LPG trader Shinpetrol (VSP) will start operating a small oil refinery with an initial capacity of 2,000 barrels per day in southern Vietnam next month, state media reported on Thursday.
The refinery in the Mekong Delta city of Can Tho was expected to have an internal rate of return of 23.46 percent, the Dau Tu Chung Khoan (Stock Investment) magazine quoted Chief Executive Nguyen Duy Hung as saying.
The plant, which has a small terminal for 1,000-DWT vessels, will produce oil products including fuel oil, diesel, LPG and gasoline, Hung said.
He also said the firm planned to upgrade the terminal to receive bigger tankers of about 10,000 DWT.
Shinpetrol, a subsidiary of Vietnam's largest state-owned shipbuilder Vinashin, has set a target to achieve revenue of 752 billion dong ($47 million) this year.
Vietnam is Southeast Asia's third-largest crude oil producer but still relies on oil product imports as it lacks major oil refineries.
Its first large-scale oil refinery, Dung Quat, will have a capacity of 130,000 barrels per day when it begins operations by February 2009.
Source: Reuters
Showing posts with label Oil. Show all posts
Showing posts with label Oil. Show all posts
Thursday, August 30, 2007
Wednesday, August 29, 2007
SSC to have information about ATIP shares checked
The State Securities Commission (SSC) has promised to have the information about ATIP (ATI Petroleum) shares clarified after the government on August 8, 2007 requested that the Ministry of Finance and SSC provide faithful information about ATIP to investors.
According to SSC, ATIP is a foreign enterprise, established and now operating in Nevada state in the US. On July 4, 2001, ATIP got an investment licence from the Ministry of Planning and Investment for a joint venture project with PetroVietnam under the mode of PSC (production sharing contract) on exploring, developing and producing oil and gas at block No 102 and 106 on Vietnam’s continental shelf. Later, ATIP sold a part of the joint venture to Malaysia’s Petronas, and now ATIP holds 10% of total shares in the joint venture.
On January 26, 2007, Chairman of ATIP signed Decision No 01/QD on internal share issuance to 93 staffs. After buying ATIP shares, the staffs sold the shares to outside investors, and the shares have been available on the market.
SSC has checked information about the shareholders and found out that as of March 12, 2007, the number of investors who held ATIP shares was 251.
Recently, mass media have reported that ATIP shares are being listed on NYSE – Euronext, and that ATIP promised to give 10,000 ATIP shares as bonus to the national soccer squad.
The Securities Law, Enterprise Law and current guiding documents do not mention the fact that 100% foreign owned companies, established and operating in other countries, can offer shares for sale in Vietnam. However, in fact, ATIP shares have been transferred to 250 investors in Vietnam.
In order to protect the benefit of Vietnamese investors and avoid possible risks, SSC has two times asked ATIP to expose information about capital and financial situation, business performance and operation regulations of ATIP, as well as the transactions on NYSE – Euronext.
However, ATIP had not provided necessary information by August 10, 2007, except Dispatch No 10 to SSC dated August 10, 2007, saying that the company was preparing necessary documents. As the chairman of ATIP was away on business and would return in mid August, the company promised to gather all necessary documents and give explanations to the questions put by SSC at that time.
On August 17, 2007, ATIP sent a document to SSC, providing some details about the interested issues relating to the listing of ATIP on NYSE – Euronext. SSC thinks that it still needs to check the information before making it public; therefore, it plans to have a working session with ATIP to discuss related issues
Prior to that, SSC took an inspection tour of ATIP. The company organised workshops introducing its operation activities.
Source: VNE
According to SSC, ATIP is a foreign enterprise, established and now operating in Nevada state in the US. On July 4, 2001, ATIP got an investment licence from the Ministry of Planning and Investment for a joint venture project with PetroVietnam under the mode of PSC (production sharing contract) on exploring, developing and producing oil and gas at block No 102 and 106 on Vietnam’s continental shelf. Later, ATIP sold a part of the joint venture to Malaysia’s Petronas, and now ATIP holds 10% of total shares in the joint venture.
