Vietnam Oil and Gas Group has a new name

Vietnam Oil and Gas Group becomes Vietnam National Industry and Energy Group (Petrovietnam), according to the Prime Minister's decision.

The Prime Minister has just decided to transform the Vietnam Oil and Gas Group into the Vietnam National Industry and Energy Group (Petrovietnam). The decision takes effect from today (April 9).

Under the new designation, Petrovietnam will develop on three pillars: energy - industry - services, in which energy remains the core.

Petrovietnam said that with this new name, they will not only be a traditional oil and gas and energy group, but also a center of industry, services and a pillar of the national energy. Along with that, the name change will ensure that the organization and operation of the group are consistent with the orientation of the Politburo, the energy transition trend and the commitment to Net Zero by 2050.

Deputy Prime Minister Bui Thanh Son presents the Prime Minister's decision to change the name to Petrovietnam leaders. Photo: Dinh Chung

According to the Oil and Gas Industry Development Strategy, Vietnam aims to take advantage of the industry's strengths to develop renewable energy and new energy industries such as offshore wind power for export, hydrogen, ammonia, etc.

At the year-end conference last year, Prime Minister Pham Minh Chinh and leaders of the Government and ministries performed the group transformation ceremony. At the same time, Petrovietnam has built and completed a development strategy, researched and built a new brand identity, and completed related procedures to operate under the new name.

Same day, Petrovietnam signed an agreement with the Malaysian National Oil Company (Petronas) to extend the Petroleum Product Sharing Contract (PSC) at block PM3 CAA for another 20 years, from 2028-2047.

Block PM3 CAA is located in the overlapping area between Malaysia and Vietnam. The oil and gas product sharing contract between the two parties was first signed in 1989. By 1992, Petrovietnam and Petronas were assigned to represent the host country in implementing oil and gas activities in this area.

Currently, this oil and gas block is operated by a consortium of contractors led by Hibiscus Oil & Gas Malaysia Ltd. (accounting for 35%). The remaining two participants include PVEP (a member of Petrovietnam - 30%) and Petronas Carigali Sdn. Bhd. (35%).

The current production capacity of the PM3 CAA block is about 20,000 barrels of oil and about 200 million cubic feet of gas per day (equivalent to 5.7 million m3 of gas). By the end of 2024, the project has produced about 250 million barrels of oil and 1,600 billion cubic feet of gas (equivalent to 43 billion m3). Of which, nearly 25 billion m3 of gas is supplied to Vietnam, contributing to the formation and development of the Ca Mau gas - electricity - fertilizer complex.

The project has a total investment cost of about 10 billion USD, generating oil and gas revenue of about 24.8 billion USD, bringing economic value and contributing significantly to the state budgets of the two countries.

Last year, Petrovietnam set a record for total revenue of the entire group, surpassing the 1 quadrillion VND mark, a 36% increase compared to the pre-Covid-19 period (2019). This figure is equivalent to about 9% of the country's total GDP. The contribution to the state budget reached 165,000 billion VND, accounting for nearly 9% of the country's total budget revenue.

Of which, the parent company's revenue reached VND270,000 billion, up 237% compared to the pre-Covid-19 period. The parent company's pre-tax profit reached VND35,100 billion, up 45%.

Thus, it took the Group only 4 years to exceed the financial target of the 5-year plan. Specifically, the total revenue of the whole group in 4 years (2021-2024) reached 3.5 million billion VND, exceeding the 5-year plan by 6%. The contribution to the State budget during this period reached 600,000 billion VND, exceeding the 5-year plan by 30%.

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