New Spring - New Mindset

(PetroTimes) | 28/01/2025
In 2025, Petrovietnam celebrates half a century of operation. With a strong foundation built over the years and a proactive approach in embracing the new responsibility of energy transition, Petrovietnam is ready to step into a new spring. The Vietnam Petroleum Association (VPA) is also prepared with the mindset of Intelligence - Unity - and Development, accompanying the Group on this new journey.

Petrovietnam leaders presented a symbolic award recognizing the contributions and role of the VPA in promoting the development of Vietnam's petroleum industry.

Half a Century of Development and Proud Achievements

2025 is a significant year for Petrovietnam, marking the Group's 50th anniversary of establishment and development. This milestone is not only crucial for the Group and the industry but also tied to the transformation of the nation. It is proof of a long journey of persistence, overcoming countless challenges to become one of the key economic groups of the country.

In 1975, shortly after the reunification of the country, the Party and the Government decided to fulfill President Ho Chi Minh's vision – to exploit oil and gas to develop the nation's economy. At this time, the Vietnam Petroleum General Department (the predecessor of Petrovietnam) was established. This was a strategic and historical step, marking the birth of the Vietnamese petroleum industry. In the early years, with limited infrastructure, technology, and human resources, the General Department faced many difficulties. However, with strong determination and unwavering support from the Party and State, the oil and gas sector gradually overcame these challenges, laying a solid foundation for future development.

With the mission to ensure national energy security and serve as an economic pillar in the nation's development, Petrovietnam has achieved a miraculous development journey over the past 50 years. The Group has overcome countless challenges and transformed from "nothing" to "something," mastering the most advanced technologies and building a complete and integrated oil and gas industrial system. This system includes all stages, from exploration, drilling, extraction, transportation, refining, storage, distribution, services, and the import-export of oil and gas products to electricity and fertilizer production. Notably, the Group has mastered many advanced technologies in offshore exploration and extraction in complex geological conditions.

Over five decades, Petrovietnam has marked many significant achievements and faced numerous ups and downs. However, "the fire seekers" have stood firm through all crises, both external and internal. In every circumstance, Petrovietnam has fulfilled its mission, contributing to ensuring national stability through five key aspects: Energy security, Food security, Economic security, Maritime security, and Social security. These achievements have contributed to the socio-economic development of the country, confirming Petrovietnam’s vital role in ensuring national energy security.

In 1986, a special milestone was reached when the Bach Ho oil field in Vietnam’s continental shelf produced the first commercial crude oil. This event opened a new era for the Vietnamese oil and gas industry. To date, Petrovietnam has extracted 646 million tons of crude oil, an impressive number that reflects the Group's capacity and remarkable development in oil and gas exploration and extraction.

Alongside achievements in gas industry, petrochemicals, electricity, renewable energy, and high-quality oil and gas technical services, Petrovietnam has affirmed its role as one of the key pillars of the nation's economy. Petrovietnam contributes steadily to the national GDP at a rate of 10-13%, and contributes 9-11% of the total national budget. These figures not only reflect the scale of operations but also demonstrate the business efficiency and significant contribution of the Group to the country's socio-economic development.

Notably, Petrovietnam also takes on an essential mission in protecting the sovereignty of the nation's islands by constructing and operating offshore oil and gas facilities. Large offshore drilling rigs have become firm landmarks of sovereignty in the nation's waters. The modern seismic survey fleet, along with a dedicated offshore team, not only serve exploration and extraction but also play a key role in asserting and protecting the nation's maritime sovereignty. The constant presence of oil and gas facilities at sea, along with the work of thousands of engineers and workers, has been crucial in upholding and safeguarding the nation’s sovereignty.

The Role of the Vietnam Petroleum Association in the Development Journey

Looking back on the achievements of Petrovietnam's 50-year journey, the Vietnam Petroleum Association (VPA) is proud to have accompanied the Group for the past 15 years. Founded in 2009, the VPA has become a reputable social-professional organization, playing a vital role as a bridge between experts, scientists, and businesses in the oil and gas industry. As a professional scientific and technical association, the VPA continuously connects, gathers, and promotes the expertise of its members, top experts, and scientists in energy and petroleum.

Throughout its development, the VPA has built a vast network of over 1,200 members, including experts, scientists, engineers, and experienced managers in the industry. This valuable resource creates collective intellectual strength to actively contribute ideas and work responsibly to realize the goals and strategies for the development of the Vietnamese oil and gas industry.

