The Prime Ministers of Vietnam and Singapore witness the transfer of the decision approving activities for marine resource monitoring, investigation, survey and assessment to Petrovietnam.

The Vietnamese Party and Government’s trust in Petrovietnam

At the end of this past August, within the framework of a conference to promote the implementation of investment cooperation projects between Vietnam and Singapore, the Ministry of Natural Resources and Environment of Vietnam delegated the decision approving activities of marine resources monitoring, investigation, survey and assessment to Petrovietnam. The event, witnessed by Vietnam’s Prime Minister Pham Minh Chinh, Singapore’s Prime Minister Lee Hsien Loong, and leaders of Petrovietnam, prepared for the development of offshore renewable energy projects in Vietnam and the exporting of clean electricity to Singapore.

Addressing the event, Singapore Prime Minister Lee Hsien Loong emphasized that Vietnam and Singapore have established the “Digital Economy – Green Economy Partnership”, creating conditions to promote cooperation towards green, sustainable development such as renewable energy.

Vietnam Petroleum Technical Services Joint Stock Corporation (PTSC) is currently the first and only investor in Vietnam licensed by the Vietnamese Ministry of Natural Resources and Environment to monitor, investigate, conduct surveys, and assess marine resources to develop offshore wind power projects in particular and offshore renewable energy in general. Receiving relevant licenses within the framework of the program has revealed the trust of the Singaporean and Vietnamese Governments in Petrovietnam and its member units in this new field in Vietnam.

With the establishment of the General Department of Petroleum and Gas on September 3, 1975, following Vietnam’s reunification, Petrovietnam was tasked with carrying out oil and gas surveys and exploration on the sea throughout Vietnam’s territory, including conducting 2D and 3D surveys, mapping and identify potential areas for the development of the oil and gas industry. Being the only unit capable of taking on the pioneering responsibility in implementing a field that requires significant resources, cutting-edge technology, and top-notch human resources has been made possible by 48 years of applying science and technology and carrying out operations at sea.

In addition to the navy, coast guard, and local fishermen, Petrovietnam is an authorized warrior on the sea. Petrovietnam and its member units have been designing drilling rigs, while constructing, installing, managing, and operating marine projects since the 1980s and 90s. With the continuing development of science and technology, Petrovietnam has gradually gained experience and mastered technology in the manufacturing, installation, and operation of oil and gas projects on Vietnam’s continental shelf.

Mechanical products with the trademark Petrovietnam have been exported to several countries, bringing huge foreign exchange revenue to Vietnam, while marking an important transition to a new stage of development while opening up new opportunities for Petrovietnam.

Petrovietnam proactively strives to become a National Energy Industrial Group

Currently Petrovietnam is the largest economic consortium among state-owned enterprises (SOEs), holding a key role and position in the Vietnamese economy. It has contributed to ensuring economic, energy, and food security as well as participated in maintaining national defense security at sea. With its great contributions, in its draft project for large-scale state-owned enterprise development, the Vietnamese Ministry of Planning and Investment believes that Petrovietnam will pave the way and lead businesses in other economic sectors, while taking a leadership role in the energy sector.

General Director of Petrovietnam Le Manh Hung discusses cooperation in green energy development with Mr. Wong Kim Yin, General Director of Sembcorp Industries of Singapore.

Mr. Le Manh Hung, General Director of Petrovietnam said: “Energy transition is an extremely difficult task, requiring us to constantly learn and know that this trend is inevitable and cannot be changed. Petrovietnam cannot stand aside”. This is the imperative and goal for Petrovietnam – the main Industry-Energy Group of the Vietnamese economy.

With that pioneering mission since 2019, Petrovietnam has developed long-term energy transition plans and roadmaps. Petrovietnam and its member units have carefully prepared steps for the energy transition process by producing and using alternative renewable energy sources. The Group has organized scientific conferences to evaluate opportunities and prepare human resources and facilities to meet the ability to deploy offshore renewable energy projects.

Petrovietnam has adjusted its strategy to 2030, with a vision to 2045 with the goal of increasing the total installed capacity to 8,000 to 14,000 megawatts by 2030. The proportion of renewable power sources are expected to account for 5 to 10% of the total installed capacity of Petrovietnam. By 2045 Petrovietnam plans to increase its installed capacity to 8 to 10% of the total capacity of Vietnam’s power system and the proportion of renewable energy sources to 10 to 20% of Petrovietnam’s total power source capacity.

PTSC installed underground cables for the Tan Thuan wind power project.

Offshore renewable energy is a new field for several countries in Southeast Asia and around the world. To implement these projects, in addition to having experience and capacity in designing and constructing projects at sea, another factor to be considered is the financial potential. By the end of 2022, Petrovietnam will achieve a record revenue of nearly 1 million billion VND, leading and accounting for a large proportion of the total revenue of state-owned corporations.

Petrovietnam’s credit rating is equivalent to national credit, and forms the basis for Petrovietnam to conveniently arrange capital for projects and have the ability to access green financial sources with low-interest loans, Government incentives, and the support of international financial organizations in developing clean and green energy.

Petrovietnam’s advantages and the Party, State and people’s trust are the prestigious “certificate” for the group to carry out its pioneering mission in offshore renewable energy, contributing to Vietnam’s green and sustainable development in the future.