Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (204)

GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT DEVELOPMENT STRATEGY FOR PETRO VIETNAM EXPLORATION PRODUCTION CORPORATION 2011 - 2015 Group Number: 05 Student's name: Nguyen Dinh Duong Nguyen Thi Hong Minh Ngo Van Thang Dong Thi Thanh Thuy HANOI 2011 DECLARATION We hereby certify that this capstone project report represents the result of our own research No other person’s previously published or written work has been used without due acknowledgement in the text No material has been used in this report which has been accepted for the award of a degree or diploma in any tertiary institution Group - Class: GaMBA.X0110 LIST OF ABBREVIATIONS WTO: World Trade Organization OPEC: Organization of petroleum exporting countries PVEP: Petro Vietnam Exploration and Production TDTL: Exploration XDCB: Fundamental construction TDKT: Exploration and Production LIST OF TABLES Table 2.1: Operation record of PVEP 2006-2010 Table 2.2: New findings of petroleum 2006-2010 Table 2.3: Implementation of increasing reserves 2006 - 2010 Table 2.4 Reserves of by 31/12/2010 Table 2.5 Implementation of production plan of PVEP 2006 – 2010 Table 2.6: Some basic financial items of PVEP and Petronas Carigali Overseas Table 2.7: Crude oil export market of Vietnam in the first months of 2011 Table 2.8: EFE for PVEP Table 2.9: Structure model of PVEP Table 2.10: Training programs and participants from 2007 to 2010 Table 2.11: Business objectives of PVEP 2006 – 2010 Table 2.12: IFE matrix for PVEP Table 2.13: SWOT matrix for PVEP Table 2.14: IE matrix PVEP Table 3.1: QSPM matrix PVEP Table 3.2: Some specific objectives of development plan to 2025 LIST OF FIGURES Chart 2.1: Structure of oil export of Vietnam in the markets in the first months Chart 3.1 : International demand for crude oil 1990-2010 and estimate until 2025 Chart 3.2 : International demand for gas 1990-2010 and estimate until 2025 Chart 3.3: Oil and gas reserves and potentials in Vietnam Chart 3.4 : Oil and gas output 2007-2010 and estimate 2011-2025 Figure 3.5 Plan on developing human resources in 2011 – 2025 period TABLE OF CONTENTS Introduction Chapter I: Theoretical Rationale Of Business Strategy 1.1 Business Strategy 1.1.1 Concepts 1.1.2 Types of strategies 1.2 Strategy building process 1.2.1 Setting business mission 1.2.2 External Assessment 1.2.3 Internal Assessment 1.2.4 Strategy Analysis and Choice 1.3 Tools to build business strategies 1.3.1 Collecting and systemize information 1.3.2 Matching stage Chapter II: Reality of oil exploration activities of PVEP 2.1 Briefing actual situation of PVEP 2.1.1 Overview of PVEP 2.1.2 Business situation of PVEP from 2006 to 2010 2.2 Analyze External factors to build the strategy for PVEP 2.2.1 Macro Environment 2.2.2 Micro Environment 2.2.3 Evaluation of Opportunities and Threats 2.2.4 EFE Matrix for PVEP 2.3 Analyze Internal factors to build the strategy 2.3.1 Organization Structure 2.3.2 Human Resources 2.3.3 Marketing 2.3.4 Management 2.3.5 Financial and accounting 2.3.6 Research and Development 2.3.7 Information Technology and Information System 2.3.8 Evaluation of Strengths and Weaknesses 2.3.9 IFE Matrix 2.4 Developing SWOT matrix for PVEP 2.5 Developing IE Matrix for PVEP Chapter 3: Development Strategy of Petro Vietnam Exploration Production Corporation 2011 - 2025 10 10 10 10 12 12 13 13 14 15 15 17 19 19 19 21 26 26 33 43 44 45 45 48 50 50 51 53 53 53 55 56 57 60 3.1 Analysis of possibly feasible strategies 3.1.1 General analysis 3.1.2 QSPM Matrix analysis 3.2 Energy demand forecast 3.2.1 International demand for oil 3.2.2 International demand for gas 3.2.3 Oil and gas reserves and potential in Vietnam 3.2.4 Oil and gas out put in 2007-2010 and estimate 2011-2025 3.3 Strategies for PVEP from 2011 – 2025 3.3.1 Content of strategies 61 61 62 63 63 64 64 66 67 67 3.3.2 Objectives of strategies 3.4 Solutions for applying strategies 3.4.1 Human resources development 3.4.2 Solutions on management 3.4.3 Solutions on science and technology 3.4.4 Solutions on investment and financial 3.4.5 Solutions on health safety and environment 3.4.6 Solutions on national security Conclusion 68 69 69 73 74 76 79 81 82 INTRODUCTION Oil and gas industry is a key economic sector of the country and is greatly paid attention to by the Party and State In the past years, Petro Vietnam has made an enormous improvement with a total output of over 100 ton (ranks the third in Southeast Asia in exploiting crude oil) Petro Vietnam has conducted a comprehensive operation from explorating, exploitating to storing, processing, transporting, distributing refining and petrochemical products and service Initially operated on budgetary funds, Petro Vietnam has had a capital source for