Petrovietnam quickly implement urgent tasks and solutions to cope with double impact of Covid-19 epidemic and decline in oil prices

07:06 | 13/03/2020 Companies

On 11th March 2020, Vietnam National Oil and Gas Group (Petrovietnam) implemented the Directive No.1151/CT-DKVN regarding urgent tasks and solutions to cope with the double impact of Covid-19 epidemic and the decline in oil prices.

Facing the complicated situation of the Covid-19 epidemic and the oil market, in order to improve the management and administration of production and business activities, proactively build and promptly deploy the urgent solution packages to cope with the double impact of the epidemic and low oil price, Petrovietnam has issued a Directive requiring the entire Group and its subsidiaries to actively capture and update market information on supply and demand, price fluctuation of crude oil and petroleum products, then build specific plans and scenarios for coping.

petrovietnam quickly implement urgent tasks and solutions to cope with double impact of covid 19 epidemic and decline in oil prices

Regarding the sharp and deep fall in oil prices from 9th March 2020, all Petrovietnam’s units are requested to prepare the plan for short-term shock and for the situation of long-lasting low prices at 30; 35; 40; 45; 50 USD/ barrel, including the scenarios for the worst manage production and business activities flexibly and effectively; urgently report to the Group of financial ratios (turnover, pre-tax profit, consolidated after-tax profit, parent company; remittance to the state budget) corresponding to the above oil prices, detailed solution of the units, recommendations shall be sent to the Group before 13th March 2020.

Focus on directing production and business, reduce meetings, exchanges... strengthen management of optimal cost, deploy the application of tools and solutions to reduce costs, save time and improve labor productivity (application of information technology, enhance innovations, inventions, technical improvement solutions ...). In particular, it is necessary to take appropriate and strict measures to preserve and ensure safety, avoid the impact of epidemic transmission to the areas of exploitation activities, production and operation factories to maintain the continuous and highly efficient production activities.

Actively coordinate with the units in the Group to share information, resources, markets... in order to optimize efficiency throughout the Group's value chain. At the same time, strengthen cooperation with domestic businesses having the business lines related to the products of their unit.

Also in the Directive, Petrovietnam revealed the Group has been building, updating and deploying the overall solution package to cope with the double impact of the Covid-19 epidemic and decline in oil prices. At the same time, in order to effectively implement this task, Petrovietnam requires the units in the implementation process to regularly update, report on the situation, difficulties and obstacles for the Group to promptly support and handle.