PVN

Vietnam National Oil and Gas Group to play key role in ensuring national energy security

23/09/2022

Building Vietnam National Oil and Gas Group into a strong and effective economic group, key enterprise in ensuring national energy security, effectively and efficiently contributing to the cause of industrialization and modernization of the country, building an independent and self-reliant economy associated with active and proactive international integration... is one of the tasks and goals set by Prime Minister Pham Minh Chinh for Vietnam National Oil and Gas Group (Petrovietnam) at the meeting with the Group on 11th September morning.

Attending the meeting were Deputy Prime Minister Le Minh Khai and leaders of ministries and central agencies.

On the side of Petrovietnam, there were Chairman of the Board of Directors Hoang Quoc Vuong, President and CEO Le Manh Hung, members of the Standing Party Committee, the Board of Directors, Executive Management Board, heads of Divisions/ Administration Office, leaders of socio-political organizations, leaders of the Group’s subsidiaries.

Prime Minister Pham Minh Chinh visited and worked at Petrovietnam

The meeting was held in the form of face-to-face and online combination with the participation of employees at the bridge points of the subsidiaries, oil and gas projects, Vietnam’s offshore drilling rigs of and in the Russian Federation.

The meeting of Prime Minister Pham Minh Chinh with Petrovietnam

At the meeting, Prime Minister Pham Minh Chinh stated that strategic competition, inflation and recession existed in all countries in the world, so we had to unite and unify, “hold hands” to overcome difficulties. After more than 2 years of the Covid-19 pandemic, the whole country faced difficulties and sacrifices, including the oil and gas industry. However, looking back at the 47 years of establishment of Vietnam National Oil and Gas Group, after 35 renovations, the country has had many developments, including the important contribution of the industry. The Prime Minister said that, even in the context of a difficult world, we still ensured macroeconomic stability, inflation control, major balances, including the Group’s contribution with its role as the “Energy for development”.

On behalf of the Government, the Prime Minister praised and highly appreciated the oil and gas industry for the achievements that made an important contribution to the socio-economic development of the country. As said by the Prime Minister, the Group has a great role to the development of the country, using high technology, conducting scientific research, processing, supplying, trading and distributing.

Emphasizing the need to continue to maintain solidarity, unity, “holding hands together” to overcome difficulties, the Prime Minister asked the meeting participants to focus on assessing the world energy situation, forecasting the upcoming situation and determining the Group’s role, tasks and solutions for the country at that time in accordance with the spirit of the “energy for development”, contributing to building an independent, self-reliant economy associated with proactively and actively carrying out extensive, substantive and effective international integration, firmly protecting independence, sovereignty, territorial integrity, and implementing a foreign policy of independence, self-reliance, diversification, multi-lateralization, being good friend, reliable partner, responsible member of the international community…

President and CEO Le Manh Hung reported to the Prime Minister’s delegation on Petrovietnam’s business and production activities

At the meeting, on behalf of the Group’s leaders, President and CEO Le Manh Hung reported to the Prime Minister and the delegation as follows: In the past time, the Group strictly implemented the guidelines, policies and laws of the Party and State on socio-economic development... with the action motto of “Managing volatility, anticipating trends, connecting resources, promoting technology, promoting investment, developing sustainability” to lead and direct key tasks throughout the Group. The management of volatility was given particular concern by the Group, specifically (i) Actively kept abreast of macroeconomic fluctuations, executive direction of the Government, market developments, set goals and solutions for each area, in line with oil price movements, supplied crude oil, gas, petroleum refining and petrochemical products from time to time to make timely decisions in management; (ii) Focused on removing investment bottlenecks, determined to effectively handle difficult projects, initially achieved positive results; especially in the key projects that received direct instructions from the Party and State and so far have achieved positive results; (iii) Improving competitiveness and responding to the speed of energy transition, the Group focused on researching projects and investment opportunities of Petrovietnam’s advantages in the fields of processing and petrochemicals, chemicals and renewable energy; (iv) Digital transformation has been widely deployed, towards the effective application of advanced management forms of the enterprise resource planning (ERP) system, focusing on risk management in the production and business activities.

The Group continued to affirm its pivotal role in Vietnam’s economy, made important contribution to ensuring energy, food, economic security, national sovereignty, and important contribution to the State Budget: in 2021, the Group’s total payment to the State budget was 112.5 trillion dong, exceeding 80% of the year plan and increasing by 36% over the same period; In the first 8 months of 2022, the Group’s total payment to the State budget was 90.6 trillion dong, 40% higher than the 2022 plan and increased by 45% over the same period (6 months ahead of the 2022 plan).

The Group’s production and business activities in the first 8 months of the year continued to remain stable: The management of production output was applied synchronously, effectively and promptly with technical solutions/measures to increase output, maintain the rate of production with a high time factor and crude oil production exceeded 23% of the 8-month plan, equal to 84% of the 2022 plan, equivalent to the same period performance. The Group produced and supplied to the domestic market 1.22 million tons of urea, exceeding 10% of the 8-month plan and equal to 72% of the year plan, increased by 9% over the same period; produced 4.56 million tons of petroleum (excluding Nghi Son Refining and Petrochemical Company), exceeding 8% of the 8-month plan and equaling 74% of the year plan, increased by 5% over the same period, meeting the domestic demand.

