All current and future energy activities are geared towards a low-carbon and carbon-neutral economy. This puts great pressure on oil and gas companies globally to transform their business models.
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| PetroVietnam General Director Le Ngoc Son listens to a report at Ca Mau Gas Processing Plant. (Source: PVN) |
With its existing resources, important position in the economy and a 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 Government.
Consolidate and pave the way
In recent years, the energy industry in general and Oil and Gas in particular have continuously undergone major fluctuations and turning points in response to the requirements for reducing carbon emissions, developing a green economy, a circular and sustainable economy that many countries around the world, including Vietnam, have committed to implementing.
In that context, PetroVietnam has had orientations and preparations to transform for rapid and sustainable development, adapting to new trends with the goal of "Building and developing PetroVietnam into a leading industrial - energy group in the country and region; having a core position and role in ensuring national energy security".
On April 24, 2024, the Politburo issued Conclusion No. 76-KL/TW, orienting, consolidating and paving the way for the implementation of the Development Strategy of the Oil and Gas industry in general and PetroVietnam in particular on a new journey.
It can be affirmed that, to implement this strategy, PetroVietnam has a solid foundation, sufficient resources and many strengths to help the transition process be carried out quickly, sustainably, and effectively and economically based on: Strong financial capacity; There is mutual linkage in the oil and gas value chain through 5 main areas (including oil and gas exploration and exploitation; gas industry; oil and gas processing; electricity and renewable energy industry; high-quality oil and gas technical services); Oil and gas is an economic - technical sector with high scientific and technological level, intellectual content and international integration; PetroVietnam has extensive and multilateral cooperation with foreign partners in the energy sector, so there are opportunities to cooperate and absorb knowledge and technology on energy transition; In particular, the Group can take advantage of experience and infrastructure from the oil and gas value chain such as: Infrastructure systems for storage, processing, distribution, experience in construction, installation, maintenance of onshore and offshore oil and gas projects... which have many similarities with the development requirements of new energy sources requiring large investment, scientific and technical level as well as high-quality human resources with the ability to manage and operate large and complex projects and works.
As of December 31, 2023, PetroVietnam's total consolidated assets reached more than 1 million billion VND (equivalent to about 43 billion USD); equity capital of more than 530 thousand billion VND (23 billion USD); average annual total revenue equivalent to about 9-10% of the country's GDP; average annual State budget contribution reached 9-9.5% of the country's total budget revenue. Fitch Rating, the world's leading credit rating organization, continuously rated credit rating at BB+ (2023); accurately reflecting PetroVietnam's strong business and financial situation.
Currently, PetroVietnam's domestic crude oil production averages 7.5-8.5 million tons/year; gas production 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 petroleum gas, electricity, fertilizer, etc. have participated in all activities of the country's life with a large proportion; contributed significantly to the stability and development of the socio-economy; ensured national energy security, food security, economic security and participated in protecting national defense sovereignty and security at sea. |
PetroVietnam owns a strong, synchronous, closed-chain, complete oil and gas industry infrastructure system at all stages; forming a team of nearly 60,000 highly qualified workers, trained and equipped with knowledge of technology, project management, risk management, compliance with safety and environmental standards; with a sense of responsibility, discipline, professionalism, creativity, truly mastering the modern, complex science and technology of the industry and reaching out to the world.
PetroVietnam regularly updates and applies advanced, modern technology, approaching world-class standards in its operations; researches and develops new products and services; seeks investment opportunities in potential new projects; improves techniques and converts existing factories and works to optimize capacity, improve quality and diversify products, goods and services, helping to reduce costs, enhance competitiveness and efficiency.
Over the past 15 years, the Group has received 10 Ho Chi Minh Awards and State Awards for Science and Technology; along with many other prestigious innovation awards. These projects all originate from production and business practices and are applied and promoted effectively in the Group's operations. Petrovietnam also regularly connects and cooperates in research with partners and large corporations in the world to anticipate and prepare for the strong energy transition trend; proactively and vigorously promote scientific research programs and build a development roadmap for renewable energy (RE) and new energy (offshore wind power, hydrogen, green ammonia), CO2 capture and conversion.
