Result 2018:
13.97

Crude oil
Million Tons

10.01

Gas exploited
Billion M3

170

Electricity
Billion KWhs

1.63

Fertilizer
Million Tons

9.34

Petroleum
Million Tons

Petrovietnam: 44 years accompanying and developing with the country

On 3rd September 1975, the Government Council issued Decree No. 170/CP on the establishment of the Vietnam General Department of Petroleum and Gas (now is Vietnam National Oil and Gas Group). It has been 44 years since this event, Vietnam National Oil and Gas Group has overcome many difficulties, challenges, continuously developed, contributed to ensuring national energy security and became economic leader in the national construction and development.

Right after the North was completely liberated, President Ho Chi Minh with the strategic vision of a genius envisioned and set a goal to build a strong petroleum industry as a foundation and motivation for national industrialization and economic development. With the establishment of Vietnam General Department of Petroleum and Gas, petroleum activities have been strongly deployed throughout the country, from the Red River Delta region to the Southern continental shelf and there have been many oil and gas discoveries on both land and continental shelves.

During 44 years of establishment and development, the officials and employees of Vietnam National Oil and Gas Group (PetroVietnam) have always endeavored, strived and united wholeheartedly to overcome difficulties and hardships, promoted their potentials, resources to build and develop the Oil and Gas industry commensurate with the beliefs and aspirations of President Ho Chi Minh at his lifetime. 

 

PQP-HT 1 platform at Bien Dong 01 Project 

PetroVietnam's development in particular and the oil and gas industry in general have contributed to the transformation of the country's economy. To date, the oil and gas industry has exploited nearly 400 million tons of oil and 150 billion m3 of gas, meeting the energy demand for producing 170 billion kWh of electricity (accounting for about 15% of the total installed capacity and 30% of the total electricity output of the whole country). In addition, the Group has produced about 55 million tons of petroleum products (accounting for 33% of total national demand). 

In the period of 2006-2015, in addition to the important successes that the Group has achieved in the field of oil and gas exploration and production, PetroVietnam contributes an average of 20-25% of the total state budget every year, 18-25% of the national GDP; Especially, the Group has successfully implemented and put into operation three national key project clusters/ projects on Oil and Gas, namely: Ca Mau Gas - Electricity – Fertilizer Project Cluster; Dong Nam Bo Gas - Electricity - Fertilizer Project Cluster and Dung Quat Oil Refinery Project; These project clusters/ projects are operating very effectively not only economically but also greatly contributing to the socio-economic development of the country as a whole and the socio-economic development of the localities where the project operates. 

From 2015 to the present, in the context the global and domestic economy faces many difficulties, the oil price declines sharply, many challenges negatively affected all aspects of PetroVietnam's activities. However, with the attention and direction of the leaders, together with the efforts of the Group's officials, party members and employees, PetroVietnam has overcome difficulties and had many encouraging achievements. During this period, every year, the Group's state budget contribution accounts for 9-11% of the total state budget revenue and accounts for 16.5-17% of the total central budget revenue. Particularly, the State budget contribution from crude oil accounts for 5-6% of the total state budget revenue and 7-9% of the total central budget revenue. Along with that, the Group has contributed to the national average GDP of 10-13% annually.

At present, PetroVietnam has built a complete and synchronous oil and gas industry system from oil and gas exploration and production to development of gas - electricity - processing and oil and gas service industry, making an important contribution to ensuring national energy security. In particular, the field of oil and gas exploration and production is the core field. The Group has been implementing 62 domestic petroleum contracts (covering most of the 200-nautical mile exclusive economic zone of Vietnam continental shelf). The oil and gas exploration and production activities of PetroVietnam on the continental shelf also contribute to the protection of national sovereignty at sea. In addition, with the implementation of oil and gas contracts abroad, PetroVietnam is also a pioneer in cooperation, international integration and investment expansion abroad with the implementation of 11 oil and gas contracts in foreign countries, in 09 countries/ territories. Every year, the field of oil and gas exploration and production contributes about 36% of the total revenue and 60.5% of the total state budget to the Group. 

PetroVietnam currently operates 5 large gas pipeline systems including: Cuu Long Basin - Dinh Co - Phu My Gas Pipeline, supplying gas to industrial and civil consumer households in the Southeast region; Nam Con Son 1 pipeline providing gas for industrial and civil consumer households in the Southeast region; Nam Con Son 2 pipeline, phase 1, providings gas for industrial and civil consumer households in the Southeast region; PM3 CAA - Ca Mau pipeline supplying gas for industrial and civil consumer households in the Southwest region and Ham Rong - Thai Binh pipeline supplying gas for industrial and civil consumer households in the North. The Group's gas pipelines provide nearly 9-11 billion m3 of gas annually, meeting the production of about 35% of the national electricity output, 70% of the fertilizer output and 70-80% of gas for civil consumer households of the whole country.

For oil and gas processing sector, PetroVietnam is currently performing commercial operation of the key oil and gas projects such as Dung Quat oil refinery, Phu My and Ca Mau fertilizer plants, and Nghi Son Refinery and Petrochemical Complex… Every year, oil and gas processing sector contributes about 20% of total revenue and 13% to the State budget of the entire Group. In particular, the total gasoline output supplied to the market from Dung Quat oil refinery and Nghi Son Refinery and Petrochemical Complex meets about 80-85% of the domestic gasoline demand. Besides, Ca Mau and Phu My fertilizer plants with a total capacity of about 1.6 million tons of fertilizer (urea)/ year ensure to supply more than 70% of the country's fertilizer demand. 

Since 2007, with the establishment of PetroVietnam Power Corporation, the electricity sector has also become one of the five main manufacturing sectors of PetroVietnam. Currently, the Group operates 7 power plants with a total installed capacity of 4,214 MW, accounting for 12% of the country's total power capacity. PetroVietnam is also the country's largest gas thermal power producer with the capacity of gas thermal power plants of 2,700MW. By the end of 2018, PetroVietnam has reached over 170 billion kWh of electricity production and is the second largest power supplier of the country, making an important contribution to ensuring energy security for socio-economic development, security and national defense.
In the development goals of the oil and gas industry in the coming years, services play an important role, present and involved in all stages of exploration, production, processing, transportation, storage and distribution of oil & gas industry.

With that goal, PetroVietnam has gradually built and developed the oil and gas service field in sync with all types of services such as seismic survey; drilling, drilling services, design surveys, construction and installation of oil and gas projects; port and wharf services; inspection and maintenance of oil and gas projects; repairing and new building oil and gas floating facilities; scientific and training services; insurance services.

The Group has built up modern material and technical facilities, capable enough to carry out key projects and works themselves, be more proactive in deploying investment and controlling the progress of projects; build a team of service workers with high qualifications and qualifications, capable of operating and carrying out large-scale and high-tech projects and works.

In addition to promoting production and business activities, social security is always paid attention to by the leaders and employees of the Vietnam National Oil and Gas Group, considering it an important political task, responsibility and affection of oil and gas workers to the community and society. Every oil and gas worker actively participates in activities to earn income, contribute to social charity funds, to the poor, to people in mountainous, border, island and other areas, and families are in difficult circumstances.

It can be affirmed that, in recent years, PetroVietnam leaders, officers and employees have constantly made efforts from the early stages to build and develop a complete and synchronous petroleum industry system. PetroVietnam in particular, the oil and gas industry in general have fulfilled Uncle Ho's wishes, the strategy of the Party and the State, becoming an energy symbol, accompanying the country's development.

Exploration & Production