Through the "eye of the storm"
Over the past six decades, Petrovietnam has gone through many proud stages of development but has also faced many challenges and hardships. In particular, the oil price crisis from 2015 to 2019 was one of the most difficult periods for the Oil and Gas industry. Oil prices plummeted from over 100 USD/barrel to below 30 USD/barrel, severely affecting the Group's production and business activities.
In the face of continuous difficulties, with the attention, direction, rectification and support of the Party and State leaders, Petrovietnam has carried out a comprehensive reform.
Petrovietnam maintains an average crude oil production output of 7.5-8.5 million tons/year, and gas production of 6-8 billion m³/year. (Photo: Oil and gas exploitation on Vietnam's continental shelf.)
The first is the restructuring of the Group's management apparatus. It can be affirmed that Petrovietnam is a state-owned enterprise that has pioneered the restructuring of the management apparatus in the direction of " streamlining - efficiency ". The restructuring started in 2018 and after only 1 year, the number of focal departments/offices in the Group's apparatus was reduced by nearly half. Many officials had to change their positions, or from high positions to low positions, but there were absolutely no negative internal problems, no prolonged complaints. Because, thanks to the participation of the entire political system in the Group, everyone understands: Only building a streamlined and streamlined management apparatus can be effective in operation, and that is essential for the Group to develop sustainably.
Another strategic breakthrough is the “Petrovietnam Cultural Regeneration” Project with the goal of regenerating a pioneering culture to consolidate and create momentum for business regeneration.
Only by building a corporate culture with the identity of the oil and gas industry “ Aspiration – Intelligence – Professionalism – Loyalty ” can we create discipline, order and team spirit, thereby building a professional and effective working environment. This is not only an important strategy to restore and strengthen internal trust but also creates a strong driving force for the Group’s comprehensive innovation.
With a spirit of solidarity, discipline and responsibility, oil and gas workers have overcome all obstacles together to reach common goals. (Photo: Workers on the White Lion mining rig)
The Power of “One Team – One Goal”
The challenges did not stop when the Covid-19 pandemic broke out in 2020, causing unprecedented disruptions in the global supply chain. At the same time, geopolitical fluctuations and the global economic recession put additional pressure on the Group's business operations. These difficulties required Petrovietnam to quickly adapt and come up with innovative solutions to survive and develop.
Petrovietnam has proactively innovated its governance, especially in managing fluctuations, improving operational efficiency and shifting its business model. These governance strategies have helped Petrovietnam not only adapt but also thrive in a volatile context; steadily overcome storms, comprehensively complete all aspects of production and business activities, and achieve the goal of recovery and outstanding growth compared to the period before the Covid-19 pandemic.
Thanks to solidarity and continuous efforts, Petrovietnam has overcome the dual crisis of falling oil prices and the Coid-19 pandemic and achieved impressive results from 2020 to present.
As of December 31, 2023, Petrovietnam's total consolidated assets increased by 19% compared to 2020, reaching over 1 million billion VND; total revenue increased by 81% compared to 2020, contributing an average of 9-10% of the country's GDP annually. In 2023 alone, Petrovietnam's contribution to the state budget increased by 83% compared to 2020, accounting for an average of 9-9.5% of the total national budget revenue annually.
From 2020 to the end of June 2024, Petrovietnam achieved a total revenue of VND 3.6 million billion, paid nearly VND 600 trillion to the State budget, and consolidated pre-tax profit reached VND 230 trillion. Notably, the Group has successfully completed two years ahead of schedule the financial targets for the 2021-2025 period assigned by the Prime Minister.
Petrovietnam’s key products such as crude oil, natural gas, liquefied petroleum gas, electricity, and fertilizer have become an indispensable part of all socio-economic activities of the country. (Photo: Activities at the 1 million ton Thi Vai LNG Warehouse)
In the production sector, Petrovietnam maintains an average crude oil production output of 7.5-8.5 million tons/year, and gas production of 6-8 billion m³/year. The Group supplies more than 13.5 million tons of gasoline and oil each year, meeting about 70% of domestic demand. In addition, Petrovietnam also produces 1.6-1.7 million tons of nitrogen fertilizer, meeting 70-80% of domestic demand, contributing to ensuring national food security.
In the energy sector, Petrovietnam is currently safely and stably operating 9 power plants with a total capacity of over 6,600 MW, accounting for about 8.5% of the total installed capacity of the national power system. Petrovietnam's key products such as crude oil, natural gas, liquefied petroleum gas, electricity, and nitrogen fertilizer have become an indispensable part of all socio-economic activities of the country.
In particular, during this period, many key projects of Petrovietnam were put into operation, serving the country's socio-economic development. The biggest mark in this period was the miraculous "revival" of the Thai Binh 2 Thermal Power Plant Project after a long period of stagnation. This success is the most vivid proof of the spirit of " One team - One goal ".
Petrovietnam leaders inspect the progress of Thai Binh 2 Thermal Power Plant project (2022).
