Proud to Be PetroVietnam’s Core Business

Under the close guidance of both sides as well as the solidarity, determination and effort of the entire joint venture, Vietsovpetro gradually overcame difficulties to achieve uplifting results in 2014, completed and exceeded business plans. The joint venture produced 5.36 million tonnes of crude oil, exceeding the plan by 260,000 tonnes, brought ashore more than 1.4 billion cubic metres of gas, compared with the plan of 1.188 billion cubic metres. Since its operation, Vietsovpetro has extracted 213 million tonnes of crude oil, supplied 27 billion cubic metres of associated gas. Besides, as an operating contractor, Vietsovpetro produced 960,000 barrels of crude oil in Doi Moi field for Vietnam - Russia - Japan Operating Company (VRJ), over 2 million barrels in Ca Ngu Vang field for Hoan Vu JOC, and 19 million barrels in Te Giac Trang field for Hoang Long JOC.

 

Vietsovpetro drilled 102,300 metres, compared with the plan of 85,300 metres, completed 24 wells and repaired 77 wells. The joint venture transported 528,000 tonnes of products to offshore facilities, compared with the plan of 500,000 tonnes. The operating time of Vietsovpetro’s vessels is over 6,600 days, compared with the plan of 5,911 days. Vietsovpetro also stevedored 860,000 tonnes of goods and earned US$19.5 million from warehousing, preservation, loading and unloading services. In addition, Vietsovpetro utilised its expertise to provide services for other domestic and foreign oil and gas companies, earning nearly US$265.7 million.

 

 

In 2014, Vietsovpetro earned US$4.34 billion from oil sales, exceeding the plan by US$479 million and paid US$2.28 billion to the State coffers. The profitability was 11 percent higher than the target. With many effective measures and solutions, Vietsovpetro reduced costs by nearly US$27.5 million in the year.

 

Besides, Vietsovpetro was among the PetroVietnam’s most active members in doing social activities, taking part in national defence and security tasks, and protecting national sovereignty. The joint venture also built houses for the poor, contributed stones to build Truong Sa (Spratly) Islands, and organised many other meaningful events.

 

Defining that high-quality personnel are an invaluable asset that make the success and brand value of Vietsovpetro, the joint venture therefore always has effective talent treatment policies, personnel training and human resource development policies to meet its development requirements in each period. In 2014 alone, its good staffing and human resource development enabled it to improve labour efficiency and meet its human resources demand. The joint venture gives priority to attract young high-level labourers, especially excellent students graduated from Russia.

 

Managerial personnel planning also obtained high quality. The joint venture assigned young employees and female employees to the planning, enabling Vietsovpetro to have enough capable staff to fill in vacancies left by retirees who held managerial positions.

 

Besides, last year, Vietsovpetro sent 30 officers to attend training courses in Russia and six officers to follow doctorate training in Petroleum Institute and in Russia. Particularly, the joint venture also fostered political and professional training knowledge for its employees.

 

Vietsovpetro is determined to become the mainstay of the oil and gas industry and the core force of the Vietnam National Oil and Gas Group (PetroVietnam), the industry and the spearhead economy in the course of industrialisation and modernisation. With this approach, the human resources training and development strategy becomes a top concern and priority of Vietsovpetro. In 2015, the joint venture will continue to carry out its personnel training and development strategies, with main solutions being short-term and long-term in-depth training and specialist training to better serve its oil and gas exploration and exploitation.

 

With its impressive results in 2014, Vietsovpetro continued to hold its leading position in PetroVietnam. 2015 is a pivotal year of the five-year term from 2010 to 2015. Vietsovpetro defined its core tasks of oil and gas exploration and production, offshore work construction and operation expansion in 2015.

 

Vietsovpetro General Director Tu Thanh Nghia said that to achieve the above objectives, Vietsovpetro opted for 11 major solutions like minimising costs by limiting external rents, using internal in-house services and increasing self-service capacity; renegotiating lease prices of ships, helicopters and drilling rigs. In addition to accelerating the installation of underground cables and transformer stations to supply electricity for offshore works to reduce fuel costs, Vietsovpetro will complete economic and technical monitoring systems for fuel, material and energy consumption, as well as gauge the operational efficiency of machines and administrative expenses to reduce costs. Furthermore, Vietsovpetro will actively seek and expand services for non-PetroVietnam customers to increase revenue. The joint venture will merge and reshuffle units with similar functions to optimise costs and improve operational efficiency; step up the use of appropriate scientific and technological solutions to production and launch innovation movements concerning the improvement of technical and production efficiency.

 

He affirmed with a very strong determination, “In 2015, Vietsovpetro is resolute to overcome difficulties and turn challenges into opportunities to boost production and business, rearrange its operations towards professionalism and efficiency, and lift its leading role in the Vietnamese oil and gas industry.”