Result 2019:
13.09

Crude oil
Million Tons

10.20

Gas exploited
Billion M3

22.54

Electricity
Billion KWhs

1.577

Fertilizer
Million Tons

11.500

Petroleum
Million Tons

Petrovietnam comprehensively completes assigned targets and plans

On 6th January in Hanoi, Vietnam National Oil and Gas Group (PVN) held a Conference to summarize the work in 2019 and deploy missions in 2020. Party General Secretary and President Nguyen Phu Trong sent flower basket to congratulate PVN leaders and workers on the results achieved in 2019.

Attending and directing the conference were Deputy Prime Minister Trinh Dinh Dzung; Chairman of State Capital Management Committee at Enterprise Nguyen Hoang Anh; the Party Committee Secretary of the Central Business Sector Y Thanh Ha Niê Kđăm; Deputy Chairman of Government Office Nguyen Cao Luc; Deputy Minister of Industry and Trade Dang Hoang An. The conference was also attended by heads of ministries, agencies and central branches. 
PVN was represented by Mr. Tran Sy Thanh - member of the Party Central Committee, Secretary of the Party Committee, Chairman of the Board of Directors; Mr. Le Manh Hung - Deputy Secretary of the Party Committee, member of the Board of Directors, President and CEO; together with members of the Group's Party Executive Committee, members of the Board of Directors, Executive Management Board, heads of the management organizations, heads of the subsidiaries, Divisions and Administration Office. 

 Group leader introduces petroleum products to Deputy Prime Minister Trinh Dinh Dzung 

On behalf of the Party Committee, Mr. Pham Xuan Canh - Standing Deputy Secretary of the Party Committee, member of the Board of Directors of PVN presented the report on Party work in 2019, directions and tasks for 2020.

At the Conference, on behalf of the Group's leader, President and CEO Le Manh Hung presented a summary of the Report on the implementation of the 2019 plan, 2020 production and business plan. 

The report stated that in 2019, PVN continued to implement assigned targets, plans and tasks in the context of many difficulties. 

The unfavorable international situations were: (i) the world economy slowed down, the disagreements among major countries on global trade policies were deepened, the trend of increasing protectionism ... had strong impact on the country's economic development, including PVN. (ii) EU and US countries' economic sanctions against Russia were not removed, making it difficult for the Group to borrow capital from ECAs of Russia and the US and to implement big projects. (iii) the East Sea continued to have unpredictable developments, greatly affecting the Group's oil and gas exploration activities. 

In the country, the legal system was still overlapping, changing, lacking stability; mechanisms and policies related to production, business and investment in the oil and gas field were still inadequate, not yet removed, not yet suitable to the actual development of the oil and gas industry and the Group. 

The petroleum exploration and production activities continued facing many difficulties such as: petroleum reserves and potential were not as much as expected; conditions for implementing domestic petroleum exploration projects must be carried out in deep-lying and offshore areas in the East Sea; petroleum production in key fields was in a period of decline. Financial regulations of the Parent Company - The Group were not approved. The Group continued to solve many past problems, greatly affecting its resources for sustainable development. The psychology of a part of employees in the Group was still unstable, the situation of avoiding responsibility and pushing jobs still existed. 

However, being fully aware of the responsibility of an economic group to the country, all PVN's performance directly affected GDP growth, energy security and State budget revenues; with the motto “Bravery - Solidarity - Innovation – Action”, PVN leaders and employees maintained the belief, solidarity, calm overcoming difficulties, proactively built and synchronously implemented solutions to best perform the assigned tasks. 

By the end of 2019, with the right orientation and guideline of action, with drastic and effective steering and management solutions, PVN fulfilled all the year targets from 2-60 days ahead of schedule, notably: Industrial production value (at the fixed price in 2010) reached 519.8 trillion dong, exceeding 4.3% of the plan, an increase of 6.3% compared to 2018. Total revenue of PVN reached 736.2 trillion dong, exceeding 123.9 trillion dong (20%) of the plan, an increase of 17% compared to 2018. PVN contributed 108 trillion dong to the State budget, exceeding 20.5 trillion dong (23.0%) of the plan. Total consolidated profit before tax reached 43.8 trillion dong, exceeding 40% of the plan. 

