Nghe An Petroleum Company: 65 years of construction and development

Through ups and downs, Nghe An Petroleum Company has gradually grown, actively contributing to the cause of national liberation, building and defending the Fatherland.

After the liberation of the North, the Vinh Petroleum and Grease Company and General Warehouse was established with the task of receiving, storing, and transporting petroleum for the area from Nghe An to Vinh Linh.

Right from the first bombing raid on the North on August 5, 1964, the US directly attacked Ben Thuy Petroleum Depot. This was one of the 6 largest petroleum depots in the North. Many of the company's outstanding sons heroically fell or lost a part of their body while participating in the fight to protect and extinguish the fire to save goods. In 1973, along with the renaming of the corporation, Nghe An Petroleum Department changed its name to Nghe Tinh Petroleum Company.

In 1991, Nghe Tinh Petroleum Enterprise changed its name back to Nghe Tinh Petroleum Company. In 1995, the Ministry of Trade issued a decision to merge the Central Petroleum Company and the Vietnam National Petroleum Corporation, and merged Nghe Tinh Petroleum Branch into Nghe Tinh Petroleum Company. In July 2010, Nghe Tinh Petroleum Company split into Nghe An Petroleum Company and Ha Tinh Petroleum Company under the Vietnam National Petroleum Group.

During the integration period, the Company has consolidated and reorganized its apparatus in a streamlined and specialized direction. With more than 600 employees, receiving basic training, of which more than 300 employees have college and university degrees.

Ben Thuy oil depot. Photo: Van Truong

During 65 years of construction and development, to be successful as today, the Company has been proactive, creative, promoting to find partners, gradually expanding the distribution network and business methods.

On every street, you can see the Petrolimex logo, symbolized by a drop of gasoline rolled into the shape of the letter "P". With the determination of direct retail method through the system of affiliated gas stations, it is considered the main method.

The Company has prioritized resources to focus on new investments, upgrading, expanding, and modernizing the gas station system. On average, the Company develops 2-3 gas stations each year. Up to now, the Company has a modern retail network of 78 stores with 80 points of sale, spread across the districts of Nghe An province, with an annual growth rate of 8-9%, accounting for approximately 50% of the gas station market share in the area.

In addition to developing the retail network, to ensure the supply of petroleum products, the Company upgraded the storage capacity of the petroleum warehouse in 2001 to 22,800 m³, 2009 reached 46,800 m³. By 2014, the Company once again completed upgrading 2 Nghi Huong and Ben Thuy petroleum depots, increasing the total capacity of the 2 depots to 56,800 m3; implementing the State's policy on improving the environment. In 2018, the Company invested in 2 more Ethanol tanks (E100) to blend E5 gasoline at Ben Thuy depot, proactively supplying biofuel to the market; the interconnected port warehouse system is connected by pipelines from the seaport to the river wharf, capable of receiving ships from 1,500 m³up to 18,000 m³import goods. Perform well the task of trading and storing national petroleum in the North Central region and part of Laos.

Over the years,Nghe An Petroleum CompanyFocus on investing in the application of advanced science and technology in production, business and corporate governance. Currently, there is a system of more than 350 computers for all stores and affiliated units and connected to the server system at the Company's office. The Company focuses on developing human resources with increasingly high quality.

The Company's clean and spacious retail stores follow Petrolimex Vietnam's brand identity standards. Photo: Van Truong

Thanks to the right policies and decisions, good management, the Company's business results have continuously and sustainably grown. The 2005 petroleum output, including Nghe An and Ha Tinh, reached 230,000 m³, 2010 reached 280,000 m³In 2016, Nghe An alone reached 352,000 m³and by 2021 it is estimated to reach 327,000 m³and always maintain the leading position in market share. Annual profits always reach and exceed the set plan.

In particular, the Company always preserves and develops the enterprise's capital, including State capital; gradually increases the income for employees, which is always guaranteed every year. The contribution to the state budget in 2005 was 84 billion VND, in 2010 was 330 billion VND, in 2016 was 825 billion VND, in 2020 was 908 billion VND and in 2021 is estimated to reach 940 billion VND.

Along with petroleum business activities, the Company has proactively developed business of non-petroleum products, goods and services such as: lubricants, liquefied gas, Pjico insurance, Petrolimex paint, JANA laundry detergent.

Revenue from non-petroleum business activities in the past 5 years has reached nearly 700 billion VND, growing over 10%/year. Diversifying business types gives the Company's employees dynamism, agility and adaptability to competition in the market mechanism. The Company also actively participates in social security work, participating in supporting and caring for Vietnamese heroic mothers.

Launching cashless payment service at petrol stations of Nghe An Petroleum Company. Photo: Mai Hoa

To successfully complete the tasks in the coming time, the Company's Board of Directors will carry out the following goals:

Firstly, focusing on human resources is an important factor that determines the success of the Company in the past 65 years and in the future. Regularly pay attention to training, fostering, improving management and executive skills, professional expertise, professional skills, and working attitude for employees. Implement well the code of conduct and corporate culture. Ensure jobs and income for employees.

Second, continue to promote the implementation of the strategy of investing in civilized and modern technical facilities, in which priority is given to developing the retail system to improve service quality and business efficiency.

Third, provide the market with quality products and services at competitive prices; complete and expand the distribution system, maximally satisfy the needs of society; promote communication policies and develop the Petrolimex brand to enhance the Company's position in the market.

Fourth, control risks well, innovate, continue to digitally transform management processes, apply SAP-ERP enterprise resource planning software system, gas station management software, and purchase goods without using cash at retail gas stations to adapt to the current 4.0 era.

Cashless purchases at retail gas stations adapt to the current 4.0 era. Photo: PV

Fifth, proactively develop and organize the implementation of tasks and plans assigned by the group and superiors. Ensure financial and business safety, fire and explosion safety, environmental protection, occupational safety and hygiene, and fulfill social responsibilities as well as commitments to customers.

During the 65 years of construction and development, the collective of officers and employees of Nghe An Petroleum Company has been honored by the Party and State with the title of Hero of the People's Armed Forces in 1995, Hero of Labor in the renovation period in 2005, Third-class Independence Medal in 2001, Second-class Independence Medal in 2011, First-class Labor Medal (2nd time) in 2016 and many other noble titles and awards for collectives and individuals of the Company through many generations.

The Company's headquarters is at 4 Nguyen Sy Sach Street, Hung Binh Ward, Vinh City, Nghe An Province. Photo: Van Truong

THANK YOU LETTER

On the occasion of Nghe An Petroleum Company (Petrolimex Nghe An) celebrating its 65th anniversary (December 29, 1956 - December 29, 2021), on behalf of the Party Committee and the Board of Directors of the Company, I would like to express my deep gratitude to generations of officers, employees and workers through the periods for their contributions and dedication of effort and intelligence to the development of the Company over the past many years.
We would like to express our sincere gratitude for the leadership, facilitation, and great support of the Ministry of Industry and Trade, the State Capital Management Committee at Enterprises, the Provincial Party Committee - People's Council - People's Committee, the Vietnam Fatherland Front Committee of Nghe An Province, the Party Committee of Nghe An Enterprises, the Vietnam National Petroleum Group, departments, branches, and other units inside and outside the industry, and especially customers across the country.
In the coming time, the Board of Directors - Employees of Nghe An Petroleum Company hope to continue to receive the attention, help and guidance of leaders at all levels, the support and companionship of partners and customers, and the efforts of employees so that the Company can grow stronger and stronger.
Best wishes for health, happiness and success!