PV Drilling - Pioneer in Vietnam Oil & Gas Industry

Set up quite late in comparison with other PetroVietnam’s member companies, PV Drilling has now become one of the best-performing units of PetroVietnam and asserts its role as a pioneer of Vietnam drillers. This success comes from PV Drilling’s robust investment for and construction of state-of-the-art drilling platforms, advanced specialised equipment and highly skilled Vietnamese workforce – the core elements for the long-term development of PV Drilling.

 

Only after five years with the oil and gas drilling market, PV Drilling currently possesses and operates five drilling rigs, including three offshore drilling rigs, one onshore rig and one semi-submersible tender assist drilling rig (TAD), to occupy nearly 50 percent of the Vietnamese drilling market share. Specially, being built using latest and modern technology, TAD rig - the first of its kind to operate in deep water offshore Vietnam – will help increase the intrinsic value and improve competitive position of PV Drilling on the domestic and regional drilling market. In recent years, PV Drilling has achieved high business performance, usually in the region of 98 percent, and the corporation is striving to keep this rate. Currently, the corporation’s oilrigs generate daily revenues ranging from US$115,000 to US$120,000 (both short-term and long-term contracts). Besides, PV Drilling puts a premium on developing drilling and related services in order to diversify markets and increase market share.

 

In March 2011, PV Drilling signed contracts to build Scorpion Offshore "Resolute" oilrig for BHP Billiton (Australia) and supply “Aquamarine Driller” oilrig to Salamander Energy (Vietnam). Previously, in July 2010, PV Drilling signed a charter contract on provision of the jack-up rig PV Drilling I for Hoang Long Joint Operating Company (Hoang Long JOC). In September 2010, the corporation signed a US$3 million contract on supplying multifunctional jack-up rig PV Drilling II to Petronas Carigali Vietnam Limited Co. (Malaysia). In addition, many world-leading oil and gas groups are PV Drilling’s customers, including Cuu Long - Conoco Philips, Hoan Vu Joint Operating Company, Vietsovpetro, BP, Conoco, JVPC-Nippon Oil, PVEP, OMV, Petronas, Chevron, Premier Oil, KNOC, Vietgazprom, Thang Long JOC, Lam Son JOC and Truong Son JOC. The provision of services for leading domestic and international oil and gas companies reaffirms PV Drilling’s robust development step in expanding the domestic and international drilling market share, thus contributing to the heightening of the prestige and position of the Vietnamese oil and gas industry on the international arena.

 

Another proud achievement of PV Drilling is its success to expanding the force of Vietnamese people in drilling-related activities. A few years ago, nearly all key positions were undertaken by foreigners but by the end of 2010 only 77 employees were foreigners, accounting for just 5 percent of total 1,620 employees.

The corporation’s shares (ticker symbol: PVD) are always a hot pick of investors on the Ho Chi Minh City Stock Exchange (HOSE) because of optimistic business results since it was floated in 2006. This is a reason for the heavier weight of PV Drilling shares on the overall performance of the Vietnamese stock market.

 

With its vision of becoming a leading provider of drilling and well services in Southeast Asia as well as in Asia in a larger scale, PV Drilling will still continue its business development strategies outlined by its forerunners. The corporation will focus on developing and expanding services and improving the quality of drilling services as well as other high-end technical services to edge up its competitiveness to occupy 60-70 percent of the drilling market by 2015 to strengthen its foothold in the home market before expanding to the world. To start up this medium and long-term strategy, in the fourth quarter of 2011, PV Drilling will add another TAD rig to its fleet and consider investments for more oil platforms to increase its drilling market share. With the operation of new TAD rig, PV Drilling’s profit is expected to surge in 2012.

 

Mr Pham Tien Dung, General Director of PV Drilling, said: According to large shareholders, PV Drilling’s shares become a blue-chip on the local stock market because the corporation always concentrates on its core businesses like drilling and drilling-related services. Therefore, PV Drilling pinpoints drilling and drilling-related services in its development strategy until 2015 to increase the market share and profits, thus raising benefits of shareholders and employees.

 

He added, in addition to core businesses, PV Drilling will continue cooperating with other companies worldwide to develop high-tech services and invest in infrastructure and rigs to operate in Vietnam and the rest of the world. It also attaches importance to creating value for customers with high quality service and competitive prices and heightening the name of PVD on the oil and gas drilling market and the stock market of Vietnam.

 

Concerning the 44^th Annual Asian Development Bank Meeting (ADB) to be held in Vietnam, Mr Dung said: “PV Drilling is on the right path of its medium and long-term strategy. Overcoming difficulties and challenges caused economic crisis, the corporation boosted investments in four modern drilling rigs and other high-tech specialised machinery and equipment. Besides, PV Drilling is staffed by a contingent of knowledgeable, experienced and dedicated employees. I think that when investors pick up PVD shares, they invest in a powerful, robust-developing country with a solid long-term development prospect. PV Drilling's management board always believes and tries its best to continue attaining new achievements in production and business activities, thus raising the market price of PVD shares on the stock market.”