Oil & Gas

In the first eight months of 2021, gas demand for power generation declined due to the impact of the Covid-19 pandemic that negatively affected state budget revenues and the economy, as well as implementation of the national energy strategy.

Information from the Vietnam Oil and Gas Group (PVN) said: The investment management activities of PVN in recent times had many positive evolutions. Besides putting oil and gas fields into operation as planned, the progress schedules of the power projects (Song Hau 1 – 2x600 MW, Thai Binh 2 – 2x600 MW) were also accelerated.

The Ministry of Finance recently reported that although revenues from domestic, import and export activities have fallen short of estimated levels, budget revenue from crude oil in the first eight months recorded positive results. At VND25.7 trillion it equaled 111 percent of the estimate, and up 0.9 percent over the same period last year.

On 22 September 2021, in New York, representatives of The AES Corporation (NYSE: AES) and Petrovietnam Gas JSC (PV Gas) today exchanged the signed joint venture agreement for the Son My LNG terminal, which will be located in Binh Thuan Province in South-Central Vietnam. The terminal will play an important role in accelerating Vietnam’s energy transition and economic growth.

On the occasion of working with the European Parliament and the Belgium Kingdom, National Assembly Chairman Vuong Dinh Hue received Mr. Perer Lavoy – The Senior Director of the Asia-Pacific region of Exxon Mobil Group (USA) in Belgium. At the meeting with Mr. Perer Lavoy, the National Assembly Chairman acknowledged the efforts of Exxon in implementing the principle assigning on government guarantee and committing for Blue Whale Gas field and suggested Exxon and Vietnam Oil and Gas Group (PVN) continue close coordinating to maintain the timely progress schedule to take the first gas flow from Blue Whale field by 2024.

Prime Minister Pham Minh Chinh has just signed and the Decision No. 1455/QD-TTg, dated September 2, 2021 on strengthening the State Steering Committee for the key petroleum projects.

The 3,200 MW Bac Lieu LNG Power Project is the largest project with 100% foreign direct investment in the Mekong Delta region. The Environmental Impact Assessment of the project has been approved by the Ministry of Natural Resources and Environment on Sept.01, 2021.

Vietnamese Ambassador to Germany, Dr. Nguyen Minh Vu, recently met with Großmann Ingenieur Consult GmbH (GICON®) and the Vietnam Petroleum Institute (VPI) to promote co-operation in the field of renewable energy in Vietnam.

PetroVietnam Exploration Production Corporation (PVEP) informed that in the first 7 months of 2021, the exploitation output of PVEP reached 2.07 million tons of oil equivalence, equal to 104% of the 7 month plan and 62% of the year plan. The production output in 7 months exceeded the plan because of the most of the domestic fields were exploited stably, with the flows higher than expected.

On 3rd August 2021, at the headquarters of Vietnam National Oil and Gas Group (PetroVietnam), Chairman of the Board of Directors Hoang Quoc Vuong had a meeting and worked with Mr. Leonid Mikhelson, Chairman of Novatek Group (Russia).

As the largest liquefied petroleum gas (LPG) warehouse in Vietnam, Vung Tau PV GAS Dock Warehouse (VTDW) is an important link in the Bach Ho and Nam Con Son gas chain, supplying 60% LPG output for Vietnam market per year, maintaining domestic LPG trading market share, playing an important role in production and business tasks, and ensuring national energy security of PV GAS. In August 2021, PV GAS will celebrate its 20th anniversary since putting VTDW into commercial operation.

The Petrovietnam Technical and Services Corporation PTSC Mechanical & Construction (PTSC M&C) Company informed that this company has just received the Letter of handing EPCI General Contractor contract for the third phase of Gallaf project - package 05 (also known as Gallaf Batch 3 EPC 05 project) of North Oil Company (NOC) - a member of the consortium between Qatar National Petroleum Corporation (Qatar Petroleum) and France Total Oil and Gas Corporation. The contract signing ceremony was held in online form on the afternoon of July 29, 2021.

The Vietnam Oil and Gas Group (PVN) informed that, in the first 6 months of 2021, the pre-tax profit of the group achieved over 3 times higher than the growth rate of oil prices as the average price of crude oil in the first 6 months of the year 66.8 USD/barrel, exceeding the plan price for 48%, while the united pre-tax profit exceeded 165% of the plan. Especially, the PVN return on equity (ROE) in the first 6 months was estimated at 4.6% so PVN belongs to the group of oil and gas companies with good ROE in the world.

Right in the first days of June 2021, at PV GAS Vung Tau Port, Ba Ria - Vung Tau, Gas Products Trading Company (PVGas Trading) - a subsidiary of PV GAS has successfully received the first shipment under the refrigerant LPG purchase contract with Saudi Arabian Oil Company (Saudi Aramco supplier). With this shipment, PVGas Trading has become the first direct customer of Saudi Aramco in Vietnam market.

On the afternoon of May 9, 2021, PetroVietnam Drilling and Well Services Corporation (PV Drilling) officially pulled out to sea the semi-submersible auxiliary drilling rig - PV DRILLING V, preparing for the integration with the drilling rig (DES) in Singapore to serve the drilling campaign of Brunei Shell Petroleum Company Sdn Bhd (BSP) in Brunei, with a term of reliable 6 years and extended 4 years, that expects to be deployed from the third quarter of 2021.