PVN's workers at the Bien Dong 1 project's oil rig. The group's total oil production stood at 12.52 million tonnes in the first seven months of this year. — Photo courtesy of PVN
The Vietnam National Oil and Gas Group (PVN) will step up the development of new and renewable energies as one measure in achieving targets in its development strategy in the 2020-25 period.
It will also focus on developing its major production and business activities, including oil and gas exploration and exploitation, oil and gas processing, electricity production, and high-quality technical services, among others.
Besides that, PVN will speed up equitisation and divestment in the sectors where the State needs not hold the dominant capital share, resolving existing financial shortcomings, improving financial governance, and attracting more investment through investment funds and stock and bond markets to meet development demand and deal with possible risks.
The group will conduct an overall review of ongoing projects to focus resources on those that are highly-effective and urgent and stringently handle those performing poorly.
Efforts will also be made to preserve and increase capital resources, and associate production and business development with environmental protection, national security and defence, and national sovereignty at sea.
It will enhance the restructuring of scientific research and training establishments to improve quality and better meet the sector’s development requirements amid intensive international integration and the impact of Industry 4.0.
In addition, the group will maintain a close watch on global development trends and the national development strategy, proactively adapt to free trade agreements and new economic agreements, increase capacity in forecasting and managing risks, and effectively respond to fluctuations and uncertainties.
The group will effectively carry out coordination mechanisms and cooperation agreements with the Ministry of National Defence, the Ministry of Public Security and the Ministry of Foreign Affairs to fully conduct its tasks in controlling and exploring oil and gas.
It will also adopt policies to intensify cooperation with major countries’ oil and gas companies in exploration and exploitation in Viet Nam’s waters and on its continental shelf in order to serve economic development and the protection of national sovereignty at sea.
Business results
PVN reported that it still enjoyed profit of more than VND10 trillion (US$430.6 million) in the first seven months of this year despite Viet Nam being hit by the COVID-19 pandemic.
It was an outstanding result given that many of the leading oil and gas groups and companies around the world have posted significant losses this year, cut down their operational scale and let employees go.
Total oil production in the first seven months stood at 12.52 million tonnes of oil equivalent, 5.3 per cent higher than its seven-month plan. Petrol production was 7.37 million tonnes, for 95 per cent of the seven-month plan.
Meanwhile, electricity production in the period reached 12.75 billion kWh, meeting 99.3 per cent of the seven-month plan.
Nitro fertiliser production totalled 1.06 million tonnes, exceeding the seven-month plan by 6.7 per cent.
According to PVN, positive production and business results during January-July created sound financial outcomes, despite the average price of oil falling to $44 per barrel in the period. — VNS