From July 20 to 21, the company convened the production and operation analysis meeting for the first half of 2023 in the meeting room on the first floor of its base. A total of 41 participants attended the meeting, including company leaders, heads of administrative departments, and production units. At the meeting, each drilling team, fracturing, cementing, directional well project department, and international department reported on the completion of production and operation for the first half of the year. Meanwhile, administrative departments also presented their work accomplishments for the first half and outlined plans for the second half.
The meeting invited Sun Pihu, General Manager of Everbright Securities, to deliver a report on the initiation of the listing process for Zhengtong Oil & Gas.
At the meeting, Yu Ke, the company's Executive Deputy General Manager, read out the appointment and removal documents of cadres. He also summarized the work of the first half of the year and arranged the work plan for the second half.
Li Xi, Chairman of the company, delivered an important speech. He expressed his congratulations on the achievements made by various drilling project departments and drilling teams in the first half of the year, particularly highlighting the outstanding performance of shallow drilling teams. However, he noted that overall, the time had passed halfway through the year, but the target completion had not reached half, signaling challenging tasks ahead in the second half. Although the fracturing project department fell short of its target to some extent, the workload deployment for the second half was considerable. The fracturing project department should therefore remain confident and redouble its efforts. For the overseas project department, on top of accomplishing the set goals and tasks, it should intensify market expansion efforts and strive for success in multiple areas.
Li Xi emphasized to maintain steady growth and competitiveness amidst the global economic slowdown, and to achieve production value, profit, and listing goals, the company must grasp one key point and five essential factors.
A key point is to have confidence in the positioning of private oilfield services enterprises within the industry. The opinions issued by the CPC Central Committee and the State Council on promoting the growth of private enterprises point out that private enterprises are the main force driving China's modernization, an essential foundation for high-quality development, and a crucial force in promoting China's all-round socialist modernization and achieving the second centenary goal. We must adhere to the direction of socialist economic reform, strive to create a legal, market-oriented, and internationalized business environment, optimize the development environment for private enterprises, protect the property rights of private enterprises and the rights of entrepreneurs, enable equal access to production factors for all economic entities, ensure fair participation in market competition, and equal protection under the law. This will facilitate the growth, excellence, and strength of private enterprises, enabling them to shoulder greater missions and play a more significant role in the great rejuvenation of the Chinese nation. The meeting of the Central Committee for Deepening Reform emphasized that the basic goal of oil and gas system reform is to return to the commodity nature of oil and gas. Based on the operating characteristics of the oil and gas industry, the central government has established a basic reform approach of "controlling the middle and liberalizing both ends," which means controlling the pipeline transportation segment in the middle of the industrial chain while liberalizing the upstream exploration and development and downstream processing, sales, and service segments that are open to competition. This approach aims to unleash market vitality through fair competition. The 8th Plenary Session of the 10th Party Committee of the Autonomous Region highlighted the need to unleash the potential of advantageous energy sources, build high-quality "eight major industrial clusters" including oil and gas production and processing clusters, and promote comprehensive and deepening reforms. The region aims to create a market-oriented, law-based, and internationalized business environment, fostering the competitive development of various market entities. Policies related to oil and gas reforms reflect the importance attached by the state and the autonomous region to private enterprises. We must have sufficient confidence in the industry and enterprises.
The five essential factors are as follows: 1. Consolidate market position. In the second half of the year, we will concentrate our resources on high-value businesses, continue to seize existing markets, quickly occupy emerging markets, and develop high value-added technical service markets. It is necessary to strengthen market sensitivity and market expansion efforts, improve enthusiasm and initiative, implement market incentive policies, and ensure that all employees grasp the market. 2. Attract talents in an eclectic way. Continue to improve the performance appraisal mechanism, maintain the vitality of the talent pool, and attach importance to corporate training and employee empowerment. Strengthen school recruitment and social recruitment to maintain the vitality of the talent echelon. 3. Develop long-term plans and strengthen scientific and technological capabilities. It is necessary to formulate the five-year science and technology plan for the company, fully publicize and implement it, and gradually expand the company's technical research team. All employees must pay attention to technological innovation, actively apply for patent innovations, and increase exchanges with universities and research institutes. 4. Go out unswervingly. It is necessary to Intensify efforts to expand overseas markets, with a focus on Central Asia and Africa, quickly improve overseas project management and operational capabilities, and ensure the safe and stable operation of projects. 5. Pay attention to capital. Restart the company's listing counseling process from the second half of the year, striving to enter the capital market to benefit both employees and the company.
Li Xi emphasized that in the increasingly fierce market competition environment, only by seeking efficiency in management, pursuing innovation in technology, never stopping the pace of market development, and never relaxing efforts to ensure safety can enterprises maintain vitality and guarantee employee income. He hope that everyone will work together and contribute to the successful realization of the annual business goals!
