Deputy PM urges PetroVietnam to boost exploration, exploitation capacity

Hanoi (VNA) - Deputy Prime Minister Truong Hoa Binh has urged the Vietnam Oil and Gas Group (PetroVietnam) to enhance its capacity in petroleum exploration and exploitation to develop the marine economy in the new context.

At a meeting with leaders of the State-owned corporation on September 10, he called for it to accelerate the exploration of oil and gas to boost reserves while combining the exploration of oil and gas with surveys to assess deep-sea resources and minerals, especially those with large reserves of high value.

The Deputy PM asked it to take into account environmental factors and biodiversity protection when exploiting and processing oil and gas.

He said PetroVietnam must continue well enforcing Resolution No.41-NQ/TW on the development strategy of Vietnam’s oil and gas industry by 2025, with a vision to 2035 and effectively implementing the resolution adopted by the sixth plenum of the 12th Party Central Committee on the strategy for the sustainable development of Vietnam’s marine economy by 2030, with a vision to 2045.

Binh also requested that the group improve its corporate management, foster restructuring, and continue with equitisation and the divestment of State ownership in member companies, in accordance with plans approved by the Prime Minister. He also tasked the firm with seeking ways to meet domestic demand and ensure energy security and production effectiveness.

PetroVietnam needs to maintain stable production, speed up the progress of key projects, and identify ways to resolve issues at long-delayed and loss-making projects, for example the Dinh Vu polyester fibre plant, operated by its subsidy the PetroVietnam Petrochemicals and Textile Fiber JSC (PVTEX), and the Phu Tho ethanol project.

It also must develop plans to attract investment from investors and other private sources into its projects, he said, in particular a project on the development of infrastructure for the importation and sale of liquefied natural gas (LNG), and must cooperate with the power industry to create a supply chain and enhance investment competitiveness and effectiveness.

The Deputy PM praised the State-owned group for playing a crucial part in ensuring Vietnam’s energy security and being one of the economy’s key pillars.

Despite being challenged by various obstacles over the past several years, from changes of the top leadership, declining oil prices, decreasing oil exploitation to fierce competition from foreign rivals, the corporation has made all-out effort to control and reduce associated risks and fulfill goals, he said.

Also speaking at the event, PetroVietnam Director-General Le Manh Hung said since 2015, the group has been one of the major contributors to the State budget, making up around 9 – 11 percent of the annual State budget revenues. It also contributed about 10 – 13 percent of the Gross Domestic Product (GDP) annually; total consolidated asset reached 861.4 trillion VND (37.17 billion USD) as of the end of 2019, he cited.

He further noted that PetroVietnam posted total revenue of over 372 trillion VND in the first eight months of this year, in spite of dual impacts from COVID-19 and dropping global oil prices. It contributed 45 trillion VND to the State budget in the period.

The corporate has developed a plan in which it aims to cut over 9.3 trillion VND in costs, mainly managerial and production costs, this year. In the first eight months of the year, the firm saved more than 6.52 trillion VND, or 70.1 percent of the yearly plan, Hung said.

PetroVietnam has completed equitisation of member companies listed in the plan for the 2017 – 2020 period, including PetroVietnam Power Corporation (PVPower), PetroVietnam Oil Corporation (PVOil), and Binh Son Refining and Petrochemical (BSR). It has raised more than 16.44 trillion VND from the Initial Public Offerings (IPOs) of these firms, of which over 7.34 trillion VND has been contributed to the State budget, he said.

PetroVietnam has also divested its holdings in SSG Real Estate JSC and Long Son Petrochemical (LSP) to collect over 2.07 trillion VND, the general-director added./.