Launch of a drilling base in the sea (Photo:

The General Director of Vietnam Oil and Gas Group (Petrovietnam), Le Manh Hung, has highlighted the crucial role of the service sector, one of the group’s five main areas, in its production and business activities and development.

Speaking at the group’s Oil and Gas Services Conference 2023, recently held in Hanoi, Hung said that although the services sector has seen significant achievements, there are still challenges to overcome.

Hung suggested participants propose measures to address the difficulties, advancing the group’s service sector.

Discussions and reports presented at the event also highlighted both challenges and opportunities.

Consequently, Petrovietnam’s service units continued to leverage their strengths and roles in service delivery. They showed a strong commitment to maximizing their contributions and optimizing the services provided by the sector.

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

In 2022 alone, Petrovietnam’s service revenue reached VND199.8 trillion (US$8.4 billion), exceeding the year’s target by more than 78%, accounting for 34% of the group’s consolidated revenue and marking a notable increase of 39% compared to the previous year. This exemplifies the increasingly crucial role of oil and gas services activities within Petrovietnam’s value chain.

Participants at the meeting (Photo: VNA)

To minimize negative influences caused by global political and macroeconomic instabilities, and market fluctuations, delegates stressed the need to promote the formation and expansion of interconnected chains to optimize material resources and improve investment efficiency, thereby expanding its provision of oil and gas services beyond the scope of Petrovietnam.

They said this also serves as motivation and impetus for service units to proactively seek suitable partnerships that fit their capabilities, and improve their competitiveness in providing services for the Group’s large-scale projects in the future.

Petrovietnam’s service units continued to leverage their strengths and roles in service delivery. They showed a strong commitment to maximize their contributions and optimize the services provided by the sector

The Chairman of the Board of Directors of Petrovietnam, Hoang Quoc Vuong, recognized and highly valued the ideas shared at the conference.

He stressed the importance of decentralization to enhance initiative within service units and create an incentive mechanism to encourage closer collaboration between the group’s service providers.

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

In his conclusion, Hung highlighted the steady growth of Petrovietnam’s oil and gas services sector in recent years. He praised the sector for successfully meeting the demands of the domestic and international oil and gas market, expanding its reach to provide technical services abroad.

He underlined the need to exploit the capabilities of the service sector and the strengths of oil and gas technology, especially in fields aligned with energy transformation trends.

Petrovietnam’s overall goal is to become a leading energy industry group, which requires the oil and gas services sector to evolve into a comprehensive “industrial and energy services sector.” This requires strategic adjustments, effective asset utilization and greater connectivity between units. The objective is to maintain the market share of traditional oil and gas services, guaranteeing economic efficiency while raising the quality of service.

Hung called for the restructuring of oil and gas service units to be accelerated, reinforcing their critical role in connecting Petrovietnam’s activities. They must also formulate lists of key products and services, refine internal management systems and promote decentralized governance.

Within the framework of the conference, seven minutes and memorandums of understanding were signed between Petrovietnam units, with the aim of expanding the application and strengthening the effectiveness of connection chains throughout the group.

Article republished from the Vietnamese state media VNA within the framework of an agreement between both parties to share content. Link to the original article:

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