PetroVietnam reshuffles its deck

The national energy giant has an impressive investment portfolio encompassing a range of areas

Talking with VIR last week in Hanoi, Huyndai Engineering & Construction Company general director Park Ki Jeung refused to confirm the news.

However, Jeung said if the two sides successfully negotiated the deal, both parties would enjoy benefits.“It will take time because it needs lots of things to consider by both parties.”

Jeung said Huyndai’s affiliate, Huyndai Engineering Company, had cooperated with PVC to deploy engineering procurement construction (EPC) contracts for two large projects in Vietnam, the $232 million polypropylene plant in Dung Quat Industrial Zone in Quang Ngai province and the $324 million Dinh Vu polyester plant in Haiphong’s Dinh Vu Industrial Zone.

“We highly appreciate the capacity of PVC and we consider this company as one of the best construction contractors in Vietnam,” Jeung said.

Huyndai is one of the leading construction companies in Vietnam, operating engineering, building, civil works, petrochemical facilities and power plant construction.

Thang said PetroVietnam had targeted to reduce its stake in PVC from 41 to 30 per cent, part of a plan to restructure its affiliates and subsidiaries since the end of 2008, reflecting government requirements to concentrate on its core business.

“For affiliates like PVC, even that this company is still within PetroVietnam’s development strategy, the group is not necessary to hold the dominant stake, but it needs to hold 30 per cent to keep the veto,” Thang said.

Since 2008, PetroVietnam has reduced its capital in a range of affiliates such as the Petroleum Labour Union Company and the Petroleum Expressway Service Company, as well as disband the establishment of the Petro-Energy Fund which the group planned to set up with the state-owned Oman Petroleum Company.

Other pipeline affiliates in the list to reduce PetroVietnam’s capital are PetroVietnam Finance Company and PetroVietnam Insurance Company.