After nearly 300 days of collaboration, the FPT-Petrosouth consortium and Vietsovpetro successfully presented the final report for the project “Comprehensive Strategic Consulting on Digital Transformation and Development of Vietsovpetro’s IT Master Plan.” A digital culture workshop was also held as they transition to the implementation phase, aligning with Vietsovpetro’s business and production needs. The report outlined plans to position Vietsovpetro as a leader in Southeast Asia’s oil and gas-energy sector through the full adoption of digital technologies.
The Vietsovpetro Joint Venture, a member unit of the Vietnam Oil and Gas Group (Petrovietnam), is a leading enterprise in the field of oil and gas exploration, geological surveying, and extraction in Vietnam. This gives it significant advantages as it enters the digital transformation phase. The roadmap and strategy for digital transformation through 2030 have already been clearly outlined by the Vietnam Oil and Gas Group.
The Fourth Industrial Revolution (Industry 4.0) presents many opportunities while also posing numerous challenges for every nation, organization, and individual, with increasingly profound impacts on all aspects of economic and social life. In Industry 4.0, digital transformation (DX) is an inevitable and objective trend that will take place comprehensively in all areas of life and on a global scale. Recognizing the benefits that digital transformation brings, Petrovietnam has identified DX as a top strategic priority for the entire Group to increase productivity, quality, efficiency, and competitiveness. Vietsovpetro is no exception to this inevitable transition. To clearly define the roadmap and plan for realizing the future of digital transformation, while optimizing effectiveness from the very first steps, Vietsovpetro engaged the services of strategic consulting on digital transformation and IT system development from the consortium of two leading Vietnamese contractors, FPT and Petrosouth, in 2023.
On April 25th, in Vung Tau, the project “Comprehensive Strategic Consulting on Digital Transformation and Development of Vietsovpetro’s IT Master Plan” was officially reported as completed. The event was attended by the full leadership teams of Vietsovpetro, FPT, and Petrosouth, along with management and project expert teams from all parties involved.
At the opening of the program, Mr. Tran Quoc Thang, Deputy General Director of Vietsovpetro, introduced the significance and objectives of the project report. He expressed confidence that the consulting project’s results would help effectively implement the comprehensive digital transformation program, bringing about significant progress and breakthroughs for Vietsovpetro in the near future.
The project report consists of nine key components, highlighting the development of a comprehensive architecture for digital transformation. It outlines a roadmap for implementing digital initiatives in each phase of the project from 2024 to 2030, with the goal of digitizing production activities and optimizing operational management by leveraging existing digital systems and infrastructure. The report also covers the development of IT systems, risk management measures during the implementation process, and the innovation of the business model through digital capabilities. Additionally, it addresses the creation of an ecosystem to support the goals of sustainable clean energy and service business development.
Specifically, alongside the core task of maintaining stable oil and gas production at an average of 2.8 million tons per year, Vietsovpetro aims to expand its business model. This includes increasing the contribution of sectors beyond oil and gas extraction, such as oil and gas services, offshore wind power investments, and offshore wind services. The goal is for these sectors to account for 15% of revenue by the end of 2025, 30% by the end of 2030, and 60% by the end of 2033.
These objectives will be realized through 23 comprehensive digital initiatives, spanning various business operations related to oil and gas exploration and extraction, such as geology, drilling, extraction, field development, design, construction, and maintenance. Additionally, they cover areas of operational management, information security, IT infrastructure, digital culture, and digital workforce development at Vietsovpetro. The implementation roadmap will follow three phases: resource consolidation, preparation for transformation in 2024-2025, and ultimately achieving full mastery of digital transformation by 2033.
In directing the next phase of implementation, Mr. Vu Mai Khanh, General Director of Vietsovpetro, emphasized the need to ensure feasible execution, risk management, and continuous evaluation and updates based on real-world conditions. To ensure the feasible implementation of digital initiatives, he instructed all units to adhere to the overall directives of the Digital Transformation Steering Committee and closely follow technical requirements for bidding and contractor selection. Given the highly systematic nature of digital transformation, it is crucial to identify and manage potential risks effectively. Furthermore, with technology advancing rapidly, it is essential to continuously assess, update, and adjust digital transformation strategies, Mr. Khanh concluded.
Regarding the factors for successful implementation, Mr. Tran Duc Trung representing the FPT and Petrosouth consortium, stated: “Our core focus in strategic investment projects will be on high-impact digital technologies with broad applicability across Vietsovpetro’s operations, such as artificial intelligence and machine learning in geology, drilling, and extraction technology. The investment projects approved through digital initiatives have undergone investment efficiency evaluations with clear roadmaps, starting with limited-scale pilots. After evaluating their effectiveness, we will expand implementation across the entire system. We also propose that the digital initiatives be designed for rapid deployment. The report also addresses long-term, foundational investments, such as in information security infrastructure and data platforms. These serve as the foundation for digital initiatives and future applications for Vietsovpetro.
Aiming for a successful transformation, the project report clearly outlined strategies for building change management frameworks and methods, emphasizing interaction and coordination among units, departments, and individuals at all levels. Regarding information security, the report proposed enhancing security protocols, using stronger security solutions to address emerging threats, and safeguarding Vietsovpetro’s operational and business data.
Mr. Trung also expressed hope and confidence that the results of this digital transformation consulting project would provide Vietsovpetro with a clear and coherent strategic roadmap, paving the way for its success in becoming a leading oil and energy company in Southeast Asia. This would also contribute to meeting Vietnam’s growing energy needs in production and consumption in a more efficient and sustainable manner.
At the meeting, Mr. Dang Dinh Cong, Director of Vietsovpetro’s IT & Communications Center and representative of the project coordination team, provided a summary of the evaluation of the project reports. He noted that all component reports of the project had been carefully reviewed through multiple stages of feedback, revisions, and approvals. Vietsovpetro’s departments contributed nearly 600 comments on various content items, all of which were thoroughly addressed and supplemented by the project experts. Over the course of nearly 300 days, under the close guidance of leadership and the tireless collaboration of all parties involved, the consulting project achieved today’s successful results.
Mr. Le Hung Cuong, Deputy General Director of FPT Digital, engaged in discussions with Vietsovpetro experts regarding the feasibility and relevance of applying the results of the consulting project. He stated, “The digital transformation roadmap must have a comprehensive architecture, in which Vietsovpetro’s digital architecture should be designed in alignment with and closely connected to its core business objectives. This architecture ensures that any technology investment decision directly contributes to business goals, optimizes operations, and supports Vietsovpetro’s sustainable development strategy. With the roadmap already established, Vietsovpetro will ensure the highest feasibility in its digital transformation journey, maximizing the chances of success in execution.”
The structured execution approach, combined with strong commitment from the leadership and the continuous efforts of all Vietsovpetro employees, is a crucial factor in ensuring the success of the digital transformation process. This will contribute significantly to positioning Vietsovpetro as one of the leading enterprises in the oil and gas-energy sector in Southeast Asia.
