An oil rig of Petrovietnam (Photo: VNA)
Hanoi (VNA) - Deputy Prime Minister Le Minh Khai has recently signed a decision approving the restructuring scheme of the Vietnam Oil and Gas Group (Petrovietnam) until the end of 2025.
The goal of the scheme is to build and develop Petrovietnam into a leading energy conglomerate in the country and the region, in line with new development trends, the fourth Industrial Revolution, green transition, digital transformation and new energy transition.
The group will play a pivotal role in ensuring national energy security and fulfilling its functions, tasks, and responsibilities as stipulated by the Petroleum Law and its organisational and operational regulations. It will possess modern technologies, management expertise, and high specialisation that are suitable for Vietnam's conditions, thus ensuring energy and food security, and protecting national sovereignty at sea.
Petrovietnam and its subsidiary companies, especially those operating in the core areas, will be consolidated in order to create a value-added chain in the petroleum industry.
It will be restructured under the economic conglomerate model, including the parent company Petrovietnam and its subsidiary companies, in line with development goals, strategies and sectoral master plan approved by the Politburo and the Prime Minister.
The group will continue with restructuring efforts, focusing on maintaining core areas and primary business sectors, divesting all capital from areas and enterprises that are not part of the core business, carrying out financial restructuring from self-generated and additional resources.
It is expected to continue maintaining its firm position as Vietnam's leading supplier of various gas sources; promote oil refining, deep processing of gas products and high-quality petroleum services; develop renewable energy, clean and new energy sources such as offshore wind power, marine energy, H2, NH3, in line with the approved directions by competent authorities and orientations to energy transition and environmental protection.
Any issues or obstacles related to projects, works or businesses will be actively resolved in line with market principles, legal regulations and approvals from the relevant authorities.
It will strive to have its total revenue grow by 3-6.5% annually on average, increase its revenue to the State budget by around 10%, and join the construction of renewable energy power plants, contributing to the development of the renewable energy industry.
According to the scheme, Petrovietnam will continue to operate as a single-member limited liability company wholly owned by the State, in accordance with Decision No. 1479/QD-TTg dated November 29, 2022, issued by the Prime Minister.
The subsidiary units will remain as follows: PVCollege (Petrovietnam College) will be maintained, and its operational efficiency will be enhanced. The Vietnam Petroleum Institute (VPI) will also be retained and improved for better performance. The organisational mechanisms will be studied and refined to align with regulations. A feasible plan will be developed for the transfer/restructuring of Petrovietnam University (PVU) at an appropriate time. The Petrovietnam branch - Southwest pipeline operating company will be dissolved, in accordance with orientations to the capital contribution in Block B - O Mon.
By the end of 2025, most of the member enterprises will be joint-stock companies, with streamlined organisational structures, strong financial capacity, efficient operations, and modern technological and production capabilities that are on par with countries in the region.
The member enterprises with a large scale, efficient operations and competitiveness in the region and the world in Petrovietnam's core business areas will also be consolidated and developed./.
