Petrovietnam Journal

The MoIT and Petrovietnam held the Workshop introducing the Petroleum Law 2022 to oil and gas operators.

PVJ — 2023-03-09

On March 9, 2023, in Ho Chi Minh City, the Ministry of Industry and Trade (MoIT) and the Vietnam Oil and Gas Group (Petrovietnam) held a workshop introducing the Petroleum Law 2022 to oil and gas operators.

Speaking at the opening workshop, Mr. Le Ngoc Son - Petrovietnam Vice President and Mr. Tran Thanh Tung - Deputy Director of MoIT Petroleum and Coal Department shared the significance of disseminating the Petroleum Law 2022 to the directly affected targets, especially oil and gas operators. The workshop is also an opportunity to recognize objective and multi-dimensional exchanges that will contribute to the drafting agency to complete the Decree detailing a number of articles of the Petroleum Law 2022, bringing the Law to come into effect from July 1, 2023.

On November 14, 2022, the 15th National Assembly of the Socialist Republic of Vietnam voted to approve the Petroleum Law 2022. It is the first time the Petroleum Law in force has been comprehensively revised since its first enactment on July 6, 1993. The Petroleum Law No. 12/2022/QH15, consisting of 11 Chapters and 69 Articles and taking effect from July 1, 2023, stipulates issues related to oil and gas basic surveys and follow-up operations.

The 2022 Petroleum Law has many new progressive and breakthrough points. Its governing scope is expanded to encompass petroleum basic surveys and petroleum operations. Some new definitions are added to be in line with the adjusted scope of Petroleum Law, such as petroleum basic surveys, unconventional petroleum objects (hydrate, coalbed methane, shale oil or clay oil, shale gas or clay gas); in line with the practice of oil and gas activities as well as the state management over the sector such as petroleum projects, fields and marginal fields, decommissioning, etc. Some definitions have been adapted to meet actual requirements during implementation contracts: petroleum operations, petroleum installations, cost recovery, etc. Regulations on the compliance of the 2022 Petroleum Law, relevant laws, and rules of applying international laws or petroleum industry practices (Article 4), etc. are also included.

Petroleum basic survey is a new content to establish a legal framework for the implementation and state management of this activity. The State policy on petroleum sector is clearly shown and updated, e.g., Article 5 – Clause 3 (no fees for using marine area for basic survey and oil and gas activities), Clause 4 (incentive policy for investment) and Clause 5 (encouraging to share existing petroleum infrastructure/ constructions).

The basis to conduct any oil and gas operations is a petroleum contract to be signed upon the Prime Minister’s approval or specific decision issued by the Prime Minister in the case of production continuation beyond petroleum contract term. This is a new content reflecting the actual needs at many oil and gas fields being produced in the final stage.

At the workshop, oil and gas operators focused on discussing and commenting on the draft Decree detailing the 2022 Petroleum Law in order to concretize a number of articles to ensure a consistency of implementation method and coordination among stakeholders (organizations, individuals, contractors, Petrovietnam, authorities). Based on the principles of Decree formulation mentioned above, the content of the draft Decree Version 1, being sent for feedback in Official Dispatch No. 274/BCT-DKT dated January 18, 2023, includes 68 articles and 1 appendix of PSC template. The draft Decree is divided into several groups of issues: Basic investigation on oil and gas potential; Process to select contractor for signing petroleum contracts; Petroleum contract; Regulations on incentives for petroleum activities; Policy on full exploiting fields, clusters of fields and blocks; Settlement of petroleum operation costs under petroleum contract.

Also in the workshop, Petrovietnam introduced the plan to select operators to sign oil and gas contracts in obedience with the 2022 Petroleum Law for several open blocks expected to be held in 2023.

Petrovietnam meeting oil and gas contractors in 2023

PVJ — 2023-03-09

On March 9, 2023, in Ho Chi Minh City, Vietnam Oil and Gas Group (Petrovietnam) held a meeting with contractors, operators and partners in the oil and gas field operating in Vietnam.

Regarding business results in the past 3 years, Petrovietnam President & CEO Le Manh Hung said: In 2020, Petrovietnam “spectacularly overcame challenges” to successfully optimize values, beating the “double crisis” impact and becoming one of the rare bright spots in the national economy picture, recording a profit of approximately USD 900 million. Identifying 2021 as the “year of growth recovery”, Petrovietnam took advantage of every opportunity to recover the growth in all areas of its operation, bringing the profit increased by 2.6 times compared to 2020, about USD 2.2 billion. In 2022, Petrovietnam has galvanized all its resources and favorable market conditions to create unprecedented success with many records established.

Petrovietnam has really transformed to become the leading economic group in Vietnam and a reputable NOC in the international arena. In energy security, it plays a spinal role by meeting more than 75% of the domestic petroleum products demand and being the 2nd largest power provider in Vietnam. In food security, fertilizers manufactured and supplied by Petrovietnam accounted for more than 70% urea needs domestically. In economic security, Petrovietnam’s total revenue accounted for approximately 9.8% GDP and contributed about 9.6% to the total national income. In national defense and security, by its offshore operation, Petrovietnam significantly participates in the protection of national sovereignty at sea; and as per social responsibility, Petrovietnam contributed more than 500 billion VND yearly for national social welfare.

