President and CEO Le Manh Hung chairs the meeting
Attending and directing the meeting were Mr. Hoang Quoc Vuong - Secretary of the Party Committee, Chairman of the Board of Directors of the Group; members of the Standing Party Committee, members of the Board of Directors; Vice Presidents, Heads of Divisions/ Administration Office of the Group and heads of units under the Group.
Overview of Executive Management Board meeting
In October, the control of Covid-19 epidemic across the country had many flourishes, social distancing measures were eased, production and business activities were gradually restored to a new normal state, redirecting from the Covid-19 epidemic prevention and control strategy to “Adapting safely, flexibly and controlling effectively the Covid-19 epidemic” according to the Government’s Resolution No. 128/NQ-CP dated 11th October 2021. However, the heavy effects of the Covid-19 pandemic are still lingering, the consumption of petroleum products is extremely difficult, especially the mobilized volume of gas and electricity has decreased sharply. The risk of inflationary pressure is increasing day by day. After the epidemic wave, domestic and international organizations have, in turn, lowered their forecast for Vietnam’s economic growth in 2021, ranging from 2 to 2.9%. Particularly, Vietnam Institute for Economic and Policy Research (VEPR) gave a bad scenario when forecasting GDP growth for the whole year at only 1.0 - 1.5%.
Panoramic view of the meeting room of the Board of Directors
Online bridge points
Facing the situation, with the high efforts of the whole system and the promotion of experience, management efficiency, flexibility in operation, preparation and good pace with the market, in October and the first ten months of 2021, Petrovietnam has achieved many positive results. Especially, in the face of the decline in natural output of existing oil and gas fields after a long period of production and there were many difficulties in mechanism for the investment and development of new fields, the maintenance and completion of production plans was a huge challenge for Petrovietnam. However, the Group has focused its efforts on applying scientific, technical and technological solutions, oil recovery improvement solutions; as a result, crude oil production in October exceeded 6.6% of the October plan, it was 9.09 million tons in 10 months, exceeded 12.4% of the 10-month plan. Since then, Petrovietnam has made an important contribution of 75.4 trillion dong to the State budget in the first 10 months, exceeded 21% of the year plan and 23% over the same period in 2020. In the context that many large enterprises face difficulties and losses under the severe impact of the Covid-19 pandemic, the important contributions of Petrovietnam represent the great efforts of the Group, its member units and nearly 60,000 employees.
Investment management throughout the Group has also seen many positive changes. In particular, field development projects such as BK-18A, BK-19 have been actively implemented ahead schedule. It is expected that these two projects will finish at the same time and receive the first oil flow in the next few days. Petrovietnam also continues to focus all resources to soon put Song Hau 1 and Thai Binh 2 thermal power plant projects into operation, including the commercial operation of Unit 1 of Song Hau 1 thermal power plant project scheduled in November 2021.
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Oil and gas workers
The practice of thrift and anti-wastefulness in the first 10 months of 2021 reached nearly 2,390 billion dong, equivalent to 88% of the reduction plan in 2021. It is the basis for Petrovietnam to actively participate in social security activities and support Covid-19 prevention work. In the first 10 months of 2021, the whole Group has participated in the Covid-19 Prevention Fund with 784.8 billion dong, including 554.9 billion dong to the vaccine fund. On 3th November, the Group was honored to be awarded the Certificate of Merit by the Prime Minister for achievements in the prevention and control of the Covid-19 epidemic.
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Other tasks such as digital transformation; security, safety; communication and corporate culture; training; ... are implemented synchronously, actively with high efficiency.
On the basis of analyzing and evaluating the results of production and business activities in October and the first 10 months of 2021, the Executive Management Board and heads of the Divisions in each field in charge discussed, handled, solved difficulties and provided solutions to support member units in production, business and investment.
Giving direction, Mr. Hoang Quoc Vuong said that recently, the Steering Committee for handling the shortcomings and weaknesses of a number of slow-moving and inefficient projects and enterprises in the Industry and Trade sector has agreed to put 4/5 projects of the Group out of the list of 12 loss-making projects of the Industry and Trade industry. In the coming time, with new conditions, units need to proactively have the most optimal plan to handle difficulties and put projects into operation soon. In the “new normal” period, units must not be subjective with the prevention of the Covid-19 epidemic and need to continue to actively implement solutions to control the epidemic, comply with 5K, vaccinate…
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After listening to the exchange, work handling and solving of the leaders of the units, Divisions and the Vice Directors of the Group, concurrently receiving the direction of Mr. Hoang Quoc Vuong - Secretary of the Party Committee, Chairman of the Board of Directors of the Group, President and CEO Le Manh Hung recognized and highly appreciated the achievements of the whole Group in the first 10 months of the year. He affirmed the results as the great efforts of the whole Group, with the smooth coordination of units, Petrovietnam has overcome a very difficult period under the impact of the Covid-19 pandemic, especially from May 2021 onwards.
In order to continue promoting the achieved results, Mr. Le Manh Hung directed the Group and the units to continue assessing risks in production and business activities for the remaining 2 months, having good control solutions, and making effort to achieve the highest level of the 2021 plan, with the focus on management and technical safety solutions to increase production output, increase production capacity of petroleum products to reduce pressure on imports and coordinate well with distribution units to maintain the market, protect revenue sources in order to make the highest contribution to the State budget; thereby show affection and responsibility to the country in the current difficult period.
In addition, units shall continue to assess and update the macro situation, the market, the developments of fiscal and monetary policies, especially the possibility that inflation is forecasted at a high level to control well financial resources, disbursement of investment capital, as well as operate production and business activities; assess the impact of the energy crisis, both positive and negative aspects, in order to have solutions; effectively implement and put value chains into practice to improve competitiveness; well implement portfolio management, speed up the implementation of projects; continue to focus on controlling the Covid-19 epidemic, keeping production safety, workers’ safety, ensuring the pace of production and business; prepare necessary resources to take advantage of market opportunities in the oil and gas service sector in the coming time.
Practically celebrating the 60th Traditional Day of Vietnam’s Oil and Gas Industry (27th November), Chairman of the Board of Directors Hoang Quoc Vuong, President and CEO Le Manh Hung called on the units to emulate for the highest achievements in production and business activities in 2021; each unit should organize welcome activities within the allowed framework, effectively implement the Petrovietnam Cultural Reconstruction Project with the action motto “Solidarity - Discipline - Creativity – Efficiency” in order to strengthen trust, solidarity and cohesion among the oil and gas employees, enhance the image, prestige and brand name of Petrovietnam.