On the afternoon of January 10, Prime Minister Pham Minh Chinh attended a conference to review the accomplishments of the Vietnam National Oil and Gas Group (Petrovietnam) in 2022 and discussed the tasks for 2023. During this event, General Secretary Nguyen Phu Trong conveyed his congratulations to Petrovietnam for its remarkable achievements in 2022 by sending flowers as a gesture of recognition.

Prime Minister Pham Minh Chinh attended the conference to review the work in 2022 and deploy the tasks in 2023 of Petrovietnam – Photo: VGP/Nhat Bac

Attending the conference were esteemed individuals, including members of the Party Central Committee such as Minister of Industry and Trade Nguyen Hong Dien, Deputy Head of the Standing Committee of the Central Committee for Internal Affairs Vo Van Dung, Chairman of the Committee for Management of State Capital at Enterprises Nguyen Hoang Anh, and Chairman of the Hanoi City People’s Committee Tran Sy Thanh, who is also a former Secretary of the Party Committee and Chairman of the Board of Members of Petrovietnam.

Additionally, Mr. Nguyen Long Hai, an Alternate member of the Party Central Committee and Secretary of the Party Committee of the Central Enterprise Division, was also present. The conference was further attended by leaders from various departments, ministries, branches, and central agencies.

Petrovietnam CEO Le Manh Hung introduced to Prime Minister Pham Minh Chinh the overview of oil and gas activities in Vietnam – Photo: VGP/Nhat Bac

Maintaining the position of the highest-value brand in Vietnam

According to Petrovietnam’s CEO, Le Manh Hung, despite facing numerous difficulties and challenges in 2022 that significantly impacted its operational fields, Petrovietnam demonstrated its commitment to upholding tradition, courage, and the thorough implementation of Party and State policies. With the direct guidance of the Prime Minister, Petrovietnam showcased unity, discipline, responsibility, and successfully overcame obstacles. The company implemented comprehensive and effective solutions, leading to remarkable achievements across various areas.

Petrovietnam CEO Le Manh Hung reports on the Group’s operations and business – Photo: VGP/Nhật Bắc

All output and business targets in the Group’s five fields have surpassed the annual plan and achieved significant growth compared to 2021, ranging from 3% to 26%. This outstanding performance has set numerous new records in the 61-year history of Petrovietnam. The brand value of Petrovietnam in 2022 is expected to reach nearly 1.3 billion USD, solidifying its position as Vietnam’s most valuable brand.

In particular, oil production exceeded the annual plan by 2 months and 11 days, reaching 10.84 million tons in 2022, surpassing the plan by 24% compared to 2021. Domestic oil exploitation also exceeded the annual plan by 2 months and 18 days, reaching 8.98 million tons in 2022, exceeding the plan by 1.94 million tons (28% over) compared to 2021. This remarkable achievement reflects the Group’s efforts in maintaining and stabilizing oil production despite the declining output in most of the current blocks/fields.

Thanks to these achievements, the Group successfully fulfilled the target assigned by the Prime Minister, ensuring that the Vietnam National Oil and Gas Group never experiences energy shortages, particularly in gasoline and oil, for the purposes of construction and national defense.

The year 2023 holds significant importance as a pivotal year, playing a crucial role in generating momentum for the subsequent years to successfully achieve the goals of the five-year plan 2021-2025. However, the international and domestic situation is forecasted to remain fast-paced, complex, unpredictable, and even challenging, placing great pressure on the Group’s management and administration.

With a determined commitment to fulfilling the assigned tasks to the fullest, the Group has formulated a plan for 2023 with higher goals and increased determination compared to the 2022 plan. The Group has set revenue and consolidated profit targets of 677.7 trillion VND and 34 trillion VND, respectively (excluding Nghi Son Refinery and Petrochemical Company), and aims to contribute 78.3 trillion VND to the State budget.