On January 26, 2007, Chairman of ATIP signed Decision No 01/QD on internal share issuance to 93 staffs. After buying ATIP shares, the staffs sold the shares to outside investors, and the shares have been available on the market.
SSC has checked information about the shareholders and found out that as of March 12, 2007, the number of investors who held ATIP shares was 251.
Recently, mass media have reported that ATIP shares are being listed on NYSE – Euronext, and that ATIP promised to give 10,000 ATIP shares as bonus to the national soccer squad.
The Securities Law, Enterprise Law and current guiding documents do not mention the fact that 100% foreign owned companies, established and operating in other countries, can offer shares for sale in Vietnam. However, in fact, ATIP shares have been transferred to 250 investors in Vietnam.
In order to protect the benefit of Vietnamese investors and avoid possible risks, SSC has two times asked ATIP to expose information about capital and financial situation, business performance and operation regulations of ATIP, as well as the transactions on NYSE – Euronext.
However, ATIP had not provided necessary information by August 10, 2007, except Dispatch No 10 to SSC dated August 10, 2007, saying that the company was preparing necessary documents. As the chairman of ATIP was away on business and would return in mid August, the company promised to gather all necessary documents and give explanations to the questions put by SSC at that time.
On August 17, 2007, ATIP sent a document to SSC, providing some details about the interested issues relating to the listing of ATIP on NYSE – Euronext. SSC thinks that it still needs to check the information before making it public; therefore, it plans to have a working session with ATIP to discuss related issues
Prior to that, SSC took an inspection tour of ATIP. The company organised workshops introducing its operation activities.
Source: VNE
Monday, August 13, 2007
Vietnam to cut petrol prices by 4 pct to curb inflation
The Vietnamese government has agreed to a plan to reduce gasoline prices by about 4 percent as it seeks to contain high inflation.
Consumer prices in July rose by 8.39 percent from a year earlier due to higher import costs, rising food prices and higher foreign investment. The government says inflation was still under control but tight measures should be taken to curb price hikes.
Prime Minister Nguyen Tan Dung approved a proposal by the Finance Ministry at a cabinet meeting on Sunday to cut retail gasoline prices, a government report said. It gave no timing for the reduction, but the move is expected soon. Prices of other fuel, including coal, and oil products such as diesel and fuel oil will stay unchanged, the report said.
Finance Ministry officials have said retail gasoline prices would be cut by about 500 dong (3 U.S. cents) per litre. The most popular 92-octane petrol grade would be priced at about 11,300 dong (70 U.S. cents) per litre, down from 11,800 dong now.
Despite having allowed distributors to set their own selling prices earlier this year, Hanoi still maintains tight control over fuel prices as it requires sellers to seek government approval before making any changes.
Prime Minister Dung also ordered government offices to lay out effective measures to achieve an economic growth of 8.5 percent for the whole of 2007 and keep inflation below the economic growth rate, the report said.
Last week Hanoi slashed import tariffs on a host of products including cars, steel and several food items such as beef and diary products as it moved to battle rising consumer prices.
Vietnam ranks as Southeast Asia's third largest crude producer after Indonesia and Malaysia but is forced to import most of its oil product needs as it lacks major refineries.
Source: Reuters
Consumer prices in July rose by 8.39 percent from a year earlier due to higher import costs, rising food prices and higher foreign investment. The government says inflation was still under control but tight measures should be taken to curb price hikes.
Prime Minister Nguyen Tan Dung approved a proposal by the Finance Ministry at a cabinet meeting on Sunday to cut retail gasoline prices, a government report said. It gave no timing for the reduction, but the move is expected soon. Prices of other fuel, including coal, and oil products such as diesel and fuel oil will stay unchanged, the report said.
Finance Ministry officials have said retail gasoline prices would be cut by about 500 dong (3 U.S. cents) per litre. The most popular 92-octane petrol grade would be priced at about 11,300 dong (70 U.S. cents) per litre, down from 11,800 dong now.
