Prime Minister Pham Minh Chinh worked with Vietnam Oil and Gas Group

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On September 11, in Hanoi, Prime Minister Pham Minh Chinh worked with the Vietnam Oil and Gas Group (PVN) to assess the world energy situation, forecast the upcoming situation and determine the roles and tasks solutions to speed up the implementation of a number of key projects, handle difficulties, problems and recommendations of PVN.

Prime Minister Pham Minh Chinh working with the Vietnam Oil and Gas Group.

The working session was connected online to 14 bridge points on offshore oil and gas projects and exploiting platforms under PVN in Vietnam and Russian Federation.

According to PVN’s report: In recent years, PVN has seriously implemented the guidelines, policies and laws of the Party and State on socio-economic development… with a guideline : “Managing fluctuations, anticipating trends, connecting resources, promoting technology, promoting investment and sustainable developing” for leading and directing the key tasks of the Group. As a result, PVN continuously affirmed its pivotal role in the Vietnamese economy, made an important contribution to energy, food, economic and national sovereignty securities and contributed an important part for the State budget.

In 2021, the turnover of PVN reached 627.2 trillion VND, completing the year plan for 2 months ahead of time, exceeding 27.8%; paid 112.5 trillion VND the state budget, exceeding 80% of the plan; consolidated pre-tax profit reached 51.7 VND with 3 times higher than the plan.

In the first 8 months of 2022, oil and gas production exceeded the plan (oil production reached 7.31 million tons, exceeding 23%; nitrogen production reached 1,217 million tons, exceeding 10%; gasoline production reached 4.56 million tons, exceeding 8%). The total turnover reached 627,000 billion VND, exceeding 12% of the whole year plan with an increase of 60% compared to the same period in 2021; contributed 90,600 billion VND to the State budget, exceeding 40% of the year plan, with an increase of 45% over the same period in 2021. The total consolidated pre-tax profit in the first 8 months of 2022 reached 57,500 billion VND, 2.3 times higher than the same period in 2021, with an increase of 84% over the same period in 2021.

This is a very impressive result of PVN in the first 8 months of 2022, exceeding the set out plan and the requirement at the first meeting of the year as “striving to exceed 10% of all planned targets in 2022”.

Concluding the meeting, Prime Minister Pham Minh Chinh assessed: In recent years, PVN has experienced ups and downs and breakthroughs, but in general, achievements and results are more than limitations, disadvantages. For more than 2 years (2020, 2021) and the first 8 months of 2022, with the spirit of determination, solidarity and unanimity, PVN has strived to achieve the set out goals and requirements.

The Prime Minister stated: Some experiences drawn from PVN’s activities: Firstly, in the more difficulties and challenges, the heavier the task, it is necessary the more solidarity, consensus, dynamism, creativity with a spirit of daring to think, to do and to make breakthroughs, for the common cause and for the benefit of the nation.

Secondly: Must grasp the situation, stick to practice, originate from practice, respect practice and take practice as a measure to have the scientific, reasonable and effective thinking, methodology, and approach to solving problems.

Thirdly: Cadres continue to be the decisive factor, so building, caring and developing staff at all levels is a top task.

Fourthly: Reward, motivate and handle timely for the right people, jobs, individuals and groups with achievements and mistakes.

Fifthly: A harmonious, reasonable and effective combination of internal and external forces, in which internal forces (including people, mechanisms, policies, assigned assets…) are fundamental, strategic, long-term, decisive; external resources (including capital, science, technology, management experience, human resource training, etc.) are important and breakthrough.

Sixthly: Actively devolving on, decentralizing and making the individual responsibilities.

The Prime Minister forecasted the world, the region and the country situations in the coming time with the interleave opportunities, advantages, difficulties and challenges. But difficulties and challenges outweigh opportunities and advantages, especially for the oil and gas industry in the context of the volatile world energy market.

The Prime Minister emphasized the viewpoint and guiding ideology that is to combine harmoniously, rationally and effectively economic development with national defense and security assurance, and to protect independence, sovereignty, territorial integrity and stability, political safety, economic security and social order and safety, promoting foreign policy and integration. Harmonious, reasonable and effective combination of inheritance, stability, innovation and development. To develop quickly, but sustainably, harmoniously, reasonably and effectively between research, exploration, exploitation of oil and gas and processing and production of petroleum products, chemicals, fiber…

Agreeing with the objectives and tasks identified by PVN, the Prime Minister requested: In the context of many difficulties and challenges due to increasingly fierce strategic competition, complicated and unpredictable developments, There is no precedent, the trend of energy transition, mechanisms and policies are still limited, the market is affected, PVN needs to set out appropriate tasks and solutions for each period, each year, and each quarter to effectively use resources, initiatively, flexibly, creatively and effectively in performing assigned tasks.

Regarding the common goals and tasks, Prime Minister required: The most important goal and task of PVN is no energy lack, especially petroleum for the cause of national construction and defense, in accordance with the spirit of “energy for development”. Currently, the Group is meeting 75% of the domestic petroleum demand.

The second common goal and task is to build PVN to become a strong and effective economic group, a key enterprise in protecting national energy security, effectively contributing to the industrialized and modernized cause of the country; to build an independent and self-reliant economy connected with active and proactive international integration with the substantive, extensive, effective, and innovative technology. Especially advanced technology, digital transition and diversification of supply chains in production and business, response to climate change, energy transition, the green transition and contribute to ensuring social security.

In recent period, a number of issues related to Thai Binh 2 Thermal Power Plant, Song Hau 1 Thermal Power Plant… effectively resolved and at present time, relevant agencies and units are solving a number of issues of other projects.

The next specific task of PVN is to contribute developing the institutions, mechanisms and policies in appropriation with the tasks of PVN to ensure national energy in accordance with the circumstances and conditions of the country and the specific situation for contributing prevent and resistance against corruption, negativity, waste, including the amendment of the Petroleum Law, a preliminary review of the seven-year implementation of Resolution No. 41-NQ/TW in 2015 on strategic orientations for the development of Vietnam’s oil and gas industry to 2025 and a vision to 2035…

Another task of PVN is to promote the international cooperation, perseverance and steadfastness with the principle issues, but flexibility, creativity and artistry in implementing tasks, and specific solutions.

The Prime Minister required the ministries, agencies to closely and effectively coordinate with each other and with PVN for handling the works. When receiving petitions and proposals, they shall immediately and effectively deal with them, and solve them to the fullest extent within their assigned tasks, functions and powers, or beyond their competence, and then report them to competent authorities for consideration and decision.

For their part, the Government and the Prime Minister always stand by, listen and support for the Group’s development.

The Prime Minister basically agreed with the recommendations of PVN, many of which are being handled. The Prime Minister assigned the Deputy Prime Ministers, ministries and agencies to implement specific tasks with requirement to speed up the schedule time to make the works unequivocally, effectively and substantively after the meeting.

The Prime Minister assigned the specific tasks to ministries and agencies to deal with the remaining recommendations of PVN, and urgently submit them to competent authorities for consideration and decision, creating the best conditions for PVN development.