PVN urgently implemented solutions to cope with the double impact: Covid-19 pandemic and oil price decrease

On March 11^th 2020, PetroVietnam implemented Directive No. 1151 / CT-DKVN on the implementation of urgent tasks and solutions to cope with the dual effects of Covid 19 epidemic and oil prices fall.

Facing the complicated situation of Covid -19 outbreak and the oil market, PVN issued a Directive to require the Group and its affiliates to actively capture and update market information on market supply and demand, price fluctuations of crude oil and petroleum products, from which specific plans and operating scenarios will be developed.

For the sharp and deep decline in oil prices from March 9, 2020, it is necessary to prepare the plan for short-term shocks and for low-price situations lasting at 30, 35, 40, 45, 50 USD/barrel, including scenarios for the worst case to manage production and business activities flexibly and effectively. Besides, urgently report to the Group the financial ratios corresponding to the above oil price, the unit's detailed response solution and recommendations to the Group before March 13^th 2020.

Companies are required to directing production and business, cutting meetings, exchanging and strengthening optimal cost management, deploying the application of tools and solutions to reduce costs, save time and improve labor productivity. In particular, it is necessary to take appropriate and strict measures to ensure safety and avoid the impact of epidemic transmission to the areas of exploitation activities as well as factories with the aim of having continuous output and high efficiency.

Actively coordinate with other 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.

Also at the Directive, PVN said that the Group has been building, updating and deploying the overall solution package to cope with the dual effects of Covid-19 diseases and the fall in oil prices. At the same time, in order to effectively implement this task, PVN requires the units implementing process to regularly update and report on the situation, difficulties and obstacles for the Group to support and promptly handle.