Informing Lao Dong Newspaper, Vietnam National Industry - Energy Group (Petrovietnam) said that at the CEO meeting at the end of February, the key content emphasized by the Group was to assess market developments and prepare scenarios for fluctuation management. Faced with the complex developments from the conflict in the Middle East that are strongly affecting the global energy market, Petrovietnam affirmed that it has been proactive and ready with response plans.
Before the conflict occurred, Petrovietnam developed a scenario of the Hormuz Strait being closed and immediately directly/with a document directing production and business units to closely follow geopolitical and market developments to proactively develop scenarios, have production adjustment solutions, prepare goods sources, and make maximum efforts to ensure gasoline and oil supply for the domestic market.
The Group has directed the Group's Representative at Nghi Son Refinery and Petrochemical Company to work with foreign parties participating in the project to urgently supply spare oil to maintain the plant's operating capacity.
Petrovietnam also works with Oil and Gas Contractors (Oil Owners) to maximize the sale of domestically exploited oil to domestic Oil Refrigeration Plants in urgent cases; Direct PVOIL to proactively develop import plans to supplement and diversify supply sources and transport routes according to each scenario; Plants strengthen safety control and optimize operating capacity.
In the immediate future, Petrovietnam said it will still ensure supply in the next few months. However, in the next phase, depending on the actual developments in the Middle East, functional agencies need to soon consider removing bottlenecks in mechanisms so that the Group can flexibly respond, protect growth goals and national energy security.
Especially in the context that Petrovietnam is being restricted from the right to import raw materials and crude oil for NMLD (according to Decree 83/2014/ND-CP); along with a tax rate of over 0% on Condensate and Naphtha, it is affecting production efficiency, proactiveness and diversification of input raw material supply of the Group.
Accordingly, to strengthen the ability to respond in emergencies, Petrovietnam proposes that the Government consider allocating the right to import crude oil and raw materials to the Group and its member units to promptly supply domestic oil refineries. At the same time, the Group proposes that management agencies conduct a comprehensive review of current regulations, especially Decree 83, to adjust energy policies in accordance with the new context.
The Group also expressed its desire to be authorized to decide on requesting Contractors (Oil Owners) to sell their own crude oil in the Vietnamese market in urgent cases that threaten energy security. In addition, to diversify supply sources, the Group also proposed to soon have preferential mechanisms to promote the blending and widespread circulation of E10 gasoline.
In terms of economy, Petrovietnam hopes that the State Bank will direct commercial banks to have policies to ensure foreign currency sources for businesses when the demand for fuel imports increases. Regarding tax policies, the Group proposes to consider bringing import tax on raw materials for production and blending such as Condensate, Naphtha, DO bottom to 0% equivalent to crude oil to reduce cost pressure and increase production efficiency.
In market management, Petrovietnam requests the Ministry of Industry and Trade to closely monitor the implementation of total sources of key traders, avoiding the situation of excessive supply pressure on state-owned enterprises.
In particular, in an effort to find stable operating solutions for the Nghi Son Refinery and Petrochemical Complex, Petrovietnam proposed to the Government and the Ministry of Foreign Affairs to influence Kuwait and Japan partners. The goal is to mobilize crude oil reserves from Japan and South Korea to temporarily support the plant to operate continuously and safely, especially in the upcoming peak period.