Consultation and critique have been among the VPA’s key responsibilities, reflecting its role and contributions. Since the beginning of the 2022-2027 term, the VPA has actively participated in providing feedback on many important documents, including one resolution, two draft laws, eight decrees/circulars from the government and ministries, four technical reports, and two development strategies. Particularly, the VPA's contributions are always highly valued and adopted by the Party, National Assembly, Government, and ministries, contributing to the improvement of the legal framework for the development of the oil and gas industry.

In the fields of scientific research and technology transfer, the VPA has successfully organized numerous valuable scientific and specialized seminars, which have not only been academic forums but also proposed practical solutions to improve the industry's business efficiency. The VPA has also worked closely with member units to research and critique oil and gas reserves reports and development plans, significantly contributing to optimizing extraction operations and resource utilization.

The VPA's Petroleum Business Club has become a reputable organization and a bridge for effective cooperation between companies in the industry. Through the Club's activities, many business cooperation opportunities have been created, while also forming a community of oil and gas entrepreneurs with a high sense of social responsibility. These entrepreneurs not only lead in business but also take the lead in building a petroleum culture and promoting the responsibility of entrepreneurs for the sustainable development of Petrovietnam and the nation.

Human resource training and development is another significant contribution of the VPA. The association has actively participated in training from undergraduate to PhD levels at institutes and universities. Notably, the VPA has established close partnerships with domestic and international training organizations, facilitating experience exchange and technology transfer. The VPA has also worked effectively with other organizations such as the Union, Youth Union, and Veterans Association in the education of traditional values and the culture of "Petroleum Solidarity."

2024 marked a new development step for the VPA when it expanded cooperation with several partners. The VPA signed collaboration agreements with the Vietnam Mining Science and Technology Association, the Ca Mau Department of Science and Technology, the Vietnam Gas Group, and the Vietnam Petroleum Technical Services Corporation. These collaborations open new opportunities to disseminate knowledge, exchange experiences, and encourage research and application of science and technology to enhance the industry's operational efficiency.

Particularly, the VPA has actively contributed to strategic documents such as Resolution 41-NQ/TW and Conclusion 76-KL/TW of the Politburo on the strategic direction for the development of Vietnam's oil and gas industry. In addition, the VPA has also made significant contributions to the revised Electricity Law (2024) and other relevant legal documents concerning oil, gas, and energy sectors.

For its outstanding achievements, during the 15th anniversary celebration, the VPA was honored with a Certificate of Merit from the Ministry of Industry and Trade and VUSTA, along with a symbolic award from Petrovietnam for its significant contributions to the development of Vietnam's oil and gas industry.

To further strengthen its role in the new phase, the VPA has developed an action plan for 2025 and the following years. The focus will be on enhancing advisory capacity, criticism, and social assessment, particularly in key areas such as energy transition, sustainable development, and digital technology application in the oil and gas sector.

The VPA also aims to expand and improve the quality of its expert network, enhance international cooperation, and intensify scientific research and technology. In particular, the VPA will focus on developing digital platforms to effectively connect members, facilitating the exchange of knowledge and experiences within the petroleum community.

 

One of the VPA’s important tasks soon is to actively participate in realizing the objectives of Resolution 41-NQ/TW and Conclusion 76-KL/TW of the Politburo. Through this, the VPA will contribute to completing the legal framework to implement the strategic directions for Petrovietnam’s development. The VPA will also continue to play a proactive role in advising, critiquing, and supporting policies and significant projects of the industry, ensuring sustainable and efficient development.

In the context of the global energy transition, the VPA recognizes its important role in supporting and helping Petrovietnam adapt to new trends. The VPA will focus on researching and proposing technological solutions, and business models to help the Group confidently grasp opportunities and overcome challenges in its operations and development. At the same time, it will strengthen the training and development of high-quality human resources to meet the industry's needs in the new era.

With the motto "Connect - Intelligence - Development" for the 4th term (2022-2027), the VPA is determined to continue leveraging its expertise, experience, and innovation, maximizing its strength and always accompanying the production and business process of Petrovietnam and its subsidiaries at all levels.

Dr. Nguyễn Quốc Thập - President of the Vietnam Petroleum Association