New opportunities, new fortunes for Petrovietnam to develop rapidly

After 49 years of construction and development, the Vietnam Oil and Gas Group is facing a new opportunity, a new chance to change itself - That is to build itself into a national industrial and energy group. Looking back at the nearly 50 years of construction and development of Petrovietnam , the collective leadership and oil and gas workers through the periods have the right to be proud of what they have contributed to the socio -economic development of the country. Born right after the country was completely unified from the genius premonition of President Ho Chi Minh, in the midst of difficulties and shortages due to the country being surrounded and embargoed, with the extraordinary will and determination of Uncle Ho's soldiers. Oil and gas workers have gone from "nothing to something"; from the position of "employees", "apprentices" now have basically mastered the most advanced technologies in the oil and gas exploration, exploitation and processing industry. “ Aspiration - Intelligence - Professionalism - Loyalty ” is the “gene code” of oil and gas workers and is the driving force and luggage for today's generation of oil and gas workers to move forward steadily.

Petrovietnam Chairman of the Board of Directors Le Manh Hung introduced the Group's CO2 emission reduction strategy to the Prime Minister.

With the special attention of the Party and the State, the Oil and Gas industry has continuously developed, increasingly affirming itself as an important and key economic and technical sector of the country. Petrovietnam has grown strongly, playing a pivotal role in the Oil and Gas industry, ensuring 4 important national security, namely: Ensuring national energy security; ensuring national food security; ensuring national economic security; ensuring national sovereignty security. That has been affirmed and recorded in many important documents of the Party and the State, most recently in Conclusion No. 76-KL/TW dated April 24, 2024 of the Politburo . Petrovietnam has built a complete and synchronous oil and gas industry system from oil and gas exploration, exploitation to the development of gas - electricity - processing industry and high-quality oil and gas technical services; forming a team of nearly 60,000 highly qualified workers, with a sense of responsibility, discipline, professionalism, creativity, truly mastering the modern and complex science and technology of the industry and reaching out to the world.

Comrade Le Manh Hung, Party Secretary, Chairman of the Board of Directors of Petrovietnam, surveyed the LNG Thi Vai port warehouse.

With the synchronous development of the oil and gas industrial chain, Petrovietnam has become the core and nucleus in the formation of concentrated industrial zones in: Ba Ria - Vung Tau , Dong Nai - Hiep Phuoc, Ca Mau, Dung Quat - Quang Ngai, Vung Ang - Ha Tinh, Nghi Son - Thanh Hoa... This synchronous investment has fundamentally changed the economic structure, bringing in large revenues for the national budget, basically meeting the energy and fertilizer requirements of the whole country. Projects such as Dung Quat Oil Refinery, Ca Mau Gas - Power - Fertilizer Complex... are still operating very effectively not only in terms of economy but also making great contributions to the socio-economic development of the country in general and each region and locality where the project is in operation. These regional-scale projects are clear evidence of the qualifications and capacity of Vietnamese oil and gas officials and engineers, and are an important premise for Petrovietnam to promote the export of oil and gas services abroad. In terms of finance, Petrovietnam's production and business activities are very effective. Petrovietnam is the state-owned enterprise that contributes the most to the country's socio-economic development. With the consolidated assets of Petrovietnam as of December 31, 2023 being over 1.0 million billion VND, equivalent to about 43 billion USD, the equity at the same time was 532 thousand billion VND, equivalent to 22.6 billion USD. From 1986 to 2023, the total revenue of Petrovietnam reached over 524 billion USD, equivalent to 10-13% of the country's GDP; Petrovietnam contributed over 129 billion USD to the national budget, in the period from 2010 and before, it contributed 25-30% of the total national budget revenue, in the period from 2011 to 2015, it contributed 20-25%, in the period from 2016 to present, due to the development of other economic sectors of the country, Petrovietnam always contributed 9-10% of the total national budget revenue. Those statistics show the strong, undeniable influence of Petrovietnam on the socio-economic development of the country and oil and gas people have the right to be proud of those contributions!

PQP - Hai Thach 1 rig cluster

As a leading enterprise of the economy, playing a key and fundamental role in ensuring energy security, food security, economic security and national sovereignty security, Petrovietnam is always aware that the Group's operating results have a direct and important impact on the implementation of the country's socio-economic development goals. Therefore, in any circumstance, no matter how difficult or challenging, the collective leadership and oil and gas workers always maintain confidence, calmly overcome difficulties, proactively build and organize the synchronous implementation of solutions to best fulfill the targets and tasks assigned by the Party and the State. The fact that Petrovietnam has steadily overcome the "double crisis", regained growth momentum, and continuously set records in production and business in the 2020-2023 period is clear evidence of that. In difficult times, the more steadfast, the more courageous in the face of challenges, growth is the "command" of survival of the enterprise, a mandatory requirement for the goal of sustainable development. At Petrovietnam, in the work of management and operation, this viewpoint and spirit is always emphasized by the Party Secretary, Chairman of the Board of Directors Le Manh Hung that it is impossible to go backwards, forced to go sideways or go up. There is no limit to the growth target, the market space is still large, Petrovietnam is not satisfied with what it has, satisfied with its contribution to the country. That is also the nature of generations of oil and gas workers, the desire to conquer, the desire to overcome challenges, the desire to contribute to the mission of "Finding oil to enrich the Fatherland".