Despite having allowed distributors to set their own selling prices earlier this year, Hanoi still maintains tight control over fuel prices as it requires sellers to seek government approval before making any changes.
Prime Minister Dung also ordered government offices to lay out effective measures to achieve an economic growth of 8.5 percent for the whole of 2007 and keep inflation below the economic growth rate, the report said.
Last week Hanoi slashed import tariffs on a host of products including cars, steel and several food items such as beef and diary products as it moved to battle rising consumer prices.
Vietnam ranks as Southeast Asia's third largest crude producer after Indonesia and Malaysia but is forced to import most of its oil product needs as it lacks major refineries.
Source: Reuters
Thursday, July 26, 2007
Vietnam fears falling exports will push target beyond reach
A slowdown in exports of some key items means the year’s export target of US$48 billion could be missed, a routine trade ministry meeting Tuesday heard. Pham The Dung, head of the Ministry of Trade’s Export-Import Department, said as a result the export sector faced a heavy burden in the second half.
As the country’s number one export turnover earner, crude oil plunged by 5 percent to $3.8 billion.
Oil industry insiders attributed the slip to declining global prices and lower than expected output by certain overseas operations.
Rice exports fell by 5 percent to $732 million. Huynh Minh Hue, deputy general secretary of the Vietnam Food Association, said a shortfall in cargo services and a 40 percent hike in transport costs had pushed exports down.
As a result, shipments to some key markets like Russia, Cuba, and South Africa had plunged by 75 percent, 67 percent, and 58 percent respectively.
Footwear exports fetched $1.9 billion, a year-on-year rise of 11 percent against a targeted rise of 21 percent.
This was mainly due to anti-dumping duties slapped by the EU which buys 80 percent of Vietnamese footwear exports.
Exporters failed to address the problem by finding alternate markets.
However, despite the problems, the country‘s exports jumped by 20 percent in the first half to $22.5 billion.
Deputy Minister of Trade Nguyen Tinh Bien warned that nothing less than a massive effort would do to reach the export target.
The coffee, apparel, and seafood industries were on track to achieve their targets, especially apparel, which could reach its $7.3 - 7.5 billion goal.
A push was required to ensure fisheries, another important export item, achieved its export target.
The government had agreed to provide VND50 billion to set up facilities to test fisheries products to ensure they were free of banned chemical substances.
Van Thanh Huy, chairman of the Vietnam Coffee Association, said coffee exports had already achieved 92 percent of the whole year’s target with revenues of $1.5 billion so far.
But he was worried that the low coffee quality could hurt the goal.
A Ho Chi Minh City-based coffee trader admitted that Vietnamese coffee had 1 percent impurities compared to 0.5 percent elsewhere.
Exports are expected to maintain robust growth, helped by Vietnam's membership in the WTO. The country’s ambitious export goal is to reach a whopping $100 billion in export value by 2010, according to the Ministry of Trade.
The nation’s four giant exporting markets now are the EU, the US, Japan and China.
Trade officials said exports to the US were forecast to rise 35 percent from last year to nearly $11 billion in total this year while revenues from goods sold to Europe would jump 22 percent to $8.3 billion by the year’s end.
Source: Reuters
As the country’s number one export turnover earner, crude oil plunged by 5 percent to $3.8 billion.
Oil industry insiders attributed the slip to declining global prices and lower than expected output by certain overseas operations.
Rice exports fell by 5 percent to $732 million. Huynh Minh Hue, deputy general secretary of the Vietnam Food Association, said a shortfall in cargo services and a 40 percent hike in transport costs had pushed exports down.
As a result, shipments to some key markets like Russia, Cuba, and South Africa had plunged by 75 percent, 67 percent, and 58 percent respectively.
Footwear exports fetched $1.9 billion, a year-on-year rise of 11 percent against a targeted rise of 21 percent.
This was mainly due to anti-dumping duties slapped by the EU which buys 80 percent of Vietnamese footwear exports.