Mr. Le Minh Khai, Secretary of the Party Central Committee, Deputy Prime Minister spoke at the meeting

After listening to the reports by the units’ representative leaders on the operation situation, production and business results... suggestions and recommendations to remove obstacles and difficulties, ensure the operational efficiency of the business in the coming time, representative leaders of ministries and central agencies highly appreciated Petrovietnam’s position, role and contribution during its 47-year history of construction and development, especially from 2020 onwards. Petrovietnam not only makes a great contribution to the State budget but also plays a pivotal role in ensuring energy, food security and national sovereignty over sea and islands. In any situation, Petrovietnam leaders and employees always show a sense of responsibility, high determination, promote the tradition, bravery and wisdom of the fire seekers to perform and fulfill well the tasks assigned by the Party and Government.

With such recognition and assessment, representative leaders of ministries and central agencies affirmed that in the coming time, they would work with Petrovietnam to focus on solving difficulties and obstacles so that the Group had the best conditions to develop, continue maintain its position as the pillar and core of the economy.

Concluding the meeting, Prime Minister Pham Minh Chinh assessed that in the past time, Vietnam National Oil and Gas Group experienced ups and downs and breakthroughs, but in general, achievements and results were more than limitations and shortcomings. In more than 2 years, i.e. 2020, 2021 and the first 8 months of 2022, with the spirit of determination, solidarity and consensus, the Group has strived to achieve the set goals and requirements.

Prime Minister Pham Minh Chinh: The most important goal and task for the Group is not to lack energy, especially petroleum, for the cause of national construction and defense, in accordance with the spirit of the “energy for development”.

The Prime Minister stated a number of experiences drawn from the Group’s activities:

Firstly, the more challenges and heavier task we face, the more solidarity, consensus, dynamism, creativity we should have, dare to think, dare to do, dare to breakthrough, for the common cause, for the national interest.

Secondly, we must firmly grasp the situation, stick to reality, come from reality, respect reality, and take practice as a measure to have a scientific thinking, methodology, and approach to solving problems reasonably and effectively.

Thirdly, staff continues to be the decisive factor, thus building, taking care of and developing staff at all levels is the most important mission.

Fourthly, timely reward, encourage and handle with the right people, on the right job for the individuals and groups having achievements and mistakes.

Fifthly, combine internal and external resources harmoniously, reasonably and effectively, in which internal resources (including people, mechanisms, policies, assigned assets...) are basic, strategic and long-term, decisive while external resources (such as capital, science, technology, management experience, human resource training...) are important and breakthrough.

Sixthly, be proactive in gradation, decentralization, personalization of individual responsibilities.

According to the Prime Minister, it is forecasted that the world, regional and domestic situation will continue to have opportunities and advantages intertwined with difficulties and challenges, but difficulties and challenges outweigh opportunities and advantages, especially for the oil and gas industry in the context of world energy market fluctuations.

The Prime Minister emphasized the viewpoint and guiding ideology, i.e. to combine harmoniously, rationally and effectively economic development with assurance of national defense, security, independence, sovereignty, territorial integrity, political stability, economic security, social order and safety, promotion of foreign affairs and integration; Harmonious, reasonable and effective combination of inheritance, stability, innovation and development; Develop quickly but sustainably, harmoniously, reasonably and effectively between oil and gas research, exploration, production and processing, production of petroleum products, chemicals, fibers…

Agreeing with the goals and tasks identified by the Group, the Prime Minister requested that in the context of many difficulties and challenges due to increasingly fierce strategic competition, complicated, unpredictable, unprecedented developments, the energy transition trend, mechanisms and policies were still limited, the market was affected, it was necessary for the Group to set out appropriate tasks and solutions in each period, each year and each quarter to effectively use resources, be proactive, flexible, creative and effective in performing assigned tasks.

The Prime Minister further emphasized the common goals and tasks, in which, the most important one for the Group is not to lack energy, especially petroleum, for the cause of national construction and defense, in accordance with the spirit of the “energy for development”. Currently, the Group is meeting 75% of the domestic petroleum demand.

The second common goal and task is to build Vietnam National Oil and Gas Group into a powerful and efficient economic group, key enterprise in ensuring national energy security, effectively and efficiently contribute to industrialization and modernization of the country, build an independent and self-reliant economy associated with proactively and actively carrying out substantive, extensive and effective international integration, technological innovation, especially advanced technology, digital transformation, diversification of supply chains in production and business, response to climate change, energy transformation, green transformation, contribute to ensuring social security.

Mr. Hoang Quoc Vuong, Secretary of the Party Committee, Chairman of the Board of Directors of Petrovietnam delivered a speech to receive the Prime Minister’s direction

Regarding specific tasks, the Prime Minister stated that, first of all, it was necessary to attach importance to and promote the building of a clean and strong Party with a streamlined apparatus, effective and efficient operation, restructure and improve the quality of staff. The human factor and staff are the decisive factors, so it is the most important specific task.