 Overview of the conference

The capital preservation ratio as of 31st December 2019 was 1.02 times, showing that the Parent Company - Group preserved and developed its capital. The expected quick solvency ratio as of 31st December 2019 was 2.9 times; the expected general solvency ratio as of 31st December 2019 was 4.0 times, showing that the Parent Company - Group was capable of paying debts, ensuring safety for production and business and development investment…

During the implementation of key oil and gas projects and urgent power projects, PVN actively, proactively and timely implemented, regularly reported to the Ministry of Industry and Trade and the State Capital Management Committee at enterprise on the progress, difficulties, related problems, issues beyond the authority, to seek guidance. The value of investment implementation in 2019 reached over 30.4 trillion dong.  

 PVN President and CEO Le Manh Hung reports 2019 operation results  

PVN has been proactive and positive in handling 5 weak and difficult projects approved by the Prime Minister in Decision No. 1468/QD-TTg dated 29th September 2017. 

PVN has completed the report on PVN restructuring plan for the period of 2019-2025. Currently, PVN is waiting for the competent authorities to approve the Restructuring Project as a basis for implementing the next works. 

Scientific and technological activities have been promoted; security, safety and environment works on oil and gas projects have been guaranteed; the training work has been actively implemented; the inspection and supervision of all activities from PVN to its member units have been carried out seriously and promptly; social security continues to be implemented according to commitments.

In particular, PVN has focused on improving the effectiveness and efficiency of corporate governance, focusing on communication and implementing many measures to recreate Petrovietnam culture.

With strong business and financial results achieved over the years and 2019, as well as positive development prospects in the future, PVN has been rated by Fitch Ratings for independent credit at BB +. This is one of the clear evidences reflecting the innovation and enhancement of financial management integrated with PVN's production and business activities in a timely, practical and effective manner, bringing confidence to domestic and foreign investors, financial institutions and strategic partners with PVN; as a solid basis and conditions for PVN to mobilize capital in the international market. 

In addition to the achieved results, PVN President and CEO Le Manh Hung also pointed out that the Group's production and business activities in 2019 still had some difficulties and shortcomings, of which some difficulties were forecasted to directly affect the Group's plan in 2020 and the Group’s development in the following years. 

However, determining that successful implementation of the 2020 plan is crucial to successfully implement the 5-year plan (2016-2020), in 2020, with the results achieved in 2019, on behalf of the Group’s leaders and employees, PVN's President and CEO Le Manh Hung commited to complete and finish ahead of schedule the targets, tasks and plans assigned by the Party and the State. To accomplish that, PVN President and CEO called on all Party members and employees of the whole Group with practical actions, to continue to maintain the faith, strive to enhance more responsibilities, all smallest actions, take every opportunity, and overcome all difficulties and challenges to fulfill the tasks assigned by the Party, State and people. 

“The whole Group affirms that we are always deserved to be the pillar of the country's economy, and we have made many important contributions to the cause of national construction and defense” said PVN President and CEO Le Manh Hung. 


 Deputy Prime Minister Trinh Dinh Dzung speaks at the conference

Attending and directing the Conference, on behalf of the Party and Government leaders, Deputy Prime Minister Trinh Dinh Dzung acknowledged and praised the business and production results that PVN leaders and employees achieved in 2019.

According to Deputy Prime Minister Trinh Dinh Dzung, in 2019, besides the opportunities and advantages, we faced many difficulties and challenges due to the negative impacts of the regional and world situation as well as intrinsic difficulties in the country. However, with the efforts of the entire political system, the participation of all people, business community, our country has achieved many comprehensive and important results.

