The meeting saw the participation of Mr. Tran Binh Minh, Member of Petrovietnam’s board of directors, Mr. Le Ngoc Son – Petrovietnam’s Deputy General Director, and leaders of Petrovietnam’s operating units. Addressing the event, Petrovietnam General Director Le Manh Hung emphasized the consistent view of Petrovietnam. This view includes maintaining steady growth goals and completing assigned targets and plans even in the most difficult and challenging contexts. He requested Petrovietnam’s operating units to quickly review their goals and tasks, fully assess anticipated difficulties and challenges, and to report back on plans for implementation of and solutions toward completing the 2023 management plan.

General Director of Petrovietnam Le Manh Hung chairs the meeting.

At the meeting, leaders of operating units reported on the oil and gas exploration activities through the first 8 months of 2023, assessing the opportunities, risks, and challenges in implementing the year’s plan. There were positive signal when oil prices increased in August, however, the market still presented many shortcomings. Falling fertilizer prices and low electricity mobilization affected crude oil development targets and impacted the goal of increasing long-term reserves and increasing planned output. Some mine clusters have very complex geological structures and require complex mining technology, which significantly affects the mining dynamics. Joint operating companies’ equipment needs to be repaired and promptly replaced after years of operation. Some units cannot lure large investments, affecting the expansion of these operating areas.

However the operating units have continuously made efforts to implement management and technical solutions for increasing production, promoting business, and limiting the impact of adverse factors. They also focus on managing cost while researching market fluctuation trends to deploy appropriate exploitation activities, while taking advantage of opportunities to increase cash flow during times of low oil prices. In the first 8 months of 2023, most of Petrovietnam’s production targets were completed, exceeding its assigned plans by 3 to 29%. During this period crude oil exploitation reached 7.06 million tons, exceeding the goal by 14.5%. This result shows the great effort of the Group in maintaining its mining output, even while most of Vietnam’s key mines are on a natural decline. It also demonstrates effectiveness in applying technical measures to sustain mining output while maintain mine safety.

Overview of the working session.

At the meeting, operators such as Vietsovpetro, Bien Dong POC, Idemitsu, PVEP-POC, Cuu Long JOC, Hoan Long – Hoan Vu JOC, and the Japan Vietnam Petroleum Company (JVPC), presented several solutions on geology and technology to ensure mining output throughout 2023. They requested the Group to support removing difficulties related to legal procedures, and to ask the Government, and its ministries and branches to soon approve mine development plans including expanding operating areas to prepare for the next stages of development.

At the meeting, leaders of the Group discussed solutions to remove difficulties and obstacles and mapped out specific plans and tasks for the last months of 2023. After listening to the reports, Petrovietnam General Director Le Manh Hung expressed his appreciation for the efforts of the operating units and requested Petrovietnam’s units to re-evaluate the limitations and risks to creating effective plans and to provide solutions to overcome them. He suggested the units focus on solutions to improve management and operational efficiency, reduce costs, apply technical solutions, limit the decline in natural output, and make efforts to promote investment projects in exploration and exploitation. Units need to continue to effectively implement ongoing value chains, while coordinating with each other to develop new value chains to maximize available resources to increase revenue and profits.

General Director of Petrovietnam, Le Manh Hung inspects the Sao Vang CPP project.

General Director Le Manh Hung noted that units should promote propaganda work to their employees on specific goals to best complete the set corporate goals and plans, thereby contributing to the overall results of the group. This is an affirmation of the responsibility and role of oil and gas workers contributing to Vietnam’s overall growth goals.

The Petrovietnam General Director instructed specialized departments to actively coordinate with their units to handle related legal procedures, promote approval of mine development plans, expand operating areas, and extend oil and gas contracts.

General Director Le Manh Hung affirmed that Petrovietnam will always accompany and support their member groups, while focusing on removing difficulties and obstacles at each unit. He asked units to continue their effort to research, propose and effectively implement solutions in exploration and development, and complete assigned targets and tasks in 2023 with excellence.