Petrovietnam 2024: Implementing New Momentum, Refreshing Existing Drivers - Generating New Energy

2024 is a pivotal year in achieving the goals of the 2021-2025 five-year plan. Despite facing numerous challenges and a more complex global and market environment, Petrovietnam has set higher, more determined goals for 2024 compared to 2023, ensuring continuous growth and sustainable development.

“To enable Petrovietnam to successfully fulfill its production and business tasks in 2024 and the years to come, the entire Group must simultaneously implement comprehensive solutions to sustain and renew traditional growth drivers such as exploration, distribution, and processing, while also researching and integrating new drivers such as energy industries, new energy, business model transformation, and further scaling up and enhancing the efficiency of the corporation’s production and business operations,” emphasized Le Manh Hung, Secretary of the Party Committee and Chairman of the Board of Members of Petrovietnam.

Under the leadership of the Party Committee, in 2024, Petrovietnam not only focuses on comprehensive innovation but also reshapes its development strategies to increase sustainable value. By optimizing the oil and gas value chain from upstream to downstream, expanding and diversifying its investment portfolio, the Group has built new growth drivers. Notably, its strong pivot towards renewable energy has enabled Petrovietnam to align with the global energy transition trends and boost its competitiveness in the international supply chain.

A New Potential-Filled Development Space

One of the new driving forces in 2024 is Petrovietnam's pioneering efforts in the offshore wind power industry, marking its entry into the global energy supply chain and opening up a new potential-filled development space. In this field, PetroVietnam Technical Services Corporation (PTSC) has taken the lead with numerous outstanding achievements. The company successfully delivered the first batch of offshore wind turbine foundations for export worldwide—a historic milestone not only for PTSC but also for Vietnam’s renewable energy industry. To date, PTSC has won over 10 offshore wind power projects with a total power generation capacity of 5.2 GW and a total contract value exceeding USD 1.2 billion, affirming the capabilities of Petrovietnam/PTSC in participating in the global supply chain and meeting the stringent standards of international partners. This achievement lays a critical foundation for Petrovietnam/PTSC to confidently invest in larger renewable energy projects in the future.

Prime Minister Pham Minh Chinh encourages oil and gas workers at the offshore wind turbine foundation construction site.

In addition to offshore wind power, liquefied natural gas (LNG) is also becoming a crucial pillar in addressing the future energy supply equation. A key project in this sector is the 1-million-ton Thị Vải LNG terminal, the first facility in Vietnam’s strategic LNG infrastructure chain, completed and put into operation by Petrovietnam/PV GAS in the past year. This milestone not only marks a significant turning point in promoting LNG imports to offset the decline in domestic gas supply but also creates opportunities for Vietnam to deepen its participation in the global energy supply chain.

Alongside creating new growth drivers in emerging energy sectors like offshore wind and LNG, Petrovietnam is also focused on revitalizing traditional growth drivers and generating new momentum in its core operations. A highlight of 2024 has been the restart and completion of numerous key oil and gas projects that had been stalled for years. Notably, the Block B gas-to-power project chain, the largest in the history of Vietnam’s oil and gas industry, has made significant progress this year. Petrovietnam recorded important advancements in various components of this project chain, spanning upstream, midstream, and downstream sectors. The Block B gas-to-power chain is projected to contribute up to 20% of the region’s gas and electricity needs and is expected to become a crucial link in Vietnam's sustainable energy development strategy.

The Groundbreaking Ceremony of the CPP Platform for the Block B Project with the Attendance of Prime Minister Pham Minh Chinh

As part of the Group’s core operations, oil and gas exploration, and production have been continuously emphasized by Petrovietnam, with various technical solutions implemented to counter the natural decline in production. This ensures the achievement of increased reserves and production targets. By revitalizing traditional growth drivers, Petrovietnam is opening up significant new directions in exploration and extraction, maximizing valuable resources and contributing to the ’s stability and growth.

In the downstream sector, Binh Son Refining and Petrochemical Company (BSR), with the Dung Quat Refinery—a symbol of Vietnam’s petrochemical industry development—is progressively establishing itself as a key economic growth driver for the Central region. The project to upgrade and expand the Dung Quat Refinery commenced in 2024, showcasing Petrovietnam/BSR’s robust innovation efforts to meet the increasing energy demands of the economy and stricter environmental standards. This initiative serves as a lever to optimize BSR’s production capacity, enhance competitiveness, and initiate a new growth cycle, contributing to sustainable growth in the petrochemical industry, reducing dependence on imported supplies, and ensuring national energy security.

Dung Quat Refinery

Similarly, PetroVietnam Power Corporation (PV Power) continues to generate new growth drivers in the downstream oil and gas value chain by investing in key projects such as Nhon Trach 3 and Nhon Trach 4. These are the first LNG power plants in Vietnam, marking a significant transformation for Petrovietnam/PV Power as it adapts to the global energy transition trend. These projects also contribute to strengthening Petrovietnam’s energy ecosystem, covering gas extraction, LNG importation, transportation, distribution, and power generation. As a crucial link in this value chain, PV Power not only enhances operational efficiency but also fosters consistency and stability throughout Petrovietnam’s entire energy system.

