PV OIL Brand Expanded at Home and Abroad

Contributing to the fulfilment of PetroVietnam 2006-2010 plan two years ahead of the time, PV Oil - a member company has expanded its brand at home and abroad. On the occasion of the New Year, Vietnam Business Forum had an interview with Mr Nguyen Quoc Khanh, Director General of PV Oil.

Will you please tell us the development and achievement of PV Oil in 2008?
As the development of oil and gas industry requires strong trade and service sectors and WTO membership demands higher competitiveness, on June 6, 2008, the Management Board of PetroVietnam decided to establish PetroVietnam Oil Corporation (PV Oil) by merging Petechim (trade) and PDC (processing) down-stream companies to make PV Oil equivalent in size to other companies in the region. Main business activities of PV Oil are import-export of crude oil, equipment and related products, processing, transport, distribution and services.

2008 is the pivotal year of the 2006-2010 State plan and the final year in preparation for the operation of Dung Quat oil refinery. Therefore, the task of PV Oil is to accelerate business activities and at the same time increase the capacity of storage and distribution to meet ever higher demand of the national economy. In 2008, PV Oil is expected to export over 15 million tonnes of crude oil and import nearly 3 million tonnes of petroleum together with equipment and fertilizer.  The turnover is expected at VND38,000 billion and State revenue at VND3,000 billion.

Additionally, PV Oil has invested in related projects. Nearly VND700 billion have been invested in 40 projects including underground storage in Long Son (1.2 million cubic metres),  Tao island storage (150,000 cubic metres). Some projects have started operating such as Chan May storage (Thua Thien Hue), Can Tho storage, etc. In particular, on November 30, 2008, PV Oil operated successfully the supply of 800,000MT of crude oil for a test-run of Dung Quat refinery at SPM wharf. It marked a new development of PetroVietnam in down-stream industry, completing the whole production chain of exploration, exploitation, transportation, processing, storage and distribution, contributing to the industrialization and modernization and energy security of Vietnam.

What are the motivation and comparative edge of VP Oil in the industry?
PV Oil has emerged as a leading down-stream company of PetroVietnam. It has combined closely its development strategy with that of PetroVietnam focusing on spearheaded sectors and comparative advantages. In addition, the whole staff are united and devoted in their performance.

As a member company of PetroVietnam with huge resources of capital and technology, modern organization and management, exporting and supplying total output of crude oil, VP Oil has increasingly developed business activities at home and abroad. The corporation has stable sources of petroleum from condensate refinery of PetroVietnam, network 30 member companies, branches and representative offices in foreign countries. It has also a distribution network nationwide with storages and gas stations and will be expanded to neighbouring countries.

PV Oil has also promoted international cooperation, participating in local and foreign investment projects and making the best use of the local resources. Currently it is expanding cooperation with Venezuela, Russia, Malaysia and others.

Could you introduce some of your projects?
In 2008-2010, VP Oil will expand activities to create opportunities for sustainable development. For the same purpose, it is developing network of storages to meet higher demand of distribution and reserve for export and energy security. The following are some of the projects:
Tao island (Vung Tau) storage of 150,000 cubic metres built in 2007-2008;
Long Son underground storage of 1.2 million cubic metres, the first of its kind in Vietnam to be built in 2008-2010.
Condensate refinery in Cai Mep industrial zone (Ba Ria - Vung Tau) of high quality petroleum to be built in 2008-2010.
Soai Rap storage of 160,000 cubic metres to be built in 2008-2010.
Bio-ethanol project with two factories in Phu Tho and Binh Phuoc provinces of 100,000 cubic metres/year to be built in 2008-2010

As a veteran in oil industry, how do you see the prospect in Vietnam and shortfalls to be overcome?
For 33 years of development, the Vietnam oil industry has become a leading sector of the economy. In the past decades, it helped Vietnam get out of socio-economic crisis. In this decade, PetroVietnam is the driving force of the industrialization and modernization. In recent years, it is seeking investment projects in foreign countries.
So far PetroVietnam has exploited over 280 million tonnes of crude oil and condensate of over 45 billion cubic metres with income of over US$60 billion, State revenue of over US$36 billion and capital ownership of over VND100,000 billion. It is developing 13 investment projects in foreign countries with 8 projects by its own management with important exploration in Malaysia and Algeria. In September 2006, it has exploited the first tonne of crude oil in well PM-304 - Malaysia.

Reported by Anh Dao