development, contributing a considerable sum to the National budget and has played an important role in getting the Nation out of crisis in the 1990s However, gas and oil exploiting in the past years has shown a limited amount of oil deposit and poor conditions in exploiting oil and gas Thus, there should be plans to increase the oil and gas deposit, assure the certain sum to the national budget and energy security of the country Along with the exploration and extraction of oil and gas in the country, The implementation of investments in the field of exploration and exploitation of oil and gas overseas is to deploy large undertakings of the party and the State aiming at building Petro Vietnam into a strong economic Corporation with exploration and production of oil and gas both domestically and internationally, increasing oil and gas reserves as the basis for the growth of the sector and at the same time contributing to assure energy needs for the development of the national economy In order to implement the above strategy, Petro Vietnam has unified functions and tasks of each Department in the Corporation, assign entire work of exploration and production both domestically and internationally to PVEP This is a proper and strategic vision of Corporation leaders to develop its activities in a professional manner Assigning clear functions and tasks will create favorable conditions for each unit to give appropriate directions in accordance with the international business environment as well as its own potential On the basis of practical knowledge during working, research, investigation process of petroleum exploration and production activities in PVEP, group has chosen the title: "Development Strategy for Petro Vietnam Exploration Production (PVEP)" The purpose of the title is to propose long term development strategies for PVEP and solutions to implement these strategies properly on the basis of analysis of the practical situation inside or outside the Corporation and the competition within the sector Major assignment includes three parts: Chapter 1.Theoretical rationale of business strategy Chapter Reality of oil exploration of PVEP Chapter Development strategy of PVEP for period 2011 - 2025 During study, we - group have received a lot of valuable opinions of members who work in the Corporation as well as lecturers Due to limited time and understanding of the strategy, it is unavoidable to make mistakes Therefore, any comments, feedbacks or suggestions to improve the practicality of the topic will be highly appreciated and enhance the practice of the subject Sincerely thanks CHAPTER I: THEORETICAL RATIONALE OF BUSINESS STRATEGY 1.1 Business Strategy 1.1.1 Concepts According to Chandler, strategy is "defining long-term objectives and purpose of a business and implementing a series of actions as well as allocating necessary resources to achieve that goal." (Chandler, 1962, Strategy and Structures: the MIT Press, Cambridge, Massachusetts) " According to Quinn, "strategy is the formula or plan combining the primary objectives of enterprise, policies and sequence in a unified manner" (James Brian Quinn-1980 Strategic for Change: Logical Incrementalism Homewood, Illinois, Irwin) According to Johnson and Scholes "strategy is the direction and scale of enterprises in the long term to take advantage for the enterprise by changing and allocation of resources in a challenging environment to meet market demands and aspirations of its shareholders" In practice, application of the strategy is divided into three levels The first level is the strategy at company level (Corporate Strategy) towards the implementation of the common goals of the enterprise and meet the expectations of shareholders The second level is strategy at business unit level (Business Unit Strategy) focusing more on how to succeed in competition in a market Third-level strategy is strategy at operation level (Operational Strategy) focusing on organizing departments of an enterprise to implement Business Unit Strategies This research puts main focus on Corporate Strategy but other strategies are also paid attention to because they are also very much related to the Corporate Strategy 1.1.2 Types of strategies 1.1.2.1 Integration strategies The enterprise can use the integration strategies to increase the efficiency and decrease the dependency on the distributors or suppliers or make its competitors part of the enterprise The enterprise can use forward integration, which gains ownership or increased control over distribution channels or use backward integration, which gains ownership or increase control over a firm’s suppliers or horizontal integration aiming at seeking ownership or increased control over competitors These integration strategies are applied if they