(Source: Petrotimes) – In the morning of July 4, Vietnam Oil and Gas Group (PVN) and its member companies held a meeting to partially sum up business and production in the first six months of 2013 and set out key tasks for the last six months.

Attending the meeting were members of the Board of directors, the Management board, the Party Standing Committee; leaders of departments and companies under the group. It was chaired by Mr. Phung Dinh Thuc – Chairman of the Board of members and Mr. Do Van Hau – General Director of PVN.
At the meeting, Head of the Planning board of PVN – Mr. Tran Quoc Viet reported the group’s business and production situation in the first six months of 2013. Generally, the whole group has completed the tasks and targets of the plan. Values contributed to the State budget exceeds 16.8% compared to the six-month plan, equivalent to over 11,9 trillion dongs ($570 million), which significantly means in the context of consecutive difficulties of the State budget revenues in the first six months of the year. Oil and gas operations in the East Sea are implemented according to the plan. Return on equity (ROE) of the group continues to remain high (average rate of consolidated net income after taxes reaches 8.4% on shareholders’ equity and 4.3% on total assets).
 

Mr. Phung Dinh Thuc – Chairman of the Board of members (right) and Mr. Do Van Hau – General Director of PVN (left)

Revenue from oil and gas services in the first six months reached 98,8 trillion dongs, making up 27% of the whole group’s total revenue. Most services exceeded revenue and profit-before taxes targets of the first six months.
Besides, the group has been actively implementing the restructuration plan in the 2012-2015 period according to Decision 46 which was approved. Expectedly in July 2013, the group will finish with approval the restructuration plans for member companies so they can have a clear orientation for development.
In the plan of the last six months of 2013, the group sets out 12 key solutions, in which: exploit about 12.37 million tons of oil equivalent, reach 331 trillion dongs in revenue, contribute 77,6 trillion dongs to the State budget, and at the same time strive to reach and exceed all other targets of the plan.
At the meeting, the group’s leadership asked representatives of member companies to report business and production situation in the first six months, raise their difficulties, problems and suggestions to find solutions together.
It is said by Mr. Tu Thanh Nghia - General Director of Vietsovpetro joint venture that Vietsovpetro has exceeded all the targets in oil exploitation, gas transmission, drilling, putting new wells into operation and financial targets. Oil exploitation reached 2,82 million tons. For gas transmission, Vietsovpetro is still the one of the group that has the highest revenue, reaching 48,3 trillion dongs. Mr. Tu Thanh Nghia proposed to the group’s leadership three requests as follow: improve oilfield development mechanism, push up development of Thien Ung oilfield and establish financial resources for development of Vietsovpetro’s oilfields.
Through the suggestions above, Chairman of the Board of directors of PVN Phung Dinh Thuc asked Vietsovpetro to research detailed solutions to develop the oilfields, in particular Bach Ho (White Tiger) oilfield, boost collection of gas, reconstruct Tam Dao 05 oil platform and develop oilfields in new areas.
PetroVietnam Exploration Production Corporation (PVEP) – a company in the upstream stage, increased reserves to 3,45 million tons of oil equivalent, petroleum exploitation reached 2,5 million tons, consolidated revenue reached 29,95 trillion dongs. PVEP’s leadership petitioned to be allowed to take in charge the works on Dai Hung 02 platform.
Mr. Tran Duc Chinh – Head of the Management Division of overseas contracts said that in the coming times, the group would cooperate with partners like Rosneft (Russia) to push up oil exploitation and ENI Group (Italy) for gas exploitation in several blocks. In his conclusion on exploration and exploitation works, PVN’s General Director Do Van Hau asked PVEP to speed up its projects to stabilize oil production in 2013.
 

