Petrovietnam looks towards energy transition, service sector competitiveness

General Director of the Vietnam Oil and Gas Group (Petrovietnam) Le Manh Hung has highlighted the crucial role of the service sector, one of the five principal areas of the group, in its production and business activities and development.
Petrovietnam looks towards energy transition, service sector competitiveness | Business | Vietnam+ (VietnamPlus)
Participants at the meeting. (Photo: VNA)

In his speech at the group's 2023 Oil and Gas Services Conference held recently in Hanoi, Hung said that although the service sector has recorded significant achievements, challenges still remain.

Hung suggested participants propose measures to address difficulties, advancing the group's service sector. Discussions and reports presented at the event also highlighted both challenges and opportunities.

Accordingly, Petro VietNam’s service units continued to leverage their strengths and roles in providing services. They displayed a steadfast commitment to maximizing their contributions and optimizing industry-provided services.

The quality of service provision by units in the industry has been increasingly improved, meeting the demands and requirements of users.

In 2022 alone, Petrovietnam’s service revenue reached 199.8 trillion VND (8.4 billion USD), surpassing the year's target by over 78 per cent, accounting for 34 per cent of the consolidated revenue of the group, and marking a remarkable 39 per cent increase from the previous year. This exemplifies the increasingly crucial role of oil and gas service activities within Petrovietnam's value chain.

To minimize negative influences caused by global political and macroeconomic instabilities, and fluctuations of markets, delegates underlined the need to promote the formation and expansion of interconnected chains to optimize material resources and enhance investment efficiency, thus extending their oil and gas service provision beyond the scope of Petrovietnam.

They said that this also serves as motivation and leverage for service units to proactively seek suitable partnerships that align with their capabilities, and enhance their competitiveness in delivering services for the Group's large-scale projects in the future.

Chairman of the Board of Members of Petrovietnam Hoang Quoc Vuong acknowledged and highly evaluated insights shared at the conference.

He underlined the importance of decentralization to enhance initiative within service units and build incentive mechanisms to foster closer collaboration among service providers within the group.

It is also necessary to promote the cultivation of corporate culture and proactive anticipation of energy transition trends, to facilitate the swift implementation of digital transformation throughout the group and its provision of technical service abroad, Vuong said.

In his conclusion, Hung spotlighted the steady growth of Petrovietnam's oil and gas service sector in recent years. He commended the industry for successfully meeting domestic and international oil and gas market demands, expanding its reach to provide technical services overseas.

He emphasized the need to exploit the service sector's capacities and oil and gas technology strengths, especially in fields aligned with energy transformation trends.

Petrovietnam's overarching aim is to become a prominent energy industry group, requiring the oil and gas service sector to evolve into a comprehensive "industrial and energy service sector". This necessitates strategic adjustments, efficient asset utilization, and enhanced inter-unit connectivity. The goal is to sustain the market share of traditional oil and gas services, ensuring economic efficiency while elevating service quality.

Hung asked for efforts to accelerate the restructuring of units within the oil and gas service domain, fortifying their pivotal role in connecting Petro Vietnam’s activities. They also need to formulate essential product and service lists, perfect internal management systems, and boost decentralized governance.

Within the framework of the conference, seven minutes and memoranda of understanding were signed between units in Petrovietnam, aiming to expand implementation and bolster the effectiveness of connection chains across the group.

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(Source: VNA)