In the overall results of the country, there has been important contribution of the Oil and Gas industry in general and Vietnam National Oil and Gas Group in particular. Despite facing many difficulties and challenges, with aspirations and enthusiasm, with the tradition of solidarity overcoming all difficulties and challenges, leaders, experts, officials, employees and workers of Vietnam Oil and Gas Industry, Vietnam National Oil and Gas Group have successfully completed all assigned tasks, making an important contribution to the overall development achievements of the country. PVN and its subsidiaries have successfully completed the set targets, especially those of increasing reserves, petroleum production and processing and financial indicators

With comprehensive results of the oil and gas industry, Vietnam National Oil and Gas Group has made an important contribution to successfully implement the socio-economic development goals in 2019 with the whole country, improve the country’s economic potential; ensure national energy security, protect the sovereignty of sea and islands of the country. 

On behalf of the Government, Prime Minister Nguyen Xuan Phuc and Deputy Prime Minister Trinh Dinh Dzung acknowledged, appreciated and praised the leaders and employees of the Oil and Gas Industry, Vietnam National Oil and Gas Group for their efforts to obtain very important achievements in 2019. 

However, besides the achieved results, the Deputy Prime Minister also pointed out that the oil and gas industry and PVN still faced great challenges, requiring efforts to overcome and operate effectively. 

On sharing the difficulties and challenges facing the oil and gas industry, Deputy Prime Minister Trinh Dinh Dzung said that the Government and the Prime Minister would always accompany and share with the Oil and Gas industry in general and Vietnam National Oil and Gas Group in particular.  


 PVN honors 12 teams with outstanding achievements in 2019

2020 is the last year of the country's socio-economic development plan for the 2016-2020 period, the year with many important national events and also the year organizing the Party Congress at all levels, proceeding to the 13th National Party Congress. Therefore, the successful accomplishment of the socio-economic development targets in 2020 is particularly important, creating a new foundation and spirit for the nation.

For the Oil and Gas Industry particularly, the requirement is to become a complete and comprehensive economic and technical industry, including exploration, production, transporting, processing, storing, distribution, services, import and export; an important contribution to the cause of national construction and defense. At the same time, it is necessary to develop the oil and gas industry, including PVN with strong potential in finance, science and technology, high competitiveness and initiative in international integration. 
“In 2019, it is very happy that PVN has been rated by Fitch Ratings for independent credit at BB +. This is the trust for domestic and foreign investors, financial institutions and strategic partners for the Group; is a solid basis and conditions for the Group to raise capital in the international market” emphasized Deputy Prime Minister. 
Considering that oil and gas sector has potential risks, Deputy Prime Minister Trinh Dinh Dzung asked the ministries, branches and localities to coordinate with Vietnam National Oil and Gas Group more and more closely and promptly deal with issues related to its scope of responsibility to promote the sustainable development of the Oil and Gas industry. 
Deputy Prime Minister Trinh Dinh Dzung believed the Oil and Gas industry and Vietnam National Oil and Gas Group would continue to uphold the spirit of solidarity, bravery, creativity and promotion of their glorious tradition and achieved results, much more great achievements, contributing to the successful implementation of socio-economic development tasks, serving the country's goal of sustainable development.  

 PVN Chairman of the Board of Directors Tran Sy Thanh speaks at the ceremony

On behalf of PVN leaders and workers, Chairman of the Board of Directors Tran Sy Thanh expressed the interest of the leaders of the Party, the State, ministries, central branches, especially the encouragement of Party General Secretary and President Nguyen Phu Trong after listening to reports on the Group's achievements in 2019. 

Affirming that in recent years, PVN has had “Bravery - Solidarity - Innovation – Action” in fact, talked the talk and walked the walk, and PVN would successfully fulfill the targets and tasks in 2020, Chairman Tran Sy Thanh expected the Government, ministries and branches to continue paying attention and sharing more with the Groups and corporations, including PVN. “We will not be able to complete well without the support from the authorities” said Chairman Tran Sy Thanh. 

Also at the conference, PVN honored 12 teams with outstanding achievements in 2019 and 19 groups of authors of special and type A initiatives of the Group.

Exploration & Production