Notice No. 49/TB-VPCP dated January 25, 2014 of the Government’s Office on the conclusion opinion of the Prime Minister Nguyen Tan Dung at the review conference in 2013 and the implementation of plan in 2014 of Vietnam Petroleum Group

THE GOVERNMENT’S OFFICE

Notice No. 49/TB-VPCP dated January 25, 2014 of the Government’s Office on the conclusion opinion of the Prime Minister Nguyen Tan Dung at the review conference in 2013 and the implementation of plan in 2014 of Vietnam Petroleum Group

On January 15, 2014, in Hanoi, the Prime Minister Nguyen Tan Dung took part in conference of final review of the work in 2013 and implementing plan in 2014 of Vietnam Petroleum Group. After listening leaders of Group for report on work result in 2013, and task plan in 2014, and opinions, proposals of some delegates, representatives of relevant units, the Prime Minister Nguyen Tan Dung has had the directing opinions at Conference as follows:

I. GENERAL ASSESSMENT

In 2013, in condition where world economy recover slowly, domestic economy has many difficulties, natural disasters, storms, floods with complex changes, causing bad damages, with the effort of whole Party, People and Military, of whole political system and business community, under the leading of Party, State management, our country has reached many achievements , important results, basically finish overall objectives, targets, essential tasks which the Party, National Assembly and Government have set out.

In general achievement and result of country in 2013, there is big contribution of petroleum sector. Government appreciates results and achievements which the Group has obtained in 2013, contributing important part in stability of macro-economy, social welfare, contributing in keeping security, defense and national sovereignty protection.

Although there are many difficulties and challenges, in 2013, petroleum sector has finished in excess of criteria in main operation sectors such as: increase of reserves, production in exploitation of crude oil, gas, power, nitrogen manure, production of petrol and oil; total revenue of Group attains 763 thousand billion Vietnam dong, exceeding 18% of annual plan; specially, has remitted over 47 thousand billion Vietnam dong for state budget. These are significant criteria in condition where country has many difficulties of budget revenue in 2013.

Apart from the obtained results and achievements, the Group still remains some shortcomings as mentioned in report on final review. Leaders of Group and heads of agencies, units in Group must try to overcome, handle thoroughly, and resolve effectively to make Vietnam Petroleum Group to have stronger and more sustainable development, to be suitable to become the national leading economic group and have position in region and world.

II. OBJECTIVES AND TASKS IN 2014 AND IN THE NEXT TIME

To agree with objectives and solution groups for task implementation in 2014 set out in report of Vietnam Petroleum Group. During the course of implementation, Petroleum Group further promotes tradition, not has subjective or complacent attitude with the obtained achievements, coordinate better with relevant Ministries, sectors and localities in directing and organizing good implementation of some following key tasks:

1. Concentrate on all resources and solutions aiming to finish and finish in excess of criteria planned in 2014, strive to reach the level higher than 2013 for 5 main operational fields, in which petroleum search, exploration and exploitation is principal.

- For petroleum search, exploration and exploitation: To strengthen the work of domestic petroleum search, exploration and exploitation at privileged economy zones of 200 nautical miles, remote and isolated regions. This is key task of Group, aiming to increase reserves, production of exploitation, increase contribution in general development of national economy and contribute in protection of national sovereignty on sea.   Investment in overseas petroleum search, exploration and exploitation in regions, zones (already been selected carefully) may further implement in the principle of carefulness, ensuring efficiency and safety of invested capital.

- Gas Industry: The Ministry of Industry and Trade directs Group to concentrate on acceleration of development of gas mines at portion 118 in order to bring gas into shore in serve of gas power plant in the Central; for project of B portion, expeditiously negotiate with partners in direction of not expanding contract of mine exploitation, hold the priority right to buy mine for exploitation and bringing gas into shore..

- Electricity: Concentrate on construction of 5 Thermal-power projects as assigned, not conduct further investment in other Thermal-power and Hydro-power projects.  Assign Vietnam Petroleum Group to preside over investment in gas power plant cluster at the Central using gas from portion 118.

- Refinery and petrochemical: To push up the equitization of Dung Quat refinery according to 02 plans. To negotiate with Russian partner on taking part in capital contribution or self-invest to raise refinery capacity up to 10 million ton/year in order to increase efficiency of project; to accelerate construction of Nghi Son refinery petrochemical combined project, Long Son petrochemical combination and carry out other projects in petroleum processing under planning on petroleum development already been approved by the Prime Minister.

- Service sector: To improve capability of enterprises in petroleum services, expand petroleum development to foreign countries; have solutions to exploit effectively material facilities at Dung Quat Shipbuilding Industry One-member Limited Liability Company.

2. Perform strictly the Conclusion Notice No. 148-TB/TW dated November 28, 2013, of the Ministry of Industry and Trade, about result of 7 years for implementation of strategy on development of Vietnam petroleum till 2015 and orientating development till 2025. In 2014, carry out elaboration of Development Strategy of Vietnam Petroleum Group till 2025 and development orientation till 2035, clearly determine state management function and business function; coordinate with relevant Ministries and sectors in reviewing, amending, supplementing and completing legal documents aiming to separate public task function and production and business task, report to the Ministry of Industry and Trade for consideration and submit to the Prime Minister for approval for the completed development objectives of Vietnam petroleum Group, having high competitive capability and becoming a Petroleum Group with position in region and world.

3. Expeditiously implement effective restructure of Vietnam petroleum Group under Decision No. 46/QD-TTg dated January 05, 2013 of the Prime Minister. Gradually build Group to be more adequate, has more sustainable development, more effective, in which, a key solution in equitization and reduction of contributed capital rates of Group at member enterprises.  To carry out equitization of units: Binh Son refinery company, Dung Quat Shipbuilding Service Company, Vietnam Old Corporation, Petroleum and Power Corporation, keep Mother company – Group and Petroleum Exploration and Exploitation Corporation. Investment in outside trades must be calculated carefully with the aim where the capital withdrawal is effective and attached with restructure.

To require Group to draw experience and clarify duty of collective and each individual in losses from business that cause difficulties for Group, of the Vietnam Petroleum construction and installation Joint-stock Company. Strictly handle violations. Report to the Ministry of Industry and Trade and request consideration and report to the Prime Minister.

4. Group needs to attach special importance to the work of building organization, pay attention to Party development, training and building officers, workers in petroleum sector to become a solidarity collective; improve the work of business administration.  Strictly coordinate with Ministries, sectors to part in, support for the work of ensuring security and defense, contribute in protection of national sovereignty on sea.

Government’s Office notifies relevant Ministries and agencies for information and implementation.

For the Minister and Chairman of Government’s Office

Deputy Chairman

Nguyen Huu Vu