To successfully accomplish the tasks and targets of the 2023 plan, Petrovietnam has taken proactive measures, implementing synchronized, scientific, and flexible solutions across various areas such as mechanisms, policies, corporate governance, financial management, investment, market strategies, science and technology, training, and team development.

Prime Minister Pham Minh Chinh warmly praised, congratulated, and acknowledged the achievements and contributions of the Oil and Gas Group in 2022 to the achievements and results of the whole country – Photo: VGP/Nhat Bac

Achieve many records in difficulties and challenges

Speaking at the conference, Prime Minister Pham Minh Chinh, on behalf of the leaders of the Party, State, and Government, expressed warm praise, congratulations, and recognition of the achievements and contributions made by the Oil and Gas Group in 2022. He acknowledged the Group’s significant role in the overall achievements and results of the country, particularly in maintaining macroeconomic stability, controlling inflation, promoting growth, and ensuring key balances.

In 2022, amidst internal and external difficulties and “dual” challenges, the Group successfully carried out increasingly heavy and frequent tasks. It actively addressed pending issues and effectively responded to unexpected problems, such as local gasoline shortages.

The Prime Minister highlighted several records achieved by the Group in 2022. These include the record-breaking crude oil production of 8.98 million tons, surpassing the annual plan by 28%. Another record was set in the production and export of nitrogenous fertilizers, with 1.88 million tons produced (exceeding the plan by 17%) and 606 thousand tons exported, contributing to 37.4% of the total fertilizer export value of 1.08 billion USD. This achievement transformed the country from an importer to a high-value fertilizer exporter. Furthermore, the Group achieved a record in petroleum production, including Nghi Son and Dung Quat refineries and petrochemicals, meeting approximately 75% of the domestic petroleum demand.

The Prime Minister stated that the achievements and results are thanks to the Group’s maintaining, consolidating, and promoting solidarity and unity; the efforts of the units and the staff and employees in the Group; coordination with ministries, branches, agencies, localities… – Photo: VGP/Nhat Bac

The Group also achieved remarkable records in various aspects. It achieved a record-breaking total revenue of 931.2 trillion VND (equivalent to nearly 40 billion USD) in the past 61 years, affirming its position as a leading state-owned economic group with significant scale and influence on the country’s economy. Additionally, it achieved a record consolidated pre-tax profit of over 82 trillion VND (nearly 3.5 billion USD) and made a record payment to the State budget with 170.6 trillion VND (over 7.2 billion USD), accounting for approximately 9.6% of the total State budget revenue.

Furthermore, the Group received recognition for its outstanding works. It had three works awarded the Ho Chi Minh Prize and three works awarded the State Prize for Science and Technology. Additionally, seven works received VIFOTEC awards. These achievements contributed to the increased brand value of the Group and further consolidated the trust and confidence of the Party, State, and the people in the Group.

In addition to its impressive records, the Group effectively addressed backlog projects and initiatives in 2022. It successfully handled and put into operation power projects such as Song Hau 1 and Thai Binh 2. The Group also addressed issues and expedited the progress of projects like Long Phu 1 thermal power project, Block B – O Mon gas power project chain, and the upgrade and expansion of Dung Quat oil refinery, etc.

The Prime Minister asked the Oil and Gas Group to promote tradition, solidarity, efforts, and determination to overcome all difficulties, overcome shortcomings and inadequacies, and strive to exceed production targets. Export and business in 2023 – Photo: VGP/Nhat Bac

The Group has proactively reported to relevant agencies to address challenges in mechanisms and policies, especially since the Government has submitted the Petroleum Law in 2022 for approval by the National Assembly.

In analyzing the causes of the achievements and results, the Prime Minister highlighted the Group’s ability to maintain, consolidate, and promote solidarity and unity. The efforts of the units, staff, and employees within the Group, as well as the coordination with ministries, branches, agencies, and localities, have also contributed to the success.