are profitable to the company and the company is qualified to implement them 1.1.2.2 Intensive strategies Intensive strategies are used in order to improve the competition of the corporation in the present products Market penetration is applied to increase market share for the present products or services Market penetration involves in increasing advertisement, the number of salespersons or promotions… The company can also introduce present products in new geographic areas, which is called Market development The third strategy – product development aims at increasing sales by improving or modifying present products 1.1.2.3 Diversification Strategies Concentration on one economic sector or business sector might be risky for an enterprise, so diversification strategies are applied to decline such risks Diversifications strategies consists of concentric diversification – adding new but related products and services or horizontal diversification – adding new and unrelated products for present customers or conglomerate diversification – adding new and unrelated products to new customers 10 • Develop oil and gas industry based on selecting available strengths and comparative advantage to quickly adapt and stand firm in the competitive market in the region and the world • Develop oil and gas industry based on not only domestic available resources but expanding oil and gas activities abroad contributing to the national energy security • Develop State enterprises in order to ensure that they have dominant role in the oil and gas industry At the same time, promote capitalizing enterprises of oil and gas in the service sector, storing and distribution of petroleum products • Develop of oil and gas industry coupled with conservation of natural resources, ecological environment and saving energy for sustainable development In addition to the general development strategy orientation of the whole industry, exploration activities abroad have to adhere to some principles relevant to the characteristics of the activity include: - Investing abroad has to ensure increases in the value of PVEP by searchingdiscovery- possessing oil and gas reserves and get interest from investment in projects of oil and gas exploration overseas In other words, the investment abroad of PVEP is aimed at making profit and at the same time, increasing oil and gas reserves, serving the country's energy needs in the coming period - The oversea investment must focus on some following regions and territories:  The Middle East with huge oil reserves as well as sweet and light oil quality;  The Central/South America with huge oil reserves and good diplomatic relations with Vietnam;  Enhancing cooperation with countries in the Southeast Asia  Paying attention on markets like Russia and countries in the Former Soviet Union with traditional cooperative relations with Vietnam 67 - Structuring projects overseas of PVEP has to be appropriately balanced to ensure development and expansion of PVEP, self balance budget, minimize the risk An appropriate structure is that there should be balance in projects of exploration and production, oil and gas, even geographical distribution of projects - Human resources shall be considered as basic elements to gain every success in developing PVEP both domestically and abroad 3.3.2 Objectives of strategies Table 3.2 : Some specific objectives of development strategy to 2025 No Targets of growth By 2015 By 2025 Equity (VND 1,000 billion) 140 280 Total assets (VND 1,000 billion) 420 940 Oil reserves of PVEP (million tons equivalent) 370 487 - Domestic 203 264 - Overseas (having mines) 167 223 330.000 520.000 Exploited output (Barrels of oil equivalent/day) Standing projects 81 117 Self-managed projects 24 35 Total revenue (VND 1,000 billion) 150 300 Return on equity 37% 29% The number of laborers (person) 2.740 3.650 10 Ratio of alternative reserves 1,5 1,4 Note: (*) including Junin Block, Venezuela; 3.4 Solutions for applying strategies 3.4.1 Human resources development 68 3.4.1.1 Solutions on human resources management - Building and developing consistent Competence Models in the entire PVEP for each position in the direction of standardization and high specialization in the region and in the world Arranging cadres to appropriate position and capacity, creating favorable conditions and belief for cadres in implementing assigned task  2008-2010 period: Having deployed appropriate Competency Models with the current situation of PVEP; reaching to the qualification closing to oil and gas engineers and experts in big oil and gas companies in the Southeast Asia and North Asia (Petronas, Pertamina, KNOC, etc.);  2011-2015 period: Completing and developing Competency Models for the staff of engineer, experts and management