Besides Thai Binh 2, there are also a series of other key projects of Petrovietnam that have been gradually overcome difficulties and put into operation such as Song Hau 1 Thermal Power Plant, LNG Thi Vai port warehouse, Nhon Trach 3 - 4, EPC contracts for mine development projects in the Block B gas - power project chain...
It can be affirmed that the success of Petrovietnam cannot be separated from the value of corporate culture of solidarity and unity. “ One team – One goal ” is not only a slogan but has permeated every action and thought of all employees. This spirit has been clearly demonstrated in the most difficult times. When facing crises, all employees of Petrovietnam have worked together, shared responsibilities, and sought common solutions.
New development space for Petrovietnam
Conclusion No. 76-KL/TW dated April 24, 2024 (KL76) of the Politburo has opened up a new space for development for the Vietnamese Oil and Gas industry, with Petrovietnam as the main force, through the orientation of exploiting the potential conditions of the industry to develop into the fields of renewable energy and new energy. Particularly important is that KL76 has oriented Petrovietnam to become a National Industry - Energy Group, playing a pioneering role in developing the fields of renewable energy and new energy. This is a great opportunity, but at the same time it also poses many problems, difficulties and challenges, forcing Petrovietnam to continue to innovate strongly, adapting to the requirements of sustainable development in the new context.
Petrovietnam General Director Le Ngoc Son discussed at the Ca Mau Gas Processing Plant model.
At the Conference on dissemination and implementation of Resolution 76 organized by the Secretariat, comrade Le Manh Hung, Party Secretary and Chairman of the Board of Directors of Petrovietnam, stated that documents, policies, strategic orientations, institutional improvements, and policies to create favorable conditions for the development of the Vietnamese oil and gas industry are opportunities and motivations for Petrovietnam to develop.
On this basis, Petrovietnam has identified 7 groups of tasks and solutions that need to be implemented drastically and synchronously. These are: perfecting institutions and policies to support industry development; developing synchronous and smart infrastructure; improving corporate governance efficiency; optimizing governance and attracting investment capital; building a development strategy towards becoming a national energy industry group. At the same time, expanding the value chain to new and renewable energy; promoting digital transformation, scientific research, innovation and human resource development; strengthening international cooperation, protecting resources and the environment, closely linked to national defense, security and foreign affairs.
Conclusion 76-KL/TW dated April 24, 2024 orients the development of Petrovietnam to become a national Industry - Energy Group, playing a pioneering role in developing the fields of renewable energy and new energy. (Photo: Offshore wind power base manufacturing site at PTSC Energy Industry and Technical Logistics Center, Vung Tau City)
Implementing the strategic policies of the Politburo, the Party Committee of the Group has issued the "Plan to implement the development strategy to 2030, vision to 2050 in the spirit of KL76" with the spirit of " One team, one goal ", aiming to focus on leadership, direction, and strictly implement viewpoints, creating high consensus from the parent company - the Group to member units, from leaders of units to employees in the process of developing and implementing the above strategies and goals.
At the Conference on Dissemination and Implementation of the Directives of the Party Committee of the Group on Upgrading, Deepening and Enhancing the Culture of Coordination in the Implementation of Tasks, Petrovietnam General Director Le Ngoc Son emphasized: Vietnam National Oil and Gas Group is facing the opportunity to become a pillar Industry - Energy Group of the country; therefore, it requires workers to have better coordination, higher qualifications; workers in the whole Group must raise awareness in the culture of work coordination, to better perform their tasks. More than ever, all oil and gas workers need to continue to promote the achievements gained in the recent period, maintain professionalism, solidarity, clearly define and unify common goals to complete the tasks.
“Every Oil and Gas worker needs to know, understand, implement, renew and enhance Petrovietnam’s cultural values; consider it not only an obligation and responsibility but also a right and pride. Each person needs to always remind themselves to be proactive in all situations and work, taking it as a compass and direction in all activities. With the spirit of “One team – One goal”, together we will continue to open up opportunities in difficulties and challenges, renew old motivation and add new motivation, bringing the Group to new heights”
The journey of more than 6 decades of the Vietnam Oil and Gas industry is not only a story about the development of an industry, but also a symbol of the will and aspiration of the Vietnamese people in conquering challenges, mastering resources and building a sustainable national economic foundation.
Celebrating the 63rd anniversary of the Vietnam Oil and Gas Industry's Tradition Day and moving towards the 50th anniversary of the Vietnam Oil and Gas Group's Establishment (September 3, 1975 - September 3, 2025) is also the time to step forward into a new development stage with intertwined opportunities and challenges. Petrovietnam further demonstrates its determination to affirm its leading role in leading the country's economy, realizing the vision of becoming the leading National Industry - Energy Group in the region./.
Truc Lam
Source: https://www.pvn.vn/chuyen-muc/tap-doan/tin/3ab518a0-c9e1-477e-8a46-d8aa3bd999e7
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