PTSC Leverages Oil and Gas Strengths to Develop Offshore Wind Power

The oil and gas industry in Vietnam has seen significant growth over the past four decades, with the development of technical services closely following this expansion.

PTSC signs a major contract to Ørsted Taiwan Ltd (Ørsted) for manufacture and supply foundations for the 920 MW Greater Changhua 2b and 4 offshore wind farms, May 2023, Taiwan

With over 30 years of growth and development, PetroVietnam Technical Services Corporation (PTSC), a key member of Vietnam National Oil and Gas Group (PetroVietnam), specializes in delivering technical services to the oil and gas, industrial, and energy sectors in Vietnam and across the region.

PTSC boasts a modern infrastructure and a highly professional workforce, with nearly 10,000 skilled employees dedicated to supporting the oil and gas industry. The company's infrastructure includes eight strategically located port bases across Vietnam, covering a total area of over 300 hectares and featuring nearly 3 kilometers of wharf space. The corporation also owns and manages a diverse fleet of 21 service vessels of different types and capacities, all operated by experienced and capable Vietnamese crew. In addition, PTSC owns and co-owns six Floating Production Storage and Offloading (FSO/FPSO) units, supporting operations in both domestic and international oil fields. The company is also fully equipped to provide a wide range of services, including the surveying, fabrication, and construction of oil and gas projects. Additionally, PTSC specializes in the transportation, installation, maintenance, repair, and decommissioning of offshore oil and gas infrastructure.

With its current capacity, PTSC offers services across all stages of an oil and gas project, from exploration through to decommissioning. This includes support for exploration activities such as surveying and drilling operations, as well as project development services like the fabrication, transportation, and installation of offshore structures, alongside drilling support. During the production phase, PTSC provides ongoing operation and maintenance services, along with the management of port bases and service fleets. Additionally, the company is equipped to handle the removal and decommissioning phase. PTSC is equipped with a team of experts and state-of-the-art facilities that meet the stringent technical requirements of the oil and gas industry. As the sole member of Vietnam National Oil and Gas Group (PetroVietnam) with the capacity and legal framework to operate in this sector, PTSC is also actively investing in, developing, and managing offshore wind power projects. The company is forging partnerships with renowned international investors and developers in the offshore renewable energy sector, while collaborating with leading financial institutions to explore opportunities for investment in offshore wind power projects in Vietnam. Through these efforts, PTSC is contributing to the country's transition to sustainable energy and the development of a greener future.

PTSC is contributing to the country's transition to sustainable energy and the development of a greener future

Gradually building a solid position in the offshore wind power industry

With outstanding capacity and experience strengths, PTSC is widely recognized by industry experts for its strong capabilities to invest in and develop offshore wind power projects. The company is also well-positioned to offer a comprehensive service chain for the offshore renewable energy sector. Trusted by international offshore wind power developers, PTSC has been selected to join the supply chains of international partners and will play a role in investing in offshore wind power projects in the coming time. In response to the growing trends of green development and the global shift toward sustainable energy, PTSC is redirecting its focus toward the rapid growth of offshore wind power. The company aims to position itself as both a leading project developer and a professional service provider, contributing to the expansion of a robust renewable energy industry, not only in Vietnam but also on the global stage.

Previously, PTSC took part in wind power projects in the Truong Sa Archipelago (2008-2010) and Phu Quy island district (2010-2013). But only in the last three years, the corporation has officially entered the offshore wind power sector. Initially, PTSC entered into bidding packages such as equipment transportation, wind turbine tower installation, subsea cable installation, and long-term supply of specialized vessels for nearshore wind power projects. At the same time, PTSC has also installed and operated FLIDAR equipment to survey and collect oceanographic and hydrographic data for the Thang Long offshore wind power project in Binh Thuan waters for Enterprize Energy Group. Following this success, PTSC has successfully secured an international contract for the design, procurement, and manufacture of two offshore substations (OSS) for the Hai Long 2 & 3 Offshore Wind Power Project in Taiwan (China). This is the next step to take advantage of PTSC's existing strengths of 30 years plus experience in providing technical services for the domestic and foreign oil and gas industry. However, the most important milestone marking PTSC's strong transformation in the offshore wind power industry is its signing of a contract to manufacture 33 wind turbine foundations for a 920-MW offshore wind farm project of Orsted in Taiwan (China). According to this contract, PTSC will manufacture and supply 33 fixed foundations for the Hai Long 2 & 3 Offshore Wind Power Project, each standing approximately 85 meters tall and weighing up to 2,300 tons. The total weight of the steel structures will reach nearly 100,000 tons. This represents a significantly larger volume compared to the oil and gas projects PTSC has previously executed. Notably, the foundations feature a standardized design, allowing for mass production, which contrasts sharply with the fabrication of large oil and gas platforms that are typically customized and produced individually. The nature of offshore wind power projects requires a higher production capacity and faster timelines, emphasizing a key difference from oil and gas platform construction, which often spans several years.

