Prime Minister Nguyen Xuan Phuc was in attendance during the conference with the ministries, state authorities and departments delegates including Member of Party Central Committee, Member of the National Assembly Standing Committee, Chairman of National Assembly Economic Affairs Committee Vu Hong Thanh; Member of Party Central Committee, Vice Chairman of Communist Party of Vietnam’s Central Economic Commission Cao Duc Phat; Member of Party Central Committee, Chairman of Vietnam General Confederation of Labour Bui Van Cuong; Member of Party Central Committee, Party’s Committee Secretary of State-owned Enterprise Sector Pham Viet Thanh; Member of Party Central Committee, Chairman of State Capital Management Committee Nguyen Hoang Anh.

Prime Minister Nguyen Xuan Phuc delivered speech at PetroVietnam's conference

Speaking at the meeting, Prime Minister Nguyen Xuan Phuc has congratulated for PetroVietnam’s achievements and results, said PetroVietnam was so far proved to be the leading corporation in the state-owned enterprises sector and confirmed the State and Government’s high recognition and respect for its pivotal role in national economic growth, foreign affairs, security and defence. Oil and gas processing products now add more values to the national economy and for the sake of people’s living aspects. Prime Minister Phuc mentioned that the confidence for petroleum industry has been growing up and it was obviously that PetroVietnam contribution for the benefit of society should be recognized. PetroVietnam has developed into a fully-integrated business model with high qualified human resources and was the Hero corporation in the new changing period. In the coming future, PetroVietnam will continue to act as the responsible energy major that drives the economy forward and work closely with partners to fulfill its commitment for the sustainable development. To adapt to the new environment and challenges, PetroVietnam should focus in looking for innovative and agile solutions to boost projects progress and efficiency, successfully complete its strategies and targets. The ambition is to develop PetroVietnam into a stronger corporation in the region and worldwide, constantly evolve to contribute in the national investment to increase by 33-34% and average export growth of 7-8%...

The event also received an encouraging flower bouquet from General Secretary and President Nguyen Phu Trong towards PetroVietnam leaders and employees’ efforts in the Group’s achievements and results.

The conference has seen President & Group Chief Executive Officer Nguyen Vu Truong Son delivered business performance report for fiscal year 2018 and plans for 2019. Despite the downturn within the industry, tough competition amid deeper integration and inefficient projects, PetroVietnam has completed its production targets and continued to provide the best-in-class profitability and robust cash generation in 2018. Crude oil output from local fields beat the annual forecast, reflecting an increase of 675.000 tons. Consolidated sales revenues reached 626.800 billion dong, up 18% from target (~96.000 billion dong) and 26% from 2017. Total profits after tax more than doubled at 47.100 billion dong, increased by 23% from 2017. Especially, State budget contribution was about 121.300 billion dong, which is up 24% from 2017, in line with an increase of 64.3% (47.500 billion dong) compared with the set up target. The result was a stronger corporation with significant role in the national GDP growth of 7.08%. Much of the above success was generated from its full responsibilities as the leading corporation that had a direct influence on the national security, energy security and state revenues. PetroVietnam has been going forward to reaffirm its strong position in the country with high spirits and creative, complete solutions implementation.

President and CEO Nguyen Vu Truong Son presented 2018 business annual report and plans for 2019

During the year 2018, PetroVietnam has also paid its attention, resources and practical proposals to finalise 05 inefficient projects according to the approved scheme by Prime Minister to restructure, including the restart operation of 06 trains of Dinh Vu polyester plant (03 trains by 20/4/2018 and the remains by 01/11/2018); accelerating the progress of Thai Binh 2 thermal power, Song Hau 1 thermal power projects.

However, 2018 and the next coming periods were a difficult time for PetroVietnam and its subsidiaries in terms of exploration projects financing and the complicated movements toward East Sea drilling and production operations while mature fields were in a rapid decline of production and the number of new drilled wells decreased that resulted in annual reduction ratio of 15% to above 30%, new discoveries were of small reserves and global oil price remained at its low level. Over the past 03 years, technical services suppliers within the industry have suffered from deeper price cut and fewer works (PTSC, PVD, DMC….). Several proposals of PetroVietnam were in the process of consideration and finalising…

Group Chairman of Board of Council Tran Sy Thanh delivered speech at the conference

In order to overcome the difficulties, Prime Minister Phuc said PetroVietnam should launch new management systems in line with Decree 41 of the State Politial Bureau on development strategy directions for petroleum industry and especially Decree 36 of the Central Committee 12th Congress to practically supervise its major projects and investments to prevent from any delays and obstacles as well as East Sea operations movements, leveraging the capability to strengthen mutual collaboration with partners including regional and global banks to facilitate project financing. In addition, PetroVietnam should capture the new opportunities for profitable growth from the traditional and deepwater areas in Vietnam continental shelf.  Emphasized that the State and Government will look into PetroVietnam's proposals and give the directions to pave the way for its further development, Prime Minister Phuc said from PetroVietnam's side, one of the priorities is better market forecast for business planning purposes while continue to develop the full oil and gas value chain, empower the highly-competent workforce and reconcile its economic and social development with environment protection and abidance by the rules…

Conference panorama

In response to the directions and expectation of the State and Government, Member of Party Central Committee, Vice Chairman of Communist Party of Vietnam’s Central Economic Commission, Party’s Committee Secretary, Group Chairman of Board of Council Tran Sy Thanh has delivered the sincere thanks to the presence of Prime Minister Nguyen Xuan Phuc and delegates from Ministries and Departments at the conference, said that this was an encouragement to PetroVietnam and its employees. PetroVietnam is committed to fulfill 2019 targets and continue to going forward in bulding trusting and benefits for the communities as it was over the past time for sustainable development.