Petrovietnam continues to strongly maintain a healthy financial status, its excellence in implementing the objectives, preserving and developing its assets and liquidity, which can be proved by: (i) Total assets as of 31 December 2022 reached over USD 41 billion, increasing 12% compared to the pre-pandemic period; (ii) Total revenue of 2022 was recorded at USD 39.6 billion, equivalent to 26% growth compared to pre-pandemic.

Petrovietnam, with the vision of being a pioneer in green energy and gradually reducing carbon emission, contributing to the successful implementation of the Government’s commitment at COP26, has built a development strategy to adapt to the global energy transition trend. This is also an opportunity for Petrovietnam to once again affirm its desire to conquer new heights with strong growth targets.

With strong financial resources, leading in science and technology development, and reputable corporate governance at regional level, Petrovietnam has set clear goals for the future and is determined to achieve them successfully. During that journey, Petrovietnam urges all contractors, operators and partners to continue their efforts, work together to overcome all difficulties and challenges to build a sustainable and dynamic Petrovietnam, capable of adapting with the turbulent world to reach new heights.

Accordingly, Petrovietnam President & CEO sincerely requested that the contractors, operators and partners to work closely with Petrovietnam and its units to: successfully implement the approved the 2023 Work Program Plan and Budget; synchronously conduct solutions to complete the exploration plan, increasing oil and gas reserves in 2023 to 8 - 16 million tons of oil equivalent; actively research for optimally-adjusted exploration plans in the next period; monitor, maintain and operate safely and effectively all the oil and gas assets; closely work together to resolve timely any difficulties and problems during the execution to ensure the timeliness and efficiency.

Concurrently, Petrovietnam aims to constantly improve the existing efficient value chains and establish new ones to generate added values, creating a sustainable Petrovietnam ecosystem. The factors that might impact Petrovietnam’s core business products and services, as well as their competitiveness against new energy products are assessed to be used as the basis for developing appropriate strategies and innovations required for short-/medium-/long-term. Finally, it is a must to concentrate on applying technology solutions, speed up digital transformation, develop corporate culture that embraces digital culture to promote innovation, change management thinking, thereby improving product value and labor productivity throughout Petrovietnam.

During the meeting, Petrovietnam awarded Certificates of Merit to 12 collectives and 12 individuals of contractors, operators and partners with excellent achievements in operating and managing oil and gas activities in the period of 2020 – 2022.

On behalf of the honored oil and gas contractors, Mr. Do Ngoc Thanh - JVPC Deputy General Director highly appreciated the efforts of the Vietnam’s Government and Petrovietnam in creating a more favourable business environment and platform for contractors through the recently promulgated Petroleum Law 2022, bringing many expectations for the development of the oil and gas industry in the future. JVPC is committed to maintaining safe and efficient operations at Block 15-2 as well as making efforts to expand business in the energy sector in Vietnam with the close cooperation of Petrovietnam.

Offshore wind power - the highlight topic of GEOTEC HANOI 2023

PVJ — 2023-03-28

The Vietnam Petroleum Institute (VPI) announces that the 5^th International Conference on “Geotechnics for Sustainable Infrastructure Development" (GEOTEC HANOI 2023) will take place at the National Convention Center (NCC) in Hanoi, on December 14 - 15, 2023.

GEOTEC HANOI 2023 will be co-organized by FECON Corporation and Vietnam Petroleum Institute (VPI), Japan Geotechnical Society (JGS), Vietnam Society for Soil Mechanics and Geotechnical Engineering (VSSMGE), Thuyloi University (TLU). The conference will focus on 6 key themes: Deep foundations, Tunnelling and underground spaces, Ground improvement, Landslide and erosion, Geotechnical modelling and monitoring and Offshore wind power and coastal geotechnics.

With the message "Geotechnics for Sustainable Infrastructure Development", GEOTEC HANOI 2023 aims at exchanging and sharing experiences, up-to-date solutions and technologies in geoengineering to improve the quality of infrastructures, contributing to social development.

According to Dr. Pham Quy Ngoc - VPI expert, "Offshore wind power and coastal geotechnics" is the highlight topic of GEOTEC HANOI 2023 and also a matter of concern for businesses in the fields of energy, oil and gas. With a coastal line of more than 3,000 km long, Vietnam has a great potential in wind energy, especially offshore wind power. Many onshore and nearshore wind power farms have been developed and operated in the coastal area. Some offshore wind power projects have been also initiated. Technologies for geotechnical/geophysical surveying and processing data, designing foundations for wind power structures offshore and coastal zones of interest of geotechnical engineers, geophysicists and specialists will be discussed and exchanged in the Conference.

Petrovietnam has advantages in developing offshore wind power thanks to its good financial potential, the ability to arrange capital with a high credit rating, and favorable access to green financial sources, low-interest loans as well as other incentives of the Government and international financial institutions to support the development of green and clean energy. In addition, Petrovietnam and its member units can make full use of the experience and human resource availability in the fields of designing, manufacturing and operating offshore constructions to actively participate in the supply chain and develop offshore wind power projects.

The Organizing Committee of GEOTEC HANOI 2023 has received over 290 abstracts from more than 800 authors and groups of authors from 41 countries and regions around the world. In which, many abstracts come from scientists of famous universities in the US, the UK, Germany, Norway, Japan, the Netherlands, and South Korea. For more information, please visit: https://geotechn.vn/