Offshore Wind Power - Petrovietnam’s Strategic Target

Hoang Quoc Vuong, Chairman of the Board of Directors of Vietnam Oil and Gas Group (Petrovietnam). Photo: Vietnamnet

- As head of Petrovietnam for over the past two years (November 24,2020-2022), what are outstanding advantages of the sector in your opinions?

The sector boasts a lot of advantages. As a special industry that involves much international cooperation, it is most outstanding for dynamism and proactiveness in accessing and staying updated on knowledge, and flexibility and creativeness at work.

I mentioned international cooperation as this is a special feature of the sector. Petrovietnam has worked with international partners since the early days, which allows and requires its staff to proactively adapt to new things in terms of both technology and international practice. This has promoted and created the outstanding feature of the industry.

- What is your concern while serving as Petrovietnam Chairman?

As you know, Petrovietnam faced some issues over the past time, which has exerted certain impacts on its operations. Therefore, my concern is how to restore and consolidate core values, making them a foundation for the oil and gas culture, and promote confidence in building and developing the group.

Last year, Petrovietnam's output reached 10.97 million tonnes and its pre-tax profit hit VND45 trillion (USD1.8 billion). Photo: VietnamPlus

- How is Petrovietnam operating?

Petrovietnam is operating comprehensively in five main areas, with oil and gas exploration and exploitation remaining an essential and vital activity. Last year, its output reached 10.97 million tonnes and its pre-tax profit hit VND45 trillion (USD1.8 billion). In the first half of this year, the output was 5.48 million tonnes and the group contributed VND66.1 trillion to the state budget. The rising petrol prices have also facilitated our operations. Therefore, it is necessary to maintain the output and fulfill the group’s strategic targets. This is very important because otherwise other activities of the group will be impacted. At the same time, Petrovietnam is working to raise the operational efficiency of its oil refineries and fertilizer plants like Phu My and Ca Mau, and address pending issues at the Nghi Son Refinery.

- Amid complex developments of the world situation, energy security has drawn the due attention of the public. How does Petrovietnam adapt to and identify development targets?

Between now and 2030, Petrovietnam will maintain its focus on exploration and exploitation activities. However, the group needs adjustments to its development strategy right now. The move aims to implement Resolution No. 55-NQ/TW issued by the Politburo on February 11, 2020 on orientations of Vietnam's National Energy Development Strategy to 2030 with a vision towards 2045, while meeting the demand for carbon neutrality by 2050. In fact, the reduction of mining output is inevitable as fossil fuel reserves are declining.

- After scalling down exploitation, which spheres will Petrovietnam focus on?

Petrovietnam plans to develop offshore wind power, which will play a very important role in the industry’s strategy.

- Why does Petrovietnam target offshore wind power?

There are several reasons. First, it lies with wind energy, especially offshore wind. Vietnam has substantial potential which needs to be fully tapped to ensure energy security. Second, we have strength in offshore wind power development. The strength comes from human resources, technical infrastructure, knowledge and experience in deploying offshore projects.

- Would you give more details?

Many enterprises of Petrovietnam are offering offshore services which match offshore wind power, such as Petrovietnam Technical Services Corporation (PTSC) and the Vietnam-Russia oil and gas joint venture Vietsovpetro. With the existing infrastructure system in Ba Ria-Vung Tau, Petrovietnam’s units there can set up rigs with a capacity of up to 35,000-70,000 tonnes, even more complicated than wind turbine bases. In fact, PTSC will sign a contract with an investor that is operating in wind power in Taiwan to make bases for 33 wind power poles, each with 14 MW. Petrovietnam’s units have proactively engaged in the work to enrich their experience for other wind power projects in Vietnam in the time ahead.

Generally, Petrovietnam has a lot of strength in joining the offshore wind power value chain as we can conduct study, design, construction and installation. Petrovietnam can also produce many components and equipment for a wind power pole itself.

Petrovietnam is operating comprehensively in five main areas, with oil and gas exploration and exploitation remaining an essential and vital activity. Photo: VietnamPlus

- What is international experience in this sector?

Many international oil and gas firms have successfully shifted to offshore wind power, with those in Denmark and Norway as examples. Moreover, as I said above, fossil fuels will gradually be exhausted after a long time of exploitation, so renewable energy, including offshore wind power, will be a suitable alternative, especially for the case of Vietnam which has a long coastline running along the country, and great technical potential, about 600GW.

- How about price competition?

With technological development, wind power will become more competitive, even the price of offshore wind power will be able to compete with that of traditional energy like coal and gas-fired electricity.

- To ensure the development of offshore wind power in Petrovietnam, which mechanisms and policies should be adjusted?

Petrovietnam has reported what need to be adjusted in Resolution No. 41-NQ/TW issued in 2015 on orientations for Vietnam’s Energy Development Strategy by 2025 with a vision towards 2035 to competent agencies. Besides, the group can make some preparations like studying and building a map of wind power potential in Vietnam from now. The work matches Petrovietnam’s capacity as the group built a map of oil and gas fields at sea. The wind power map will serve as a basis for competent agencies to identify wind power projects to call for investors.

- There is a gap between now and the time when renewable energy is maximized. To ensure energy security in the transitional period, what will Petrovietnam do?

We will maintain our operations in the oil and gas value chain.

Thank you

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