PTSC is also fully equipped to provide a wide range of services, including the surveying, fabrication, and construction of oil and gas projects

Currently, PTSC is still actively pursuing fabrication contracts of wind power foundations for projects in Taiwan (China), South Korea, Europe and other regions. PTSC aims to become an important link in the global offshore wind power supply chain. At the present stage, when the offshore wind power supply chain is not yet complete, the corporation defines that becoming a strategic link is a long-term goal, aiming to gradually build a solid position in the offshore wind power industry. It considers offshore wind power an important development opportunity and is ready to face challenges and make every effort to achieve this goal.

Perhaps, for offshore wind power, boosted by their rich experience in offshore oil and gas exploration and production, PetroVietnam’s members, including PTSC, have a lot of advantages in occupying and increasing value at each stage of supply/link of the value chain of marine works, suitable for many stages and work items. This becomes especially significant when manufacturing, transporting and installing components and equipment account for a large cost weight in this field. Nonetheless, a full assessment is needed to propose a supply chain and linkage between oil and gas service providers in offshore wind power to ensure the best utilization of existing strengths as well as to propose goals, solutions and plans to effectively implement specialized investment activities to occupy chain links with high added value, advanced technology, and higher production and management capacity in this new service field. PetroVietnam’s service sector needs to not only meet the highest demand for the domestic oil and gas market and industries, but also expand the provision of services for offshore wind power in Vietnam and abroad.

Based on PTSC's experience with offshore wind power projects for international clients, it has become clear that the global supply chain for this sector remains relatively fragile. In Vietnam, there are only a limited number of domestic companies capable of meeting the stringent demands in terms of progress, volume, and quality for such projects. As a result, it is crucial for local firms to be highly capable, experienced, and strategically oriented toward collaboration. Cooperation and mutual support among industry stakeholders will be essential to meet the rigorous requirements set by investors and developers of offshore wind farms.

Expanding peer-linked chains

By fostering and strengthening peer-linked supply chains, service companies in the offshore wind power industry can effectively mobilize resources, share expertise, and integrate assets, equipment, and machinery to meet the high demands of project volume and quality. This collaborative approach is allowing companies to demonstrate and expand their capabilities, establishing a strong reputation not only in Vietnam but also across the region and globally. However, some types of services are still overlapping because many member units of PetroVietnam supply alike. Their coordination, support and linkage for mutual development remain limited, giving rise to the failed utilization of PetroVietnam’s combined strength.

To address these weaknesses in peer coordination, it is necessary to promote cooperation, shape the scope of service chains for each company so as to optimize material resources and enhance investment performance in providing services for offshore oil, gas and wind power fields. On April 24, 2024, the Politburo issued Conclusion 76-KL/TW on assessment of the “implementation of Resolution 41-NQ/TW dated July 23, 2015 of the Politburo on strategic orientations for Vietnam’s oil and gas industry development to 2025, with a vision to 2035” and new orientations for the upcoming period. According to this conclusion, the oil and gas industry development must be closely linked to energy transition and green growth goals. Specifically, the Politburo requested the oil and gas industry to focus on pilot projects for offshore wind power production and export, along with green hydrogen, green ammonia and renewable energy production - making the most of sector-specific advantages. Additionally, the conclusion emphasized the construction of large-scale national energy centers and the integration of gas, LNG - electricity, petrochemical refining, wind power, solar power and other renewable energy sources towards international competitiveness. These energy centers will be developed in strategic localities such as Ba Ria-Vung Tau, Quang Ngai and Thanh Hoa provinces. One of the key objectives of this conclusion is to maximize the advantages of the oil and gas industry to play a leading role in developing renewable energies and new energies. PetroVietnam is committed to becoming a leading national industrial and energy group, continuously enhancing the efficiency of its traditional energy sectors while driving initiatives for sustainable development in Vietnam's energy landscape. The company is focused on balancing the growth of conventional energy sources with the promotion of renewable energy solutions, contributing to the nation's long-term energy security and the transition to a more sustainable and low-carbon future.

With clear strategic orientations and established strengths in the oil and gas industry, particularly their alignment with the offshore renewable energy sector, PetroVietnam and PTSC are confident in their ability to play an important role in the development of Vietnam’s offshore renewable energy industry. Leveraging their expertise and resources, they are poised to make a significant contribution to the country’s transition to sustainable energy, driving growth and innovation in the sector in the near term.

By Van Luong. Vietnam Business Forum