Petrovietnam marks significant achievements
Petrovietnam marks significant achievements
As it marks the 61st Traditional Day of the Vietnam oil and gas industry, the Vietnam Oil and Gas Group (Petrovietnam) is looking back with pride at its achievements in overcoming the difficult pandemic period, which have helped restore confidence in the group and won praise from Party and government leaders.
Overcoming challenges
Over the past 61 years, Petrovietnam has been consistently modernizing the country’s oil and gas industry, including gas prospecting, exploration, mining and development, fueling the power industry, oil and gas processing, and providing high-quality petroleum technical services. The oil and gas industry’s consistent investment and development have transformed the country’s economic structure, significantly increased the state budget revenue, and met the country’s energy demand.
Oil and gas workers on a marine project |
From 1986-2020, Petrovietnam earned total revenue of almost US$400 billion, paid more than US$110 billion in taxes to the state budget, with the group’s tax payment sometimes accounting for nearly 30 percent of the country's gross domestic product (GDP).
However, “big boats cannot avoid big waves”, as the saying goes. Since the second half of 2014, Petrovietnam has encountered unprecedented difficulties and challenges in its development history. The world oil and gas industry underwent a serious crisis, pushing down oil prices to prolonged lows, bottoming out at -US$37/barrel at the end of 2019. The complicated situation in the East Sea, the US-China trade war, climate change, and the COVID-19 pandemic all have directly affected Petrovietnam's operations. What is more, the state management of the oil and gas industry, including support policies for the sector, was found to be inadequate and inconsistent.
Offshore oil and gas activities are not only related to economic development but also to national security and defense |
However, with their progressive spirit promoted by the group’s leadership and staff, Petrovietnam weathered the storm and has been fulfilling and even exceeding its production and trading targets.
In the 2015-2020 period, Petrovietnam paid VND614.3 trillion in taxes to the state budget and earned total revenue of almost VND3.515 quadrillion (6.5 percent higher than the target of Politburo Resolution 41-NQ/TW on development of Vietnam oil and gas industry), including an after-tax profit of VND244.4 trillion, 6.3 percent more than the Politburo target.
Installing a CTC-2 rig in the Ca Tam field |
Record results
In early 2020, in the face of unpredictable fluctuations of domestic and international markets, Petrovietnam issued Decision 110 on governance, market, financial, investment and policy solutions. The group closely monitored market developments and the natural environment’s changes, focused on policy and science and technology updates, and researched and built flexible scenarios and solutions.
Selling Ca Mau Petroleum fertilizer products |
The group’s impressive 2020 achievements included revenue of more than VND566 trillion, tax payment worth VND83 trillion, and accrued profit of over VND19.9 trillion. The figures increased to VND640 trillion, VND 112.5 trillion and almost VND52 trillion in 2021, respectively.
Petrovietnam donated more than VND1 trillion to the COVID-19 Vaccine Fund and pandemic control activities.
By the end of October 2022, Petrovietnam had fulfilled its annual financial and oil and gas exploitation output targets, and exceeded its 2022 revenue and tax payment targets by 40 and 74 percent, respectively. The group accounted for 7.7 percent of Vietnam’s total budget revenue, 0.2 percent higher than during the 2016-2020 period.
