Merger for Development

PetroVietnam Exploration and Production Corporation was set up from the restructure of two PetroVietnam units, namely PetroVietnam Investment and Development Company (PIDC) and PetroVietnam Exploration and Production Company (PVEP), in order to bring into full play the two unit’s strengths in capital, assets, technologies and especially human resources. The aim is to build and develop PetroVietnam Exploration and Production Corporation into a leading company in the field in both domestic and foreign markets, and into an influential oil and gas contractor in the region and in the world.

 

According to the establishment decision and the charter, PetroVietnam Exploration and Production Corporation will operate as a holding-subsidiary company, with the holding company (PetroVietnam Exploration and Production Corporation) a State-owned one-member limited liability company with 100 per cent of chartered capital kept by Vietnam National Oil and Gas Group.

 

Main business activities of the corporation include surveying and exploring contract blocks, and developing and exploiting oil and gas blocks in Vietnam and other countries. Besides, PetroVietnam Exploration and Production Corporation is entitled to take part in various fields related to the above activities. The corporation’s business target is to preserve and develop equity and maximise profits.

 

Under the establishment decision, the corporation’s chartered capital is VND10,000 billion (US$625 million). Chartered capital will be increased from after-tax profit, from supplementation by the owner (Vietnam National Oil and Gas Group), and from outside investment sources or loans.

 

Oil and gas exploration and exploitation projects, both at home and in foreign countries, typically need huge investment capital. Thus, mobilisation of capital from both domestic and foreign investors, and even from bank loans, has been taken into account.

 

In recent years, domestic oil and gas output has risen steadily. Since the commercial production of Dai Hung (in 1994), PM-3 (in 1997), Ruby and Rang Dong (in 1998), Lan Tay (in 2002), Su Tu Den (in 2003) and Rong Doi (in 2006), Vietnam has shared capital with foreign investors to operate 30 oil and gas contracts, and it has three self-invested projects. In other countries, we have signed and carried out eight oil and gas exploration and exploitation projects, in Mongolia, Algeria, Malaysia, Indonesia, Iraq and Venezuela. At the same time, we are seeking to invest in many other countries like Kazakhstan, Iran, Cuba and Nigeria. At present, PetroVietnam Exploration and Production Corporation contributes 18 per cent of oil and 16 per cent of gas to the country’s total output.

 

With its oil and gas development strategy for the coming time, PetroVietnam Exploration and Production Corporation aims to make up 45-50 per cent of oil and 25-30 per cent of gas in national output by 2015. To realise the goal, the corporation will expand its operational area to Africa, South America and Central Asia, increase investment capital in optimistic exploration projects, buy operational oilfields, enhance human resources, improve project operation efficiency, and promote cooperation with domestic and foreign strategic partners.