PetroVietnam to begin large-scale divestment

PetroVietnam to begin large-scale divestment

Vietnam National Oil and Gas Group (PetroVietnam) will complete the
divestment from several subsidiaries by 2020, according to newswire
Petrotimes.

Accordingly, PetroVietnam is permitted to retain its entire holdings in only
three subsidiaries, namely the parent company PetroVietnam, National
Southern Spill Response Centre (Nasos), and PetroVietnam Manpower Training
College. PetroVietnam will have to divest part of or entire holdings in its
remaining subsidiaries.

Notably, from now to 2019, PetroVietnam will entirely divest PVI Holdings,
Phuoc An Port Investment and Exploitation Oil and Gas JSC, Green Indochina
Development JSC, SSG Real Estate JSC, PetroVietnam Trade Union Finance JSC,
PetroVietnam Construction Joint Stock Corporation, and PetroVietnam
Maintenance and Repair JSC.

PetroVietnam will decrease its holdings below 50 per cent in PetroVietnam
Gas Corporation, PetroVietnam Transportation Corporation, Binh Son Refinery
and Petrochemical Co., Ltd., and PV Power.

According to the newest information, wholly-owned PV Power has released
plans to complete its equitisation in December this year.

Meanwhile, after having missed the deadline numerous times, PetroVietnam Oil
Corporation, another PetroVietnam subsidiary, has yet to release the
specific time for its initial public offering (IPO).

According to the initial plan, PV Oil was to conduct its IPO by the end of
June, selling a 49 per cent stake to strategic shareholders, employees, and
other investors. At the time the plans were announced, there were 10
strategic investors, including major oil companies from Japan, South Korea,
Thailand, Vietnam, and the Middle East, which have expressed interest in
acquiring PV Oil stakes.

The Vietnamese government has asked PetroVietnam to resume the operation of
its three projects that incurred heavy losses. These include Dung Quat
bio-ethanol fuel plant, Binh Phuoc ethanol plant, and Dinh Vu polyester
fibre and yarn factory (PVTex).

According to PetroVietnam's business report, the group reported a revenue of
VND247 trillion ($10.8 billion) in the first six months of 2017, up VND31.5
trillion ($1.3 billion) compared to the same period last year, including
after-tax profit of VND13.1 trillion ($572.8 million), up VND2.6 trillion
($113.6 million).

PetroVietnam has contributed VND44.2 trillion ($1.9 billion) to the national
budget, accounting for 59 per cent of the 2017 plan.

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Link to Original Article:
http://www.vir.com.vn/petrovietnam-to-begin-large-scale-divestment.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com