Exporters failed to address the problem by finding alternate markets.
However, despite the problems, the country‘s exports jumped by 20 percent in the first half to $22.5 billion.
Deputy Minister of Trade Nguyen Tinh Bien warned that nothing less than a massive effort would do to reach the export target.
The coffee, apparel, and seafood industries were on track to achieve their targets, especially apparel, which could reach its $7.3 - 7.5 billion goal.
A push was required to ensure fisheries, another important export item, achieved its export target.
The government had agreed to provide VND50 billion to set up facilities to test fisheries products to ensure they were free of banned chemical substances.
Van Thanh Huy, chairman of the Vietnam Coffee Association, said coffee exports had already achieved 92 percent of the whole year’s target with revenues of $1.5 billion so far.
But he was worried that the low coffee quality could hurt the goal.
A Ho Chi Minh City-based coffee trader admitted that Vietnamese coffee had 1 percent impurities compared to 0.5 percent elsewhere.
Exports are expected to maintain robust growth, helped by Vietnam's membership in the WTO. The country’s ambitious export goal is to reach a whopping $100 billion in export value by 2010, according to the Ministry of Trade.
The nation’s four giant exporting markets now are the EU, the US, Japan and China.
Trade officials said exports to the US were forecast to rise 35 percent from last year to nearly $11 billion in total this year while revenues from goods sold to Europe would jump 22 percent to $8.3 billion by the year’s end.
Source: Reuters
Saturday, July 21, 2007
Hapaco to begin building refinery end-2007
Vietnamese tissue paper maker Hapaco (HAP) said on Friday it would begin building a 20,000-bpd oil refinery in the northern port city of Haiphong at the end of this year.
In January the firm said it had secured a deal to borrow $128 million from Sachsen LB bank of Germany to finance a $150-million oil refinery project which is slated to be operational by 2010.
"A management team has been formed to organise construction of the plant by the end of 2007," Hapaco said in a statement published by the Ho Chi Minh Stock Exchange.
Many foreign and local companies have sought to build refineries with investments of under $500 million but none of the projects have materialised so far because of the lack of access to crude oil controlled by state oil group Petrovietnam.
Petrovietnam began building the country's first 130,000-bpd refinery in 2005 and aims to complete the plant by early 2009.
Haiphong-based Hapaco also said in the statement its first half net profit more than tripled to 25 billion dong ($1.55 million), exceeding its target for the whole year of 22 billion dong thanks to expanded production at its new pulp plant.
The firm also said exports -- mainly joss-paper used widely in Taiwan and China for offerings -- during the first six months jumped 37.5 percent from a year earlier to $5.5 million.
It did not provide revenue figures for the first half but said revenue during the period jumped 24.3 percent from a year ago.
Hapaco's stock closed at 86,000 dong ($5.3) on the Ho Chi Minh Stock Exchange on Friday, up 4.88 percent from Thursday.
Source: Reuters
In January the firm said it had secured a deal to borrow $128 million from Sachsen LB bank of Germany to finance a $150-million oil refinery project which is slated to be operational by 2010.
"A management team has been formed to organise construction of the plant by the end of 2007," Hapaco said in a statement published by the Ho Chi Minh Stock Exchange.
Many foreign and local companies have sought to build refineries with investments of under $500 million but none of the projects have materialised so far because of the lack of access to crude oil controlled by state oil group Petrovietnam.
Petrovietnam began building the country's first 130,000-bpd refinery in 2005 and aims to complete the plant by early 2009.
Haiphong-based Hapaco also said in the statement its first half net profit more than tripled to 25 billion dong ($1.55 million), exceeding its target for the whole year of 22 billion dong thanks to expanded production at its new pulp plant.
The firm also said exports -- mainly joss-paper used widely in Taiwan and China for offerings -- during the first six months jumped 37.5 percent from a year earlier to $5.5 million.
It did not provide revenue figures for the first half but said revenue during the period jumped 24.3 percent from a year ago.
