Speaking at the opening of the Conference, Mr. Hoang Quoc Vuong - Petrovietnam Chairman of the Board of Directors emphasized: Oil and gas exploration and production has always been one of the core areas, making great contributions to the accomplishment of the development goals, plans and strategies of the Group in particular and the country in general. Therefore, investment in exploration and production has always been given top priority. Petrovietnam is always ready in terms of resources and potential to carry out drastic and breakthrough plans for exploration and production.
Overview of the Conference
2022 is a special year for the Oil and Gas industry, marking an important milestone in the field of Oil and Gas Exploration and Production with the National Assembly passing a new Petroleum Law on 14th November 2022 and taking effect from 1st July 2023. The Petroleum Law 2022 is a general legal framework for the Oil and Gas industry. It reduces the overlap between laws in the oil and gas activities, is a necessary legal basis for more efficient production of oil and gas resources, and contributes to increasing state budget revenue in the context of forecasting that many oil and gas fields in the final stage of life will switch to the full production period in the coming years.
In that context, the Oil and Gas Exploration and Production Conference 2023 was held with the main goal of implementing the oil and gas exploration and production plan 2023 and solutions for the medium-term period (from 2023 to 2025) to successfully implement the plan to increase reserves and production for the period of 2021-2025.
Mr. Hoang Quoc Vuong - Petrovietnam Chairman of the Board of Directors delivers speech to open the Conference
In 2022, the reserves increased to 16.97 million tons of oil equivalent; domestically produced crude oil reached 8.94 million tons, exceeding 27% of the plan; foreign produced crude oil reached 1.86 million tons, exceeding 9% of the plan; Gas export reached 8.08 billion m3, exceeding 7% compared to 2021; The decline in crude oil production both in the country and abroad was almost negligible compared to 2021, although in previous years, the reduction coefficient had always been around 10% a year. They were impressive results of Petrovietnam in the extremely difficult and complicated situation at the global scale in terms of geopolitics, energy and socio-economic transformation trend.
2023 is forecasted to be a difficult year, not only for the oil and gas sector but also for all economic sectors. Petrovietnam needs a lot of research and ideas from all experts in the field of exploration and production. With lessons to overcome difficulties in the years 2020 - 2021 as well as practical experiences successfully applied in 2022, and especially with the proposed solutions for 2023, Petrovietnam leaders believe the tasks set for the exploration and production sector in 2023 and the following periods will be completed as planned, contributing to the fulfillment of the Group’s overall production and business targets.
Petrovietnam President and CEO Le Manh Hung and Chairman of Vietnam Petroleum Association Nguyen Quoc Thap discuss at the Conference
Continuously in two sessions, reports were presented by the Group’s Divisions at the Conference: Oil and Gas Exploration and Production, Oil and Gas Contract Management; along with the reports by representatives of Vietsovpetro, PetroVietnam Exploration Production Corporation (PVEP), Rusvietpetro.
Representatives of the Group’s Divisions present reports on Petrovietnam’s plan for exploration and evaluation, plan for production and management of offshore investment
Mr. Tran Thanh Tung - Deputy Director General of Oil, Gas and Coal Department, Ministry of Industry and Trade speaks at the Conference
PVEP General Director Tran Hong Nam speaks at the Conference
Dr. Phan Ngoc Trung - Head of Advisory and Review Committee of Vietnam Petroleum Association speaks at the Conference
The conference evaluated the results of exploration and production in 2022, exchanged and discussed a number of regulations on contract management, exploration and production development relating to the Petroleum Law 2022; activities in the oil and gas sector in the context of the Group’s energy transition, in line with Vietnam’s commitment to neutralizing CO2 by 2050 as well as contents related to domestic and foreign investment.
Representatives of the Group’s Divisions and subsidiaries exchange and discuss at the Conference
Also at the conference, some key contents were discussed and exchanged regarding the Exploration and Production Plan for 2023 and solutions to successfully implement the goal of increasing reserves as well as the production plan for 2021-2025 at the projects; the influence and impact of the Government’s mechanisms and policies on domestic oil and gas activities and the implementation of oil and gas projects abroad; as well as potential research in the field of exploration and production.
Petrovietnam Vice President Le Ngoc Son and heads of Divisions run the Conference
Dr. Nguyen Quoc Thap - Chairman of Vietnam Petroleum Association, said that in the past years, the exploration and production activities of Petrovietnam were at the peak stage and had not yet faced the problem of coping with the final life stage as present. Petrovietnam had to develop appropriate scenarios to receive fields with expired contracts or enter the stage of full production. Dr. Nguyen Quoc Thap affirmed that Vietnam Petroleum Association would always accompany Petrovietnam to continue to research technical solutions as well as continue to increase the operational efficiency of the projects, make the most of the country’s resources.
Dr. Nguyen Quoc Thap - Chairman of Vietnam Petroleum Association speaks at the Conference
As said by Petrovietnam President and CEO Le Manh Hung at the conference, in order to complete the plan for the 2021-2025 period, the E&P field must focus on short-term solutions and at the same time have specific strategy to implement long-term solutions, in terms of project management, as well as financial, investment, mechanism and policy solutions…
President and CEO Le Manh Hung especially emphasized solutions to managing portfolio of investment projects, list of contractors, blocks/ fields; promoting and ensuring synchronous progress of field development projects, especially key gas projects; actualize mechanisms and policies to enhance investment attraction; adjusting the conditions of signed oil and gas contracts to encourage contractors to develop small and marginal fields… In addition, the Group’s President and CEO paid attention to the solutions to enhancing high-quality human resources, applying scientific and technical advances, accelerating the process of digital transformation in management and administration.
Petrovietnam President & CEO Le Manh Hung delivers speech to direct the Conference
As affirmed by Deputy Minister of Industry and Trade Dang Hoang An at the conference, oil and gas is a large economic sector, playing an important role in socio-economic development, as well as contributing to ensuring national energy security and protecting the country’s sovereignty. In which, oil and gas exploration and production is the core activity in the core fields of Petrovietnam. In the past time, despite facing many difficulties and challenges, there has been development and remarkable results, making great contributions to the Group’s overall success. Deputy Minister of Industry and Trade commended all leaders and employees, those who work in the field of oil and gas exploration and production of Petrovietnam; at the same time, he emphasized a number of key tasks in the E&P field that Petrovietnam should focus on.
Deputy Minister of Industry and Trade Dang Hoang An speaks at the Conference
According to Petrovietnam Vice President Le Ngoc Son as concluding the conference, with specific exploration and production targets and plans developed for the period of 2021-2025, the pressure to the 2023-2025 period is huge for activities of increasing reserves, developing new projects; especially gas projects are not only related to exploration and production but also related to energy security and gas supply for the Southeast and Southwest regions.
Petrovietnam Vice President Le Ngoc Son affirms the E&P team will join hands and make efforts to over-fulfill the set targets, maintain production levels and increase reserves achieved in 2022
Regarding mid-term and long-term solutions, Petrovietnam will accelerate the implementation of work items for exploration and production, field development, and take into account the options for exploration and full production of existing areas; focus on the key gas project Block B in the immediate future, strive to achieve FID in 2023, as well as promote solving problems, put Ca Voi Xanh gas field into development as soon as possible; effort to coordinate with the drafting agency to complete the development of the Law guiding documents to create an open corridor, promote the advantages of the Petroleum Law 2022. For opinions exchanged at the Conference, the Group records, considers and adds to the implementation plan in the coming time.
Vice President Le Ngoc Son affirmed that, with the support of the Group, the E&P team would join hands and strive to over-fulfilled the set targets, maintain the level of production and reserve increase achieved in 2022.