PetroVietnam's subsidiaries and members such as: Vietsovpetro, PVEP, PV GAS, BSR, PVOIL, PV Power, PVFCCo, PVCFC, PTSC, PV Drilling, PVTrans... are all known as strong, efficient enterprises, with leading positions in industries and sectors of the country's economy.
These are the solid foundations, bases and great comparative advantages of PetroVietnam on its journey to transform into a national energy industry group; helping the enterprise to be qualified to successfully implement strategic goals, as well as increase its ability to endure, adapt and overcome difficulties and fluctuations in the process of implementing the strategy.
Proactively research and be ready to move towards new trends
Based on resources and development orientation, along with continuing to maintain existing production and business activities, promoting oil and gas exploration and exploitation activities to take advantage of the country's oil and gas resources, in recent years, PetroVietnam has proactively researched and built a new development roadmap based on promoting the existing advantages of the Oil and Gas industry to develop new energy sources, renewable energy, especially: offshore wind power (ÐGNK); coastal wind power; import and supply of LNG; development of gas power; production of energy equipment; distribution of storage batteries, charging stations for electric vehicles; promoting the development of clean energy forms such as hydrogen, ammonia and new products with high added value for the market; researching and implementing carbon capture, use and storage (CCS/CCUS) projects; improving the quality of oil and gas services, participating in the value chain of new energy and renewable energy. The Group's units also proactively update and adjust strategies and long-term plans to suit new trends.
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| Ca Mau Fertilizer Production Line. (Source: PVN) |
In parallel with the orientations, PetroVietnam has implemented long-term scientific research programs to serve the Group's operations, such as the Program for supplementary basic research, applied research to assess potential, increase oil and gas reserves with new technology and advanced technical solutions to develop and exploit oil and gas fields to ensure economic efficiency; Program for research, assessment of impacts and influences of renewable energy development and energy transition on the Group's development strategy and response solutions...
Units within PetroVietnam also proactively build research programs in areas of strength, in line with the transformation orientation and development strategy of the unit.
Not only stopping at research and preparation, PetroVietnam has gradually participated and had initial successes in shifting towards new trends. For example, PTSC is the pioneer and currently the most capable general contractor in Vietnam in the field of GHG, quickly participating in the supply chain of design, production and supply of GHG equipment for many partners and large projects in the world; PV GAS is the pioneer and only unit in Vietnam currently importing and trading LNG; PVOIL participates with partners to deploy the installation of electric vehicle charging stations at gas stations; production and research units such as VPI, BSR, PVFCCo, PVCFC... also constantly research and launch new products and materials with high value, such as: thermoformed PP plastic granules TF4035 with many superior properties, high applicability and environmental friendliness; High-quality petroleum products for the military such as Jet A-1K, DO L-62, RON 83; successful production of Carbon Nano Tubes (CNT) from CO2-rich natural gas; slow-release fertilizers coated with nano materials; lubricants containing additives based on Graphene material, helping to reduce fuel consumption and emissions...
Units within the Group have also continued to promote investment in facilities and infrastructure, promote cooperation and research with domestic and international partners to implement strategic orientations... In the spirit of "One team, one goal", the entire Group works together to realize the goal of developing PetroVietnam into a national energy industry group.
It can be said that throughout the development process, PetroVietnam has always been at the forefront in contributing to the economy and effectively supporting the Government in ensuring national energy security and the security of the Fatherland's seas and islands.
With the role, position and mission of “Energy for development”; with the attention, close direction and facilitation of the Party and Government, especially through the orientation for the Group’s development in the new period, PetroVietnam is ready and confident to pioneer the new trend to successfully transform into a national energy industry group; playing an important role in implementing the national energy strategy, synchronously and in line with the country’s economic, social and environmental development goals.
Source: https://baoquocte.vn/petrovietnam-tu-tin-tien-phong-trong-xu-the-phat-trien-moi-286308.html
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