cadres; reaching to the qualification closing to oil and gas engineers and experts in big oil and gas companies in Asia and Europe;  2016-2025 period: Completing and developing Competency Models for the staff of engineer, experts and management cadres; reaching to the qualification closing to oil and gas engineers and experts in big oil and gas companies in Europe and America - Building and developing system of standard processes from recruiting – training – employing – evaluating – treating cadres in accordance with management mechanism, business and production of PVEP in the market orientation In the case that training and recruitment has not kept up with business and production demand or specific technologies, employing domestic/foreign experts with high professional qualification to work for PVEP Appointing and shifting cadres with good ethics into essential positions that are suitable with their professional qualification; determining to appraise the level of task completion, 69 ensuring public, fair, and transparent appraisal in terms of competence and work performance; - Diversifying human resources, recruiting laborers from many sources, including oversea Vietnamese and foreigners to meet the requirements of PVEP - Expanding and intensifying cooperation with Vietnamese and foreign partners to promote, use and share human resources under win-win principle 3.4.1.2 Solutions on training and developing human resources - Making plan on training and developing human resources, ensuring both basic and in-depth training under appropriate forms: e-learning, full-time training, on-job training, self-study, etc; combining training and scientific research serving the development of PVEP; - Deploying e-Learning in the entire Corporation and projects; basically renovating training; ensuring wide, continual, convenient and appropriate training; ensuring career development orientation; - Deploying on job training program at projects in parallel with elearning to combine theory and practice; - Shifting cadres to boost training via work; establishing a professional staff; and optimizing resources; - Giving requirement on English qualification in Competence Models to universalize and enhance English skill, considering English as the second language after Vietnamese of cadres and staffs at PVEP; - Specifying the responsibility on training and developing human resources to cadres along with clear reward and punishment policy; 70 - Cooperating with domestic and foreign training institutes in the fields of training and developing human resources to implement training and ensure long-term human resources Expanding/enhancing cooperation with Vietnamese and foreign partners to take advantage/share human resources of partners in developing business and production of PVEP 3.4.1.3 Solutions on labor regime and policy - Establishing suitable regime and policy to the organizational structure under the principle that responsibility must associate with interests; pay salaries to the right people, right levels of devotion and work performance; - Basically renovating regime and policy to labor forces with high professional qualification and applying breakthrough regime and policy to attract both domestic and foreign talented laborers; - Ensuring competitiveness in attracting talented people and highquality laborers, striving to reach an annual income growth rate of 15-20% for cadres and staffs of PVEP, especially minimum salary/wage and regime-policy to laborers with high professional qualification must be equivalent with salary/wage of laborers at leading oil and gas joint-ventures/companies in the region 3.4.1.4 Building corporate culture of PVEP: - Step by step building knowledge and professional identity, dare to think, dare to and dare to take responsibility in the corporate culture of PVEP; - PVEP puts knowledge first; knowledge in professional qualification; knowledge in work deployment; knowledge in daily work, etc Taking knowledge as the basis to dare to think, dare to and dare to take responsibility professionally 3.4.1.5 Human resources plan in 2010 - 2025 period of PVEP: 71 Human resources development plan by year in 2011 - 2015 period and vision to 2025 as follows: Figure 3.5 Hunan resources plan in 2011 – 2025 period 4000 3500 3000 2500 2000 1500 1000 500 Ot her pro Other projects Participated projects Joint-venture Executive projects Apparatus of the projects Totalhuman resources Note: 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 81 234 725 923 1983 20 87 259 775 1017 2158 20 95 259 825 1121 2320 20 101 296 875 1233 2525 25 104 296 925 1387 2737 25 109 296 1000 1423 2853 25 115 321 1050 1444 2955 25 123 346 1100 1465 3059 25 131 383 1175 1486 3200 25 139 396 1250 1507 3317 25 143 433 1325 1528 3454 25 146 421 1325 