Hanoi (VNA) ✨- General Director of the Vietnam Oil and Gas Group (Petrovietnam) Le Manh Hung has highlighted the crucial role of the service sector, one of the five principal areas of the group, in its production and business activities and development.

In his speech at the 2023 Oil and Gas Services Conference of the group held recently in Hanoi, Hung said that although the service sector has recorded significant achievements, challenges still remain. Hung suggested participants propose measures to address difficulties, advancing the group's service sector. Discussions and reports presented at the event also highlighted both challenges and opportunities. Accordingly, Petrovietnam’s service units continued to leverage their strengths and roles in providing services. They displayed a steadfast commitment to maximising their contributions and optimising industry-provided services. The quality of service provision by units in the industry has been increasingly improved, meeting the demands and requirements of users. In 2022 alone, Petrovietnam’s service revenue reached 199.8 trillion VND (8.4 billion USD), surpassing the year's target by over 78%, accounting for 34% of the consolidated revenue of the group, and marking a remarkable 39% increase from the previous year. This exemplifies the increasingly crucial role of oil and gas service activities within Petrovietnam's value chain. To minimise negative influences caused by global political and macroeconomic instabilities, and fluctuations of markets, delegates underlined the need to promote the formation and expansion of interconnected chains to optimise material resources and enhance investment efficiency, thus extending their oil and gas service provision beyond the scope of Petrovietnam. They said that this also serves as motivation and leverage for service units to proactively seek suitable partnerships that align with their capabilities, and enhance their competitiveness in delivering services for the Group's large-scale projects in the future. Chairman of the Board of Members of Petrovietnam Hoang Quoc Vuong acknowledged and highly evaluated insights shared at the conference. He underlined the importance of decentralisation to enhance initiative within service units and build an incentive mechanisms to foster closer collaboration among service providers within the group. It is also necessary to promote the cultivation of corporate culture and proactive anticipation of energy transition trends, in order to facilitate the swift implementation of digital transformation throughout the group and its provision of technical service abroad, Vuong said. In his conclusion, Hung spotlighted the steady growth of Petrovietnam's oil and gas service sector in recent years. He commended the sector for successfully meeting domestic and international oil and gas market demands, expanding its reach to provide technical services overseas. He emphasised the need to exploit the service sector's capacities and oil and gas technology strengths, especially in fields aligned with energy transformation trends. Petrovietnam's overarching aim is to become a prominent energy industry group, requiring the oil and gas service sector to evolve into a comprehensive "industrial and energy service sector". This necessitates strategic adjustments, efficient asset utilization, and enhanced inter-unit connectivity. The goal is to sustain the market share of traditional oil and gas services, ensuring economic efficiency while elevating service quality. Hung asked for efforts to accelerate the restructuring of units within the oil and gas service domain, fortifying their pivotal role in connecting Petrovietnam’s activities. They also need to formulate key product and service lists, and perfect internal management systems, and boost decentralised governance. Within the framework of the conference, seven minutes and memoranda of understanding were signed between units in Petrovietnam, aiming to expand implementation and bolster the effectiveness of connection chains across the group./.