Focus on Developing New Products and Services

In addition to prioritizing restructuring and creating new growth drivers for its core business areas, Petrovietnam and its subsidiaries are also focusing on the development of new products and services. In 2024, Binh Son Refining and Petrochemical Joint Stock Company (BSR) produced and sold two new types of Polypropylene (PP), TF4035 and BOPP F3030, while also making progress in researching sustainable aviation fuel (SAF). BSR is now technically prepared to supply SAF products to the market.

As a key player in the downstream value chain, PetroVietnam Oil Corporation (PVOIL) has also been advancing its innovation strategy, focusing on expanding its distribution network and developing its retail system with over 800 petrol stations nationwide. Digital transformation is a major highlight for the company, with the PVOIL Easy app and the development of non-fuel services at petrol stations. These initiatives enhance business efficiency and meet modern consumer trends. These strategies not only strengthen PVOIL's market position but also create new growth drivers, helping it maintain its role as a revenue center for Petrovietnam in 2024.

Petrovietnam's two fertilizer production units, PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo) and PetroVietnam Ca Mau Fertilizer Joint Stock Company (PVCFC), are intensifying their strategies to diversify products and expand operations, aligning with the trends of agricultural and industrial modernization. PVCFC is focusing on developing a comprehensive range of products and solutions for urban agriculture, offering high-quality, environmentally friendly fertilizers. Meanwhile, PVFCCo is planning to increase investment to expand its scale and develop deep-processed products, diversifying from the existing products of its plant, such as hydrogen peroxide (H2O2) and Diesel Exhaust Fluid (DEF).

Phu My Fertilizer’s product line has consistently been voted “Vietnam High-Quality Goods” by consumers for many years.

The technical services sector is also one of the strong growth drivers for Petrovietnam. While PTSC has made a significant mark in new energy, the other two pillars in this field for Petrovietnam, PVTrans and PV Drilling, have made breakthrough developments in their core services.

Leading the profitability index of the technical services segment, PVTrans continues to affirm its strategic vision by focusing on expanding its fleet and enhancing competitiveness in the maritime transport industry. Currently, PVTrans's fleet has grown to 58 vessels with a total deadweight tonnage of 1.7 million DWT, diversifying services from transporting oil products, chemicals, liquefied gas (LPG) to bulk cargo and concentrating on expanding markets to Europe and North America. Similarly, PV Drilling continues to execute its strategy of "reaching out to the open sea," especially in key Southeast Asian markets where demand for self-elevating rigs is on the rise. PV Drilling has focused on optimizing operational efficiency and safety measures while investing in more self-elevating rigs, diversifying technical service types to meet strict customer standards while promoting digital transformation in rig management and operations through modern technological solutions... aimed at creating added value for customers with high-quality services at competitive prices.

The crew of the PVTrans ship is crossing a frozen area.

Strengthening research and development to create breakthrough scientific and technological solutions is also a key focus in Petrovietnam's innovation strategy and that of its member units. The application of modern technology and digital transformation in management and operations not only helps Petrovietnam and its units enhance operational efficiency, reduce costs, but also boosts their competitiveness, increasing the presence of the Petrovietnam brand in the international market.

Affirming the Leading Role in the Energy Sector

With all its comprehensive renewal efforts, 2024 is also a year where Petrovietnam makes a strong mark by achieving and exceeding key business production targets, demonstrating the effectiveness of its strategy of "Managing fluctuations, adding new momentum, refreshing old drivers, and creating new energy sources."

All key production targets of the Group have been met or exceeded by 6-24%, finishing ahead of schedule by 22 days to over two months. Compared to 2023, the Group has seen growth in four key production indicators: urea production up by 4.6%; electricity production up by 25.8%; gasoline and oil production (including NSRP) up by 6.7%; and NPK production up by 19.5%. The year 2024 also records that all financial targets of the Group have exceeded plans from 34% to three times over, completing ahead of schedule by three to seven months with significant growth compared to 2023.

The Group's total revenue increased by 6%; contributions to the State budget rose by 9%; and consolidated revenue grew by 9%. Notably, Petrovietnam has broken its record for total revenue for three consecutive years, with a significant milestone in 2024 exceeding 1 trillion VND, reflecting a growth of 36% compared to the pre-COVID-19 period (2019) and accounting for about 9% of the country's total GDP.

Petroleum workers on the drilling rig.

The year 2025 holds significant importance for the country, as it prepares its resources and undertakes strong reforms to enter a new era, the era of national “awakening.” This is a crucial time that requires businesses to innovate, enhance their competitiveness, and reach an international level for sustainable development while also contributing to the economic and social growth of the nation. "With the goal of becoming Petrovietnam - the National Energy Industry Group, Petrovietnam will focus on systematically planning and implementing its development strategy; at the same time, we need to unify solutions to achieve 'double-digit' growth across all levels of the Group, from the parent company down to its member units/enterprises," emphasized Le Manh Hung, Secretary of the Party Committee and Chairman of Petrovietnam's Member Council.

The achievements made in 2024 have laid a solid foundation, allowing Petrovietnam to confidently step into a new phase of development. With effective management strategies, the right direction, and a spirit of continuous innovation, the Group is ready to conquer new heights. In the future, the Group will not only focus on harnessing current growth drivers but also seek breakthrough opportunities, realizing Petrovietnam's ambition – to be a powerful National Energy Industry Group that accompanies the sustainable development of the country.

PVN