In 2014, PetroVietnam Gas Joint Stock Corporation (PV GAS) deployed its production and business plan on the conditions that the world and domestic economy was on track of recovery but still plagued with many difficulties. In the country, credit growth remained low and non-performing debts were not improved; world LPG prices constantly fluctuated and deeply dropped; the crude oil reached its lowest record in the past 4 years… However, PV Gas actively recognized, anticipated obstacles and introduced appropriate solutions, promptly handling difficulties in management, creative in production and business; taking advantage of opportunities, promoting the full potential strength of the whole political system. With high solidarity, spirit from PV GAS leaders and personnel, PV Gas has successfully fulfilled most of its tasks and set targets.
With smart and close instructions from PVN, guidance and support from central ministries, departments, local authorities and partners, PV GAS has passed 2014 with remarkable achievements. That is the safe and continuous operation of gas works, without any incidents adversely affecting people, property and PV Gas’ reputation, completing and exceeding most of the production and business targets, especially those regarding to profit, State budget contribution, production of dry gas, LPG and condensate from Cuu Long gas system have been completed from 2 to 4 months ahead schedule according to the annual plan. PV Gas has been ranked in the list of Top 50 companies with largest market capitalization in Southeast Asia by Nikkei Asia Review and in the top 2,000 largest enterprises in the world by Forbes; remaining as one of leading companies of PVN as well as the stock exchanges in term of profit; with significant contributions to the national budget, jointly with PVN contributing to the nation-wide macroeconomic stability.
In 2014, PV GAS has well performed, boosting and strictly implementing Security – Safety – Health – Environment and inspection tasks. All of the gas systems, production facilities were safely operated, without any incidents affecting people, property and PV Gas’ reputation. Total safe working hours of the year reached 6.3 million hours. PV Gas’ co-ordination with the Command of Vietnam Coast Guard, the Navy Command, Vietnam Maritime Administration, Exploitation and Protection of Aquatic Resources and provincial local governments in good performance of patrol and communication to protect underwater gas pipeline system, received the support from local residents.
All the gas systems of PV Gas have been in safe, stable and constant operation. The total output of wet gas brought onshore and sold for EOR project was 10,175 million m3, representing 104% of the annual plan; PV Gas has produced and supplied 9,971 million m3 of gas (including 9,965 million m3 of dry gas and 6 million m3 of wet gas for EOR project), representing 104% of the annual plan, increased by 5% over the same period in 2013; operating revenues reached 40,514 billion VND, or 114% of the plan, increased by 25% over 2013.
At the Cuu Long gas system, upon completion of the corrective maintenance in the phase of halt from 10/9-18/9/2014 and resumption of the system operation 79 hours ahead of schedule as well as ensuring the system’s stable operation, putting into operation 05 gas compressor units on the CCP at some points in time and achieving stable output from some fields, PV Gas has completed its annual plan at a high level: 1,263 million m3 of gas, representing 129% of annual plan, increased by 5% over the same period of 2013. In particular, output of LPG produced from Dinh Co has reached the target 4 months ahead schedule and Condensate nearly 3 months.
At Nam Con Son (NCS) gas processing and transportation system, PV Gas’ transportation system and processing has been in stable operation; gas assignment and moderation tasks have been reasonably conducted, significantly contributing to completion of the gas supply plan, given the fact of difficulties of gas supply disruption from some fields, as well as low gas consumption for power generation during the rainy season. PV Gas has supplied 6,857 million m3 of gas, representing 104% of the annual plan, increased by 9% over the same period in 2013.
At the PM3-Ca Mau gas system, during the annual phase of complete halt, PV Gas has completed the corrective maintenance work 96 hours ahead schedule and always ensured continuous and safe system operation. However, as the systems of the field owners had more incidents than previous years, leading to interrupting/stopping/reducing gas supply, coupled with partners consuming less gas for power generation, plus long downtime of Ca Mau Power Plant for corrective maintenance work, all these resulted in PM3 gas output only reaching 1,845 million m3, equal to 95% of the annual plan.
During the year, the execution, management and monitoring of gas purchase and transportation contracts have been strictly implemented by PV Gas in compliance with regulations in its best effort to supply gas to customers. Production and business of liquid products remained at high volume. As for production, the implementation of appropriate operating regime, maintaining the high recovery rate of liquid products and the higher volume of wet gas from Cuu Long brought onshore have contributed to exceeding the target in annual liquid production, reaching 57,560 tons of condensate – equal to 122% of the annual plan; 292,300 tons of LPG – equal to 138% of the plan.
Regarding to business, PV Gas has exceeded the annual plan on output and business sales of LPG, condensate; supplied the market with 1,044,300 tons of LPG (With Dinh Co reaching 300,700 tons, Dung Quat – 75,100 tons, import and international trading – 668,500 tons), representing 111% of the annual plan (If taking subsidiaries into account, less overlapping outputs, PV GAS has supplied to the market 1,269,329 tons of LPG), translating to the revenue of 20,285 billion VND, 121% of the plan; providing the customers 57,560 tons of condensate, 122% of the plan, equivalent to the revenue of 813 billion, equal to 149% of the plan. However, wide fluctuations and deep drop of LPG price in the world, and the crude oil reaching its low record in the past 4 years have affected PV Gas’ business performance in LPG.
Gas transport operations, control of quality and gas product volume differences has been carried out in strict compliance with regulations, satisfying customer demands. No customer complaints were reported on gas product quality and services. PV Gas has transported 6,857 million m3 of NCS gas, yielding 2,522 billion VND in revenue, representing 115% of the annual plan; transporting 1,845 million m3 of gas from PM3 -Ca Mau, equivalent to 1,417 billion VND, accounting for 98% of the plan; fully transporting NCS condensate on demand, reaching over 32 billion VND in revenues, equal to 122% of the plan.
Corrective maintenance, verification and calibration tasks were carried out with quality according to the plan and process, ensuring stable and constant operation. PV Gas also completed the corrective maintenance ahead schedule at the gas works requiring gas supply stop during such tasks, including: The corrective maintenance of LPG tanks at Thi Vai storage, gas system of PM3-Ca Mau and Cuu Long, putting the gas system into safe operation ahead schedule (Bach Ho central gas compressor, Dinh Co Gas Proccessing Plant ahead 79 hours and PV Gas’ Ca Mau Gas system 44 hours, 79 hours and 96 hours ahead of schedule, respectively). Besides, PV GAS also completed survey, repairing of defective points of many pipelines.
PV Gas has actively carried out construction investment works, strictly following plans, schedules and ensuring capital sources according to disbursement schedule of the projects. With great support from PV GAS- parent company, its subsidiary and affiliate companies actively deployed their business and production activities. 3/6 companies had their ROE (net profit /charter capital) of over 35%, but some companies failed to achieve high performance in business activities. Usage and supply of services have always been implemented by every member company in strict compliance with current regulations and PVN’s directions. In 2014, services within and outside the oil and gas industry have contributed nearly 14% of PV GAS’ revenues, equivalent to VND 9,116 billion (services in the industry accounted for approximately 74%), mainly in transport services for gas and gas products, supply of low pressure gas, CNG for industrial use, supply of CNG/LNG for transportation/urban areas, pipe manufacturing, pipe coating and storage lease. These services have always satisfied customer requirements in term of quality, quantity and schedule. In addition, PV GAS has used services worth of VND 5,966 billion (services in the industry accounted for approximately 80%), mainly for design, procurement; construction and installation of gas works; maintenance, repair and procurement of equipments for operation, gas product transportation; insurance, testing, appraisal, scientific research and training,...