A corner of Ca Mau Gas - Power - Fertilizer Complex

Looking at countries with oil and gas industries such as Thailand, Malaysia, Indonesia, etc., we must see that the scale of Petrovietnam is still quite modest. For example, in 2023, compared to 2019, Petrovietnam's total assets increased by 18%, while PTT (Thailand) increased by 30%, Pertamina (Indonesia) increased by 36%, Petronas (Malaysia) increased by 15%. The value of Petrovietnam's total assets in 2023 was only 24.9% of Petronas' total assets, 41.4% of PTT's total assets, and 47.2% of Pertamina's total assets. Petrovietnam's consolidated revenue in 2023 was only 33.4% of Petronas' revenue, 24.8% of PTT's revenue, and 30.9% of Pertamina's revenue. “From the above analysis, it can be seen that, compared to national oil and gas corporations and companies in the region, Petrovietnam is still small in scale, and still has room and potential for development; therefore, Petrovietnam needs to transform its business model more strongly and innovatively to approach and catch up with these enterprises, contributing more to the country's socio-economic development in the new period” - Chairman of the Board of Directors of Petrovietnam Le Manh Hung emphasized.

Phu My Fertilizer Plant

In the coming time, with great expectations set by the Party and the State for the development of the Group and with new opportunities and new times, Petrovietnam is aiming for and determined to build and develop the Group to become the leading national Industry - Energy Group in the country, with high competitiveness in the region and internationally; playing a core, main, leading role, with strong financial potential and advanced scientific level; having high competitiveness, successfully implementing the development strategy of the Oil and Gas industry. That is both a task and at the same time a goal, a "command" for the sustainable growth and development of Petrovietnam, so that the Group can maintain its position, role and contribute to the country, together with the Party and the Government to build a strong Vietnam .

PTSC offshore wind power base construction port

To achieve that goal, Chairman of the Board of Directors of Petrovietnam Le Manh Hung said that the Group has developed the Action Plan of the Party Committee of the Group to implement Conclusion 76. Accordingly, to effectively implement the development strategy of the Vietnam Oil and Gas industry, Petrovietnam must identify and determine the impact from the world and regional environment, difficulties and challenges, assess resources, thereby determining development goals, orientations and solutions for implementation in the coming time, ensuring the successful implementation of the development goals of the oil and gas industry approved by the Politburo in Conclusion 76 and Resolution 41. Comrade Le Manh Hung also affirmed that the documents, policies, and strategic development orientations, along with the completion of related mechanisms and policies to create conditions for Petrovietnam to develop, are opportunities and fulcrums for Petrovietnam to overcome difficulties and confidently realize the goal of developing the Vietnam Oil and Gas Group into a national Industry - Energy Group with regional and international competitiveness. Based on the orientation of becoming a national Industry - Energy Group, Petrovietnam has identified 7 groups of tasks and solutions that need to be implemented drastically, synchronously and effectively immediately, including: Proactively coordinating closely with competent agencies to build and perfect institutions and policies to facilitate the rapid and sustainable development of the oil and gas industry, with the Vietnam Oil and Gas Group as the key player; Perfecting the oil and gas industry infrastructure in a synchronous and smart direction, reaching the advanced level of the ASEAN region, meeting the requirements of ensuring national energy security and the trend of energy transition; Improving corporate governance of the entire Petrovietnam; Increasing attraction and improving the efficiency of using investment capital for development, and managing the portfolio of investment projects well; Develop a development strategy and a restructuring project for Petrovietnam according to the model of a national Industry - Energy Group, in line with the strategic orientation for the development of the Vietnamese oil and gas industry, ensuring the goal of continuing to maintain market share in the traditional oil and gas sector with high quality and economic efficiency, while expanding the field of operation through participating in the value chain of new energy and renewable energy; Promote digital transformation, promote research, application, technology transfer, innovation, improve the quality of human resources; Strengthen international cooperation, ensure national defense, security and foreign affairs, protect natural resources and the environment. Believing that, with the results and achievements gained during the nearly half-century journey of construction and development, with the forged mettle and intelligence, combined with the valuable qualities of oil and gas workers summarized through the core values of " Aspiration - Intelligence - Professionalism - Compassion " and especially the attention, leadership and direction of the Party and State, the collective leadership and oil and gas workers will soon realize the goal of making Petrovietnam a national Industry - Energy Group with regional and international competitiveness, as expected by the Party and State for the Group's development in the recent Conclusion 76 of the Politburo .

Source: https://www.pvn.vn/chuyen-muc/tap-doan/tin/bdd5c92d-eacb-42b4-b5a9-7c0d3cc27786