1549 3466 25 148 458 1350 1570 3551 25 153 433 1400 1591 3602 25 153 458 1400 1612 3648 + There must be reasonable sustentation of human resources to ensure the management of projects + The number of human resources in the management apparatus will be quite stable by 2020 Human resources increase by the number of projects 72 3.4.2 Solutions on management Upgrading the system and management capacity of management apparatus at all levels; managing flexibly and actively integrating into the world; enhancing decentralization; being proactive and strengthening personal responsibility; deploying recruitment/or employing directors (even foreigners) in some member units/projects Specifically: - Strengthening the management apparatus; establishing a professional, effective and appropriate management mechanism to the operation of an international oil and gas company, especially in decision-making process; - Strongly decentralizing and clearly defining the responsibility of each department/individual with the motto of harmoniously combining factors, namely title – right – responsibility – and personal interest of cadres and laborers, ensuring the sustainable and sound development; minimizing red-tape; and enhancing the effective coordination among departments of PVEP and between PVEP with its member units to boost business and production; - Building and applying Management System of PVEP in accordance with standards of an international oil company; - Building and applying processes for fields of operation of PVEP and suitable economic and technical norms with international common rules of exploration and exploitation; - Applying risk management methods at international oil and gas companies into the operation of PVEP; - Using information and technology in managing and building Enterprise Resource Planning (EPR); building quality management system (ISO) to raise management efficiency and develop PVEP into a new high; 73 - Strengthening leadership and the role of Party organization in PVEP; decisively fighting against negative signs, corruption, waste; promoting solidarity and democracy; encouraging cadres and staffs to well complete the assign tasks 3.4.3 Solutions on science and technology Research/apply selectively new and advanced technology, in the field of exploration and production of oil and gas in a safe and effective manner Focus on research, improvement and application of modern technology in the following areas: - Exploration: improving the quality and the resolution of seismic 3D served in exploration of small mines and non-structural traps; - Drill: optimize the structure of the wells, drilling technology, solution, drill… to drill faster and safer with lowest cost; - develop production of small /marginal mines with high concentrations of CO2, extraction of oil in fractured stones, secondary production, solutions to increase recovery coefficient; exploiting heavy oil deposits, deposits in the area of deep water, offshore; - Invest in research and application of technical solutions of exploration and exploitation of new resources: Coal Bed Methane and hydrate, etc Promote the study and application of advanced technologies in the field of management and administration in order to enhance the efficiency of production Cooperate with scientific research units within and outside the sector, foreign partners to develop the research and technology Propose and construct legal framework, favourable policies and application technology development to develop production of small/marginal mines: In the traditional sedimentary tanks of Vietnam recently and in the near future, oil and gas discovery will be mainly small and marginal mines Therefore, along with the investment and application of new technologies for exploration and exploitation in 74 deep waters, the development of marginal mines is one of the strategic objectives in the future In order to extract marginal mines efficiently, there shall be following solutions: - Propose the Government to have favourable legal framework, policies to encourage operators to develop mining such as to adjust natural resources tax… - PVN/PVEP performed the role of the host country in requiring operators to implement development method once the projects are beneficial to the parties involved - PVN/PVEP plays role of orientation, planning to develop oil and gas mines in general and especially marginal deposits when such deposits belong to different operators - For technical solutions to reduce investment and operating costs  Using excess processing capacity from nearby mines reduces investment and operation cost This method has been applied very efficiently for CNV and NR-DM mines  Mobiliz  Floating Production Unit (CIRCUITS that) shall be used for areas of deeper water than 1.80 