PVN must resolve obstacles and ensure the progress and efficiency of the Block B – O Mon gas-fired power project chain, as requested by the Prime Minister .
Speaking at the Vietnam Oil and Gas Group (PVN)'s 2024 task deployment conference on the afternoon of January 8th, the Prime Minister requested the group to address obstacles and ensure the progress and effectiveness of key oil and gas projects, including the Block B – O Mon gas-fired power plant project chain.
The Prime Minister requested the Ministry of Industry and Trade to complete the revision of the Circulars regulating the operation of the electricity market, and the State Capital Management Committee at enterprises to direct the resolution of related issues to remove obstacles for this project chain.
The Block B gas field is a key project supplying gas for power generation in the southern region, with reserves of approximately 107 billion cubic meters of gas over 20 years. Production sharing agreements for this field were signed in 1996 and 1999. In 2015, PVN acquired Chevron's assets after the company withdrew from the project.
The project was planned to have its first gas flow by the end of 2026, supplying approximately 5 billion cubic meters per year to the O Mon 1, 2, 3, and 4 power plant complex. However, due to obstacles in commercial negotiations and investment appraisal procedures, the project has been delayed for many years.
In 2023, PVN signed EPC contracts for the field development projects under this project chain after many years of interruption. At today's meeting, PVN representatives also presented solutions for implementing the Block B project chain to ensure the first gas flow is achieved as expected.
In addition to the above project, at the conference, the Prime Minister noted that PVN should pay attention to the progress of several other key projects such as the Nhon Trach 3 and 4 power plants (to be completed by the end of 2024 or early 2025), upgrading and expanding the Dung Quat oil refinery, the Ca Mau gas-fired power and fertilizer plant, improving the efficiency of the Nghi Son petrochemical refinery, and restarting the Long Phu 1 thermal power project.
PVN is also tasked with researching new projects, coordinating with relevant agencies to explore and exploit oil and gas, ensuring national defense and economic security for oil and gas activities, and maintaining national independence, sovereignty, and territorial integrity in the East Sea and islands. The Group needs to maintain a sound financial structure, balancing financial resources for production, business, and investment development, as required by the Prime Minister.
According to PVN's report, in 2023, the group successfully met its production and business targets, effectively operating oil and gas fields, and achieving targets for oil and gas production, electricity, petroleum, and fertilizers. In particular, the Dung Quat Refinery achieved a record production of over 7 million tons of products compared to its designed capacity of 6.5 million tons per year.
In 2023, PVN achieved revenue of VND 942,800 billion, an increase of VND 11,600 billion compared to the previous year, and consolidated profit of over VND 54,500 billion. The Group contributed VND 135,500 billion to the State budget, exceeding the plan by 73%. The average monthly income of employees was VND 26.87 million. During the year, PVN put into operation the Thai Binh 2 Power Plant and the Thi Vai LNG terminal with a capacity of 1 million tons/year.
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