Foreign firms bite into PetroVietnam

PetroVietnam illustration photo

Under the agreements, which were signed at an ongoing conference on trade promotion in RoK, Hanshin Group will purchase a 10 per cent stake in the PetroVietnam Construction Joint Stock Corporation and the Shinhan Investment Group will buy a 15 per cent stake in PetroVietnam Securities Incorporation.

PetroVietnam Deputy Director General Nguyen Tien Dung said that this was part of the group's five year plan, during which time it would focus on four key areas: oil exploration and exploitation both at home and abroad, petrochemistry, thermo-electricity and other clean energies, and technical services in the oil industry.

The group would retain its 100 per cent stake in PetroVietnam Exploration Production Corporation to ensure the target was met, he said.

In addition, PetroVietnam Insurance's strategic shareholder, the Oman Investment Fund, has decided to raise its holdings in the Vietnamese partner.

Vice chairman of the PetroVietnam board Hoang Xuan Hung said that the two sides had reached an agreement to enhance co-operation, particularly in oil and gas.

The Oman Oil Company has also agreed to invest in the Ca Mau Fertiliser Plant project, which is expected to go into operation in 2012.

The two sides will sign the detailed contract in Q3.

PetroVietnam estimates its first half total revenue will reach VND340 trillion ($16.5 billion), up 45 per cent year-on-year and 68 per cent of the group's target for the year.

Oil sales are projected to earn $5.8 billion, up 34 per cent from the same period in 2010, and equivalent to 69 per cent of its annual goal.

In the first half of this year, PetroVietnam disbursed a total investment worth more than VND46 trillion ($2.23 billion), equivalent to 37 per cent of the total it projected for the whole year.