awards. These projects all stem from practical production and business experience and have been effectively applied and utilized in the Group's operations. Petrovietnam also regularly connects and collaborates on research with major partners and corporations worldwide to anticipate and prepare for the rapidly evolving renewable energy trend; proactively promotes scientific research programs and develops roadmaps for renewable energy and new energy sources (offshore wind power, hydrogen, green ammonia), and CO2 capture and conversion.

Petrovietnam's system of subsidiaries and member companies such as Vietsovpetro, PVEP, PV GAS, BSR, PVOIL, PV Power, PVFCCo, PVCFC, PTSC, PV Drilling, PVTrans… are all known as strong, efficient enterprises holding leading positions in various sectors of the national economy.

These are the solid foundations, bases, and significant comparative advantages of Petrovietnam on its journey to transforming into a national energy industry corporation; enabling Petrovietnam to successfully achieve its strategic goals, as well as increasing its resilience, adaptability, and ability to overcome difficulties and fluctuations during the strategy implementation process.

Phu My Fertilizer Production Line

Thorough preparation and initial success.

Over the past period, while continuing to maintain existing production and business activities and promoting oil and gas exploration and exploitation to utilize the nation's oil and gas resources, Petrovietnam has proactively researched and developed a new development roadmap based on leveraging the industry's existing advantages. This includes orientations for developing new energy sources and renewable energy, expanding the oil and gas product value chain such as: offshore wind power, coastal wind power; importing and supplying LNG; increasing the proportion of gas in exploration, exploitation, power generation and petrochemical and chemical processing activities; developing the hydrogen/ammonia value chain, including production, storage, transportation and distribution; developing refueling stations/fuel cells, leveraging existing infrastructure at gas stations; developing the mechanical engineering industry, energy technical services, and participating in the global value chain. Developing carbon capture and storage (CCS/CCUS) technologies… In each area of ​​operation, Petrovietnam develops specific strategies, as well as tasks, solutions, and organizes their implementation in a systematic manner, in accordance with the characteristics and advantages of each industry and sector. Petrovietnam's units also proactively update and adjust long-term strategies and plans to suit new trends.

In parallel with its strategic directions, Petrovietnam has implemented long-term scientific research programs to support the Group's operations, such as: a program for supplementary basic research and applied research to assess the potential and increase oil and gas reserves using new technologies and advanced technical solutions to develop and exploit oil and gas fields ensuring economic efficiency; a program for research and development of the production, storage, transportation, distribution, and efficient use of hydrogen; a program for the development and application of CO2 recovery, storage, and utilization technologies at the Group's production facilities; a program for the development and application of new chemical and petrochemical products, advanced materials, and clean fuels from domestic raw materials with large markets, export potential, and high profit margins; and a program to research and assess the impact of renewable energy development and the energy transition on the Group's development strategy and response solutions. The research program focuses on solutions (mechanisms) and technologies to combine and integrate the business infrastructure systems of current and future key products, increasing overall economic efficiency, expanding scale, and enhancing competitiveness in the business of Petrovietnam's key products. Units within Petrovietnam also proactively develop research programs in their areas of strength, in line with the unit's strategic shift and development orientation.

Not only focusing on research and preparation, Petrovietnam has gradually participated in and achieved initial successes in shifting towards new trends. Examples include PTSC, a leading and currently the most capable general contractor in Vietnam in the field of gas-fired power plants, quickly participating in the supply chain of design, manufacturing, and equipment supply for many large partners and projects worldwide; PV GAS, the pioneering and only unit in Vietnam currently importing and trading LNG; PVOIL, in collaboration with partners, deploying electric vehicle charging stations at gas stations; and production and research units such as VPI, BSR, PVFCCo, PVCFC… continuously researching and developing new high-value products and materials, such as TF4035 thermoformed PP resin, which possesses many superior characteristics, high applicability, and environmental friendliness. High-quality petroleum products for the military, such as Jet A-1K, DO L-62, and RON 83; successful production of Carbon Nanotubes (CNT) from CO2-rich natural gas; slow-release fertilizers coated with nanomaterials; and lubricants containing additives based on graphene, which help reduce fuel consumption and emissions... Units within the Group have also been and continue to promote investment in facilities and infrastructure, fostering cooperation and research with domestic and international partners to implement strategic directions…

It can be said that transformation is a mandatory goal and task for Petrovietnam to ensure its survival and development. With its role, position, and mission as "Energy for Development"; with the close attention, guidance, and support of the Party and Government, especially through the development orientation of the Group in the new phase; and by upholding the traditional oil and gas culture of "Aspiration - Intelligence - Professionalism - Compassion," in the spirit of "one team, one goal," the entire Group will together continue to seize opportunities amidst difficulties and challenges, "renew old momentum and add new momentum," to "reach new heights," enabling Petrovietnam to soon achieve its goal of becoming a national energy industry group; always growing and developing sustainably, being the pride of oil and gas workers and the trust of the people nationwide.

Petrovietnam has proactively researched and formulated strategies to adapt to and capitalize on opportunities in the energy transition in order to continue developing, maintaining its pivotal position, and contributing even more to the country's economy.

Le Ngoc Son - General Director of Petrovietnam

Source: https://www.pvn.vn/chuyen-muc/tap-doan/tin/7caf17c3-1ea0-4679-a3bb-b3422e437892