By the end of September 2021, PetroVietnam Exploration Production Corporation (PVEP) continues to maintain stable production and business activities with positive results achieved for many targets in a difficult and challenging year, in particularly, not only fulfilled the target ahead of schedule but also over-fulfilled the revenue target of the year 2021.

On 12th October, PVEP held a preliminary meeting on the business results of the first 9 months of 2021 and preparation plan for the last 3 months as well as 2022. Attending the meeting, for Vietnam Oil and Gas Group (PVN) there were Chairman of the Board Hoang Quoc Vuong and leaders from the Board of Directors, Executive Board and representatives of the functional Divisions of PVN; For PVEP were Dr. Tran Quoc Viet – Chairman of the Board, Dr. Tran Hong Nam – President & CEO, and all members from Board of Directors, Executive Board, representatives from functional Divisions, branches, projects and JOCs.

Overview of the Meeting

In the context of 2021 that the global oil and gas industry continues to be heavily influenced by the “double crisis” due to the Covid-19 epidemic; however with the promotion of large-scale vaccination campaigns and the strong rally comes as businesses and consumers increase their usage of everything from petrol after long period that governments has lifted social curbs imposed to slow the spread of corona virus; therefore, the oil price has shown positive signs - on average, in 9 months, it was about 70 USD/ barrel, much higher than 2020. In particular, oil prices climbed on 4th October to the highest level of above 81 USD/barrel in three years.

Domestically, the first nine months of the year experienced two outbreaks of COVID-19. In which, the last wave of COVID-19 epidemic has been complicated, spreading to many provinces and cities throughout the country, especially in southern provinces where many units, oil and gas works/projects are located.  In such context of difficulties and challenges, with the drastic direction of leaders as well as efforts and perseverance to implement synchronous response solutions of the whole PVEP, the production, business and investment activities continued to be maintained stably and got the higher growth compared to the same period of 2020.

Specifically, the output of PVEP in the first 9 months reached 2.64 million tons of oil equivalent, estimated at 105% of the 9-month plan and 81% of the year plan; Total revenue is estimated at 22.493 trillion VND, reaching 152% of the plan in the first 9 months and reaching 113% of the year plan; increasing its reserves to 0.33 million tons of oil equivalent; profit before tax is estimated at 7.888 trillion VND; estimated pre-distributed profit after tax is 3.629 billion VND; the contribution to the State budget is 8.245 trillion VND (161% of 9 month-plan and 121% of the year plan).

At the meeting, on the basis of reports and speeches on production and business results of units, PVEP leaders gave specific instructions for each unit as well as each section/ field of activity to promptly solve difficulties and problems, in order to improve operational capacity, competitiveness, well prepare for key tasks in last 3 months and 2022 also, then ensure sustainable development in the coming years.

Speaking at the meeting, Petrovietnam Chairman Hoang Quoc Vuong acknowledged the efforts of all PVEP in the first 9 months of the year, with many units over-fulfilling the plan. Recognizing many challenges ahead, especially the COVID-19 pandemic in the country is very complicate, the Chairman emphasized and believed that PVEP continues promoting the results achieved, makes the best to successfully complete the goal of 2021.

Chairman Hoang Quoc Vuong addresses direction at the meeting

Giving conclusion speech, PVEP CEO Tran Hong Nam sent his profound thanks to PVN leaders and also highly appreciated the efforts of all PVEP in 2021, especially the prevention of COVID-19 epidemic has been strictly and thoroughly implemented, ensuring absolute safety, without interrupting production and business activities. He also suggested that these great efforts will be remaining in the performance of assigned tasks in the last months of year 2021, contributing to the overall development of PVN.

2022 is forecasted to remain a difficult year for the world oil and gas market, despite hope of antiviral drug of Covid-19 to be put into use soon. In preparation for the production and business plan in 2022, PVEP President and CEO directed a number of key tasks including: focus on market forecasting, political and economic issues in 2022 to make response scenarios and appropriate management directions, especially for the Covid-19 epidemic; carefully analyze the investment and portfolio management; focus on implementing the tasks in the project on responding to energy movement; continue to optimize investment, optimize production costs, reduce operating costs; realize the chain of links within the PVEP and enhance mutual support between units.… Especially, President and CEO Tran Hong Nam also requested to focus on achieving the oil reserves target as the PVN’s Chairman of Board of Directors commanded at the meeting, besides continue to develop internal forces as well as improve competitiveness.