Reflecting on the operational process and achievements of 2022 and previous years, the Prime Minister emphasized important lessons learned. In the face of difficulties, challenges, and complexity, unity and solidarity become even more crucial. The heavier the tasks, the greater the need for collective efforts, bravery, perseverance, and a willingness to overcome obstacles. The Prime Minister emphasized the importance of daring to think, daring to act, and daring to break through, all while prioritizing the national interest.

Furthermore, the Group has adhered to the leadership, guidelines, and principles set forth by the Party. It has followed the management, policies, and laws of the State, as well as the direction and administration of the Government, the Prime Minister, and central ministries/sectors. The Group has demonstrated flexibility, dynamism, proactivity, and creativity in its organizational implementation. It has fostered effective coordination with agencies, businesses, and partners. The Group has also achieved a harmonious and rational combination of internal and external forces, recognizing the fundamental, strategic, long-term, and decisive role of internal forces, while acknowledging the importance of external forces as an important and transformative factor.

The Prime Minister awarded the Labor Medal of all grades to collectives and individuals with outstanding achievements in their work – Photo: VGP/Nhat Bac

Ensure an adequate energy supply for sustainable development.

As per the statements made by the Prime Minister, it is anticipated that 2023 will pose ongoing difficulties and challenges that are highly unpredictable. The prevailing circumstances indicate a landscape where challenges outweigh opportunities and advantages, primarily due to fierce strategic competition, global inflation, and imminent threats to energy security and food security. Moreover, the energy market, crude oil prices, and petroleum products are expected to remain volatile, while the global transition towards sustainable energy and the abnormality of climate change further compound the complexities. These factors will inevitably exert substantial influence on the production, business activities, and overall development of the Group.

However, fortified by the Group’s accumulated experience, maturity, and valor acquired over its impressive 61-year journey, the Prime Minister recommends that the Oil and Gas Group wholeheartedly embrace its cherished traditions, foster unwavering unity, and exhibit resolute determination to overcome all obstacles. It is paramount for the Group to address any existing weaknesses and deficiencies while striving to surpass the envisaged production and business targets set for the year 2023.

The Prime Minister highly appreciated the Group’s 2023 motto “to manage volatility, expand the scale, accelerate digital transformation, shift models, improve productivity, reinvent business” – Photo: VGP/Nhat Bac

The pronouncements made by the Prime Minister regarding the Group’s 2023 motto, “to manage volatility, expand the scale, accelerate digital transformation, shift models, improve productivity, and reinvent business,” were met with utmost appreciation. In light of this, the Prime Minister strongly recommended that the Group, alongside the entire oil and gas industry, concentrate their efforts on the effective realization of the principal objectives.

First and foremost, it is imperative to ensure an uninterrupted and steady supply of energy for the secure and robust development and operation of oil and gas projects, facilities, and infrastructure. By doing so, a pivotal contribution will be made towards guaranteeing energy security and fulfilling the nation’s demands for petroleum, electricity, and fertilizer.

The second goal revolves around the successful attainment of production and business targets in 2023, with a determined drive to match or surpass the accomplishments of the preceding year.

The third objective entails promoting investment and overall growth throughout the Group. In this regard, it is crucial to set forth ambitious aims in 2023, outlining the unwavering commitment to initiate key projects and explore and propose novel ventures that harness the Group’s strengths.

Furthermore, there is a pressing need to supplement and refine the establishment of institutions, mechanisms, and policies, as well as development strategies within the energy sector. These efforts should align with emerging trends and encompass the formulation of scenarios to address unforeseen challenges. Research into new energy projects, such as offshore wind power, should also be actively pursued.

Lastly, close collaboration with the Ministry of National Defense, the Ministry of Public Security, and relevant agencies is of utmost importance in implementing plans that ensure national defense, security, and economic stability concerning oil and gas activities. This collaboration should be approached with flexibility, tailored to specific circumstances, while upholding the principles of independence, sovereignty, and territorial integrity.