m  For gas mines, a common infrastructure system aiming at reducing the cost of building and transporting gas 3.4.4 Solutions on investment and financial 3.4.4.1 Investment - Building/ensuring reasonable investment structure on exploration and exploitation in both domestic and foreign markets in terms of investment portfolios and product structure etc.) to meet short-term targets; ensure the sustainable/long-term development of PVEP; at the same time, meet the general targets of the Government and the Corporation 75 - Applying risk management measures and building a system of economic and technical criteria - Building economic and technical norms to build/approve budget and manage cost effectively - Intensifying the supervision on investment efficiency with some measures like periodically checking/evaluating investment portfolios to have rational investment priorities; closely managing investment from building/approving to deploying implementation program and budget of projects and of PVEP 3.4.4.2 Finance To realize strategic objectives of PVEP to 2015 and 2025, PVEP needs to synchronously carry out two important groups of measures, namely (1) Group of solutions on raising financial management quality; improving capital efficiency and (2) Group of measures on ensuring capital sources for activities of the Corporation: - Solutions on improving financial management quality and raising capital efficiency: • Building and completing internal management process and regulation; • Effectively using invested capital: appraising economic efficiency; checking investment portfolios to have reasonable investment priority; strictly enhancing and implementing financial controlling mechanism in both domestic and foreign markets; • Managing cash flows: Concentratedly building and implementing cash flows at the Corporation; tightly managing work program deployment and budget of projects; appealing for capital from contractors; balance in the accounts of member companies and branches; 76 • Training in-depth, reinforcing qualification and establishing a strong staff of cadres in charge of finance and accounting in both quantity and quality - Group of solutions on ensuring capital for the Corporation • Orientation on balancing capital of PVEP is proactive and flexible in arranging capital; gradually reducing capital burden for the Corporation; aiming at being self-reliant in capital; however, 2010-2015 is the period for speeding up investment to ensure growth targets, especially the objectives of ensuring output, scale and investment of PVEP from now to 2015 and vision to 2025 are very high These sources of investment come from equity and mobilized capital (loans); therefore, the insurance of suitable investment capital with the operation of the Corporation is one of perquisites to realize strategic objectives as well as the planning of the Corporation to 2015 as well as to 2025 The annual equity raising according to the roadmap on equity raising at item 4.2, is implemented from two sources:  Annual profit used by the Corporation to invest in Investment and Development Fund of PVEP with the proportion: + 30% annual profit of PVEP for 2011 – 2017 period; + 22% annual profit of PVEP for 2018 – 2020 period; + 20% annual profit of PVEP for 2021 – 2025 period  The Corporation allocates additional investment via raising charter capital to 2015 (after 2015, apart from the carry-over profit mentioned above, the Corporation will not have to supplement charter capital for PVEP) 77 • Solutions on invested capital for exploration and exploitation:  To exploration projects: Attracting capital by finding joint-venture; at the same time, exchanging stakes with foreign partners to share risk and cost;  To projects on developing mines and projects on purchasing assets: Borrowing under the form of project finance; selecting strategic partners both in domestic and oversea markets to cooperate with PVEP in order to take advantages of resources in terms of capital, technology, management, etc of partners • Solutions on capital mobilization: Flexibly using forms of capital investment, including:  Mobilizing capital from financial institutions such as borrowings for projects, borrowings for company, credit borrowings for exports; borrowings based on evaluation on mines’ reserves, etc  Preferential capital sources: + Exploration Fund of the Corporation; + Preferential loans from the Corporation via PVFC  Issuing corporate bond 3.4.5 Solutions on health safety and environment - Setting up long-term objectives and orientation on developing Health – Safety – Environment regulation of PVEP under modern and suitable direction with socio-economic development, scientific & technological advancement catching up with progressive oil and gas companies in the