Along with that, it is necessary to determine and focus on definitively solving the problems that have persisted for many years, because the longer it lasts, the more wasteful and difficult it is. Recently, a number of issues related to Thai Binh 2 thermal power plant, Song Hau 1 thermal power plant... has been effectively solved. Currently, the relevant agencies and units are continuing to solve problems related to some other projects.

The next specific task is to contribute to the development of institutions, mechanisms and policies in line with the Group’s mission and task to ensure national energy, in accordance with the circumstances, conditions of the country and the specific situation, contributing to the prevention of corruption, negativity and waste, including the amendment of the Petroleum Law, preliminary review of 7 years implementation of Resolution No. 41-NQ/TW dated 2015 on strategic orientations for the development of Vietnam oil and gas industry to 2025 and vision to 2035.

According to the Prime Minister, a strong and important national enterprise cannot help but promote development investment, but must ensure the right direction, efficiency, and restructure production and business in accordance with the situation and tasks. Investment must have a focus, without spread, fragment, division, wastefulness.

The Prime Minister requested a harmonious, reasonable and effective combination between oil and gas exploration, production and the protection of national interests, independence, sovereignty and territorial integrity, especially at sea; Be more active in the production of equipment for the Group’s activities; Ensure confidentiality and economic security in accordance with the provisions of law.

In the situation of fluctuating, heavy, difficult and complicated tasks, it is necessary to choose the key work, finish work definitively, ensure efficiency, create inspiration, motivation and conditions to do other work.

As emphasized by the Prime Minister, once the Group is determined, it must be even more determined, once it makes efforts, it must make more efforts, once it tries, it must try harder, especially in innovation of thinking, methodology, approach and handling appropriate with issues in restructuring production and business, developing the energy industry including renewable energy, digital transformation, and diversifying supply chains.

Another task is to promote international cooperation, be persistent and steadfast on the issues of principle, but be flexible, creative and artistic in the implementation of specific tasks and solutions.

The head of the Government requested the ministries and branches to closely and effectively coordinate with each other and with the Group in handling the work. When they receive recommendations or proposals, they shall immediately and effectively deal with and solve them to the maximum extent within their assigned tasks, functions and powers. In case it is beyond their competence, they shall report to competent authorities for consideration and decision. The Government and the Prime Minister always stand by, listen and support for the Group’s development.

The Prime Minister basically agreed with the Group’s recommendations, many of which are being processed. The Prime Minister assigned the Deputy Prime Ministers, ministries and branches to carry out specific tasks, requesting to speed up the progress, do it definitively, effectively and substantively after the meeting. The Prime Minister continued to assign specific tasks to ministries and branches to deal with the remaining recommendations of the Group, and urgently submit them to competent authorities for consideration and decision, creating the best conditions for the Group’s development.

In particular, the Prime Minister assigned agencies to urgently organize an appraisal of the adjustment of investment policy in Dung Quat Oil Refinery Upgrade and Expansion Project in accordance with the law, and submit it to competent authorities for consideration and decision in September 2022.

Mr. Hoang Quoc Vuong, on behalf of the group’s leaders and employees, received souvenirs from Prime Minister Pham Minh Chinh

On behalf of Petrovietnam’s leaders and employers, Mr. Hoang Quoc Vuong - Secretary of the Party Committee, Chairman of the Board of Directors expressed his gratitude at the affection and concern of the Government leader and the Prime Minister to the Group. It was great encouragement to employees of the whole Group.

Receiving the direction of Prime Minister Pham Minh Chinh at the meeting, Mr. Hoang Quoc Vuong stated: In addition to the achieved results, the Prime Minister emphasized 6 lessons and 9 major tasks, assigned Petrovietnam to better perform its production and business tasks, providing more contribution to the socio-economic development and national security and defense. Specifically, it is to do well the assessment and forecast of the world and domestic energy markets to clearly define the position and role of Petrovietnam in ensuring energy security for the development of the country; build an independent and self-reliant economy in the context of international economic integration. Petrovietnam needs to step up the exploration and increase of oil and gas reserves, especially in the current period when the energy market is volatile.

The next task is to promote the development and improve the capacity to perform offshore technical services to serve the energy transition, for the development of the renewable energy industry. Another task is to focus on solving outstanding problems, new big arising problems promote investment and development with focus and efficiency.

With the attention, support, leadership and direction of the Party, Government and the Prime Minister, ministries and central agencies, Mr. Hoang Quoc Vuong affirmed and believed that Petrovietnam would perform and complete well the assigned tasks.

The Prime Minister and leaders of ministries and branches taken photos with Petrovietnam’s leaders

Some photos of the meeting:

Mr. Tran Van Son, member of the Party Central Committee, Minister, and Chairman of the Government Office delivered a Spech

Mr. Nguyen Manh Hung, member of the Party Central Committee, Minister of Information and Communications delivered a speech

Mr. Nguyen Hoang Anh, member of the Party Central Committee, Chairman of the Committee for the Management of State Capital at Enterprises gave a speech