Petrovietnam accelerates E&P activities as a foundation for sustainable “double-digit growth”

Towards the 50th Anniversary of Petrovietnam’s Founding (September 3, 1975 – September 3, 2025): A New Path Has Opened

Over the past 50 years, Petrovietnam has developed into a well-integrated and comprehensive enterprise, continuously increasing its contributions to the national economy. As a cornerstone of economic development, it enables the participation and expansion of other sectors. Additionally, it serves as a key instrument for implementing socio-economic development strategies, energy policies, ensuring national energy security, and safeguarding maritime sovereignty.

Upstream E&P plays an especially crucial role in Petrovietnam's value chain. Despite its high risks, successful oil and gas exploration and production bring substantial returns, supplying crude oil and natural gas as key inputs for refining, fertilizer production, and power generation. Upstream operations also drive job creation in high-value oil and gas services, including drilling, rig fabrication, offshore vessel operations, and Floating Storage Offloading/Floating Production Storage and Offloading (FSO/FPSO) services. As a result, the upstream sector is recognized as a fundamental pillar within Petrovietnam’s value chain.

Oil and gas production at the Bach Ho field

Beyond contributing to Petrovietnam’s annual business targets, the E&P sector plays a pivotal role in generating state revenue. It also serves as the primary engine propelling Petrovietnam toward double-digit growth, thereby fostering rapid and sustainable national development.

Amid the ongoing energy transition, in addition to investing in renewable energy, Petrovietnam recognizes the urgent need to expedite and optimize oil and gas exploitation while intensifying exploration efforts to "revitalize old momentum." This strategic direction aligns with Politburo Conclusion 76-KL/TW, which underscores the importance of geological surveys, exploration, and production as core mandates for Petrovietnam. The directive also prioritizes oil and gas activities in high-potential and deep-water areas, emphasizing the need for flexible investment mechanisms.

In recent years, Petrovietnam has placed strong emphasis on enhancing exploration and production, implementing various technical solutions to mitigate natural declines in production and ensure reserve growth. As part of this effort, key upstream entities such as PVEP and Vietsovpetro have been optimizing project workflows, enhancing synergies between operations to maximize shared infrastructure, and leveraging joint negotiations for services and procurement to secure the best pricing. This approach also promotes the utilization of domestic services, fostering the growth of local enterprises, reducing costs, and improving operational flexibility.

To navigate the energy transition, the E&P sector must integrate advanced technologies and scientific innovations to enhance exploration and production efficiency. Additionally, a tailored regulatory framework is essential for Petrovietnam to proactively manage investment risks and resource allocation in this evolving landscape.

On February 27th, at the Government’s Conference with State-Owned Enterprises on "Tasks and Solutions to Drive Double-Digit Economic Growth and Sustainable National Development," Petrovietnam’s General Director, Le Ngoc Son, directly proposed to government leaders and ministries the urgent need to institutionalize regulatory mechanisms and policies, starting with amendments to Petrovietnam’s charter and financial regulations. The Group’s leadership also requested direct approval from the Prime Minister on specific issues arising in the implementation of oil and gas exploration and production activities.

Given Petrovietnam’s operational characteristics and the evolving industry landscape, removing investment barriers in the E&P sector is essential for ensuring sustainable growth and maintaining its vital contributions to national revenue and GDP. Facilitating investment in E&P will not only reinforce Petrovietnam’s growth trajectory but also align with the strategic objectives outlined in Conclusion 76-KL/TW, positioning Vietnam’s oil and gas industry for long-term success.

PVN