region and in the world; 78 - Effectively building and operating Health – Safety – Environment management system in the entire Corporation; - Building Health – Safety – Environment culture in the whole PVEP; - Continuing to build, complete and apply Health – Safety – Environment standards in PVEP; - Organizing periodical and sudden supervision and checking on the implementation of safety and environment protection at units/projects and contractors Minimizing accidents and incidents arising in operation process; strictly observing Vietnam’s and native country’s regulations on environment protection; - Correctly implementing checking and maintaining oil and gas projects to ensure the reliability of equipments and projects; - Selecting and using environmentally-friendly technologies and highly reliable and safe technologies; - Observing legal regulations of Vietnam and native country on Health-SafetyEnvironment; sufficiently implementing commitments in reports on environment impact/environment protection commitment of all projects; - Establishing a group of cadres and staff in charge of health-safety-environment with sufficient qualification, foreign language and competence meeting the requirement of task implementation; - Enhancing dissemination, education, knowledge impartation, training on safetyhealth-environment in order to enhance personal responsibility on each level of leaders, cadres and staffs in the Corporation in voluntarily implementing regulations on health-safety-environment regulation, introducing safety and environment protection into a cultural feature of PVEP; 79 - Observing and actively implementing legal regulations on work environment, industrial sanitary and providing labor protection equipments Periodically generalizing, analyzing, evaluating and deploying necessary measures to ensure and improve health conditions for laborers; proactively preventing, treating and handling the cases of occupational diseases; - Enhancing and deploying measures on ensuring security for cadres and staffs of PVEP working for foreign projects Regularly having evaluation on security situation in regions to have appropriate instructions; - Enhancing international cooperation to acquire knowledge, experience and new technology on health-safety-environment 3.4.6 Solutions on national security Strengthen coordination between PVEP with the Corporation, Ministries and local authorities to ensure security for the exploitation and exploration of oil and gas at sea, continue to actively participate in implementing the basic investigating tasks and national defense of Vietnam in South China Sea Coordinate closely with the Corporation, Ministries and Departments to build "oil diplomacy", enlist a good relationship with countries to ensure effective implementation of the oil and gas projects in Vietnam and enhance investment abroad Strengthen and implement measures to ensure safety/security for employees of PVEP working in oil and gas projects 80 Conclusion PVEP is the main unit of Petro Vietnam Corporation in the exploration and production of oil and gas, is the pioneer in the sector in investing abroad and has made major contributions to the Corporation and the State PVEP conducts exploration and production of oil and gas in all territory, continental shelf and exclusive economic zones in Vietnam and other countries/regions with potential of oil and gas in the world In the future, PVEP will continue to thrive both quality and activities/investments scale domestically and internationally as an international oil and gas company, aiming at efficient business and contributing to the development of the Corporation and in securing energy sources for the country Through the study of the actual operation situation of PVEP and evaluation of factors that can affect the development of the Corporation such as macro-economic environment, the sector environment We have applied the theory of strategies in the process of analysis, evaluation to build matrices and to have the best combination of opportunities, threats, strengths and weaknesses in order to determine a strategy that works best for PVEP With strategies that group has studied along with solutions to implementing strategies, we hope to make a contribution to PVEP in the reviewing, reevaluating existing strategies to ensure the efficiency and feasibility of the strategy 81 ... been accepted for the award of a degree or diploma in any tertiary institution Group - Class: GaMBA.X0110 LIST OF ABBREVIATIONS WTO: World Trade Organization OPEC: Organization of petroleum exporting... investment mainly from Europe and Asia in oil and gas exploration in Vietnam After USA lifted the embargo and normalized relationship with Vietnam, many American companies such as Mobil, Occidental,