Hapaco's stock closed at 86,000 dong ($5.3) on the Ho Chi Minh Stock Exchange on Friday, up 4.88 percent from Thursday.
Source: Reuters
Tuesday, July 17, 2007
PVI insures offloading unit building
PetroVietnam Insurance (PVI) decided to enter a 120 million USD insurance contract for construction of the floating storage and offloading unit 5 (FSO-5) by the Viet Nam Shipbuilding Industry Corporation (Vinashin).
The contract was signed by PVI and Vinashin in Ha Noi on July 16.
FSO-5 is the biggest ever shipbuilding project in the country currently carried out by Vinashin.
According to Vinashin, FSOs are commonly used in oil fields where piplines linking the drilling platform with onshore facilities are either impossible or inefficient. The platform will transfer oil to the FSO where it will be stored until a tanker arrives.
Once completed after 14 months of construction, the FSO will be handed over to the Viet Nam-Russian Oil and Gas Joint Venture (VietsovPetro) for operation at Bach Ho (White Tiger) and Rong (Dragon) oil fields off southern coastal province of Ba Ria-Vung Tau.
PVI is an insurer that provides package insurance programmes to all projects from equipment and goods transportation to warranty and responsibility for the third party, said its General Director Nguyen Anh Tuan.
Source: VNA
The contract was signed by PVI and Vinashin in Ha Noi on July 16.
FSO-5 is the biggest ever shipbuilding project in the country currently carried out by Vinashin.
According to Vinashin, FSOs are commonly used in oil fields where piplines linking the drilling platform with onshore facilities are either impossible or inefficient. The platform will transfer oil to the FSO where it will be stored until a tanker arrives.
Once completed after 14 months of construction, the FSO will be handed over to the Viet Nam-Russian Oil and Gas Joint Venture (VietsovPetro) for operation at Bach Ho (White Tiger) and Rong (Dragon) oil fields off southern coastal province of Ba Ria-Vung Tau.
PVI is an insurer that provides package insurance programmes to all projects from equipment and goods transportation to warranty and responsibility for the third party, said its General Director Nguyen Anh Tuan.
Source: VNA
Monday, July 16, 2007
Petrolimex unit raises $4 mln in share sale
Vietnam's Petrolimex Petrochemical Company (PLC) raised $4 million from auctioning around 1 million new shares on Monday, the over-the-counter Hanoi stock market said.
The Hanoi-based firm had said it wanted to raise at least $18.6 million by selling 5 million shares, but investors bought only 1,096,500 shares at the auction at an average price of 60,250 dong, the market said in a statement.
Foreigners bought 754,500 shares, it said without giving a reason for the lower-than-expected sale.
The company, also known as PLC, produces and trades lubricants and bitumen.
It plans to sell another tranche of 5 million new shares next year to raise its chartered capital to 250 billion dong ($15.5 million) from 150 billion dong.
State-owned parent Petrolimex, which controls 60 percent of Vietnam's oil product import and retail market, would reduce its stake in PLC to 51 percent by 2010 from 85 percent now, PLC's prospectus published last month said.
Shares in PLC closed down 11 percent at 52,500 dong ($3.3) on Monday, valuing the firm at nearly $50 million.
Source: Reuters
The Hanoi-based firm had said it wanted to raise at least $18.6 million by selling 5 million shares, but investors bought only 1,096,500 shares at the auction at an average price of 60,250 dong, the market said in a statement.
Foreigners bought 754,500 shares, it said without giving a reason for the lower-than-expected sale.
The company, also known as PLC, produces and trades lubricants and bitumen.
It plans to sell another tranche of 5 million new shares next year to raise its chartered capital to 250 billion dong ($15.5 million) from 150 billion dong.
State-owned parent Petrolimex, which controls 60 percent of Vietnam's oil product import and retail market, would reduce its stake in PLC to 51 percent by 2010 from 85 percent now, PLC's prospectus published last month said.