In the oil processing sector, Chairman of the Board of members of Binh Son Refinery Ltd. Nguyen Hoai Giang raised a difficulty that this company was encountering: how can Dung Quat Oil Refinery develop and compete with a series of other refineries put into operation starting from 2018? Mr. Nguyen Hoai Giang also offered a solution: train specialists, optimize production, find new sources of crude oil for the plant, make plan to upgrade and expand the plant to increase production efficiency.
In the electricity generation sector, Mr. Vu Huy Quang – General Director of Petrovietnam Power Corporation (PV Power) cheerfully announced that the operation of PV Power in the first six months of 2013 was profitable, consolidate profit after taxes (exchange rate differences included) reached 123,3 billion dongs. He petitioned to the group to stably provide gas to Ca Mau Power Plant, come to an agreement with EVN on the handover of Phu Quy wind power and emigration for the construction of Dakring hydroelectric plant.
In the service sector, Petrovietnam Technical Services Corporation (PTSC) didn’t face fewer difficulties despite strong momentum in development in recent times. General Director of PTSC Phan Thanh Tung expressed his expectation to receive the group’s support to expand PTSC’s services out of the country, increase off-shore works and mechanical projects fo PTSC…
Speaking at the meeting, Mr. Phung Dinh Thuc – Chairman of the Board of members of PVN acknowledged the efforts of the companies that contributed to general success of the group over the last six months. He suggested to the companies currently exploiting oil in foreign countries such as Russia, Venezuela or taking in responsible fiber projects, Petrochemical Complex Project in Southern Vietnam, Block B Gas Project… to speed up progress. Regarding the solutions in the last six months of the year, Thuc emphasized the need to ensure safety of power plants, fertilizer plants and refineries. At the same time, Binh Son Refinery Ltd. must soon present to the group the plan to expand Dung Quat Oil Refinery; PVEP should push up new projects in Russia.
In his closing speech, General Director of PVN Do Van Hau asked leaders of member companies to focus on direction so by the end of 2013, the whole group’s revenue must exceed 700 trillion dongs, contribute over 160 trillion dongs to the State budget. Regarding the tasks in the last six months of the year, he emphasized that progress of thermal power plant projects such as Vung Ang 1, Thai Binh 2, Long Phu must accelerate. In addition, the whole group must also focus on social security activities and manufacturing cost reduction.

PVN’s targets in the first six months of 2013
* Increase oil and gas reserve: 16,5 million tons of oil equivalent.
* Total petroleum exploitation reaches 13,64 million tons; In which, crude oil exploitation reaches 8,34 million tons; gas exploitation reaches 5,30 billion m3.
* Produce and supply the national grid with 9,05 billion kWh; 828 thousand tons of fertilizer and 3,27 million tons of different kinds of gasoline.
* Total revenue of all member companies in the group reaches 364,3 trillion dongs.
* Contribute 82,8 trillion dongs to the State budget.
* Contribute 230 billion dongs to social security activities.
Member companies that completed the business and production plan
* Manufacturers: Vietsovpetro, PVEP, PV Power, BSR, PVFCCo all exceeded the plan’s targets.
* 10 companies whose consolidated revenue exceeded 115% of the six-month plan’s target: Vietsovpetro, PVEP, PV Power, BSR, DMC, PVI, PV Trans, PETROSETCO, PVC, DQS and PVMTC.
* 11 companies whose consolidated profit exceeded 115% of the plan’s target: PVEP, PV Gas, BRS, PV Oil, PVFCCo, PVCFC, PTSC, PV Drilling, PVI, PETROSETCO and PV Trans.
* 12 companies whose contribution to the State budget exceeded 115% of the plan’s target: Vietsovpetro, PVEP, PV Gas, BSR, PVFCCo, PVCFC, PV Drilling, PV Trans, PTSC, PVC, DQS and PVMTC.
* 11 companies have highly efficient business and production (average rate of consolidated profit after taxes on shareholders’ equity over 5%): PV Gas, PVCFC, PVFCCo, PVEP, PVDrilling, Vietsovpetro, DMC, PETROSETCO, BSR, PTSC, PV Oil
09/07/2013
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