Ten main groups of tasks and solutions in 2023

To address the aforementioned objectives, the Prime Minister underscored ten fundamental groups of solutions:

1. Thoroughly and effectively implementing socio-economic development tasks for 2023, in accordance with Party, National Assembly, and Government resolutions, conclusions, and directions. This involves formulating comprehensive plans for the Group and its individual units, organizing implementation, inspection, and supervision.
2. Focusing on building and developing the Vietnam National Oil and Gas Group as the cornerstone of the oil and gas industry, endowed with robust financial and technological capabilities and high competitiveness domestically and internationally. This contribution is vital to the nation’s construction, development, and defense efforts.
3. Prioritizing digital transformation, energy transition, and the development of renewable energy, recognizing Vietnam’s considerable potential in these areas, as well as global trends and the Group’s favorable conditions and foundations for implementation.
4. Concentrating on strengthening the Party, enhancing organizational structures, and continually improving corporate governance quality. This entails reinforcing organizational frameworks, cultivating a competent and efficient workforce, fostering unity, consensus, and a willingness to think and act boldly. Additionally, intensify the fight against corruption, negative practices, and wastefulness.
5. Implementing a range of financial solutions, regularly reviewing and updating the actual progress of project disbursements to meet planned investment needs.
6. Implementing investment solutions with focus, precision, and alignment with emerging trends and fields that exploit diverse potential, exceptional opportunities, and competitive advantages.
7. Implementing solutions for production, business, and market activities, actively creating and nurturing markets, ensuring accurate information and forecasts as a basis for planning and executing suitable production and business strategies. Furthermore, enhancing and expanding the oil and gas value chain from supply to production to consumption, establishing robust connections from input materials to output products. Diversifying markets, products, and supply chains is also crucial.
8. Implementing solutions for training and human resource development, wage policies, and establishing appropriate salary and welfare frameworks that harmonize with industries and fields while accounting for international factors to maintain competitiveness. Given the specialized qualifications and technical expertise required for oil and gas workers, it is essential to ensure specificity and market competitiveness with an international outlook.
9. Implementing solutions for science and technology, promoting research, application, technology transfer, and digital transformation in the oil and gas industry’s development. Cultivating a team of highly qualified and dedicated scientific and technological personnel to spearhead advancements in these fields.
10. Implementing solutions for safety, environment, and sustainable development, adhering to Vietnamese regulations on safety assurance and environmental protection. Engaging in research to enhance product quality and create environmentally friendly alternatives.

Furthermore, actively and closely coordinating with relevant agencies in defense, security, and foreign affairs, particularly regarding the exploration and exploitation of oil and gas in deep-water and offshore areas, to fortify national sovereignty and territorial integrity in the East Sea and the South China Sea. Islands.

Lastly, reinforcing corporate culture by concretizing the contents established at the National Conference on Culture, enabling Petrovietnam to continually promote values such as solidarity, aspiration, intelligence, professionalism, love, and cultural significance. The Prime Minister emphasized the importance of communication efforts to inspire, motivate, and ignite a new developmental spirit among the people and business community in pursuit of a strong, prosperous, warm, and happy nation.

In response to the recommendations from the Vietnam National Oil and Gas Group and its member units, the Prime Minister assigned specific tasks to ministries and departments in Notice No. 114/TB-VPCP, dated September 29, 2022. The Prime Minister urged ministries and agencies, particularly the Ministry of Industry and Trade and the State Capital Management Committee, to promptly address petitions within their jurisdiction and report any matters exceeding their authority to competent authorities.

The Prime Minister also called on ministries and departments to identify and support Petrovietnam in achieving the targeted tasks for 2023. This support extends beyond the Oil and Gas Group to encompass the entire nation, ensuring national energy security and fostering economic development.

“The government and agencies stand alongside our comrades, sharing in difficulties, challenges, and hardships, encouraging and acknowledging achievements, and resolving obstacles and impediments,” emphasized the Prime Minister.

According to the Government newspaper