Shares in PLC closed down 11 percent at 52,500 dong ($3.3) on Monday, valuing the firm at nearly $50 million.
Source: Reuters
Friday, July 13, 2007
PVI provides risk management to Dung Quat oil refinery
PetroVietnam Insurance (PVI) will provide the Dung Quat oil refinery with risk management consultation and insurance services worth over 3 billion USD per year.
Under an agreement that was signed in central Quang Ngai province on July 12, the insurance package will cover assets, personal safety, construction, installation and transportation insurance for the refinery.
Covering 338 ha of land and 473 ha of water in Quang Ngai province’s Binh Son district, t he 2.5 billion USD Dung Quat oil refinery will be capable of processing 6.5 million tonnes of crude oil per year and refine 33 percent of the country’s entire demand for petrol and oil. Its products will include protylen, liquefied petroleum gas (LPG), lead-free petrol, diesel oil and fuel oil.
PVI is now the sole insurer for the refinery, providing insurance services from design to the refinery’s initial test run.
Source: VNA
Under an agreement that was signed in central Quang Ngai province on July 12, the insurance package will cover assets, personal safety, construction, installation and transportation insurance for the refinery.
Covering 338 ha of land and 473 ha of water in Quang Ngai province’s Binh Son district, t he 2.5 billion USD Dung Quat oil refinery will be capable of processing 6.5 million tonnes of crude oil per year and refine 33 percent of the country’s entire demand for petrol and oil. Its products will include protylen, liquefied petroleum gas (LPG), lead-free petrol, diesel oil and fuel oil.
PVI is now the sole insurer for the refinery, providing insurance services from design to the refinery’s initial test run.
Source: VNA
Monday, July 09, 2007
PetroVietnam subsidiaries fare well after equitisation
The Viet Nam Oil and Gas Group (PetroVietnam) said that its subsidiaries have fared well after going public, with their revenues and profits increasing by an average 50 percent and nearly 100 percent, respectively.
The group pointed to the PetroViet Nam Drilling and Well Service Joint Stock Company, whose revenue rose by 67 percent and profit by 142 percent from its yearly plans in 2006 as proof of the efficient operation of its equitised subsidiaries.
Another subsidiary, the PetroViet Nam Construction Joint Stock Company, also reported a 28-percent increase in revenue last year, it added.
Alongside equitisation, PetroViet Nam is boosting the restructuring of its member companies.
So far, the group has transformed four state-owned enterprises into one-member limited liability companies and three joint stock companies into a holding corporation.
Source: VNA
The group pointed to the PetroViet Nam Drilling and Well Service Joint Stock Company, whose revenue rose by 67 percent and profit by 142 percent from its yearly plans in 2006 as proof of the efficient operation of its equitised subsidiaries.
Another subsidiary, the PetroViet Nam Construction Joint Stock Company, also reported a 28-percent increase in revenue last year, it added.
Alongside equitisation, PetroViet Nam is boosting the restructuring of its member companies.
So far, the group has transformed four state-owned enterprises into one-member limited liability companies and three joint stock companies into a holding corporation.
Source: VNA
Friday, July 06, 2007
Equitisation of oil and gas firms nearly complete
The oil and gas industry has virtually completed its entire equitisation process under a plan to form the Viet Nam Oil and Gas Group (PetroVietnam).
To date, 11 subsidiaries of PetroVietnam have been equitised with more than 289.5 million shares sold, or 94.2 percent of the total offered, close to 2,895 billion VND at face value. It raked in 14,960 billion VND.
The group also restructured the proportion of capital held by the State at its 11 equitised enterprises. As a result the State now holds 61.2 percent, or 4,611 billion VND, of their registered capital with the remaining shares being sold to staff and shareholders to bring in 16,345 billion VND for further business development.
Source: VNA
To date, 11 subsidiaries of PetroVietnam have been equitised with more than 289.5 million shares sold, or 94.2 percent of the total offered, close to 2,895 billion VND at face value. It raked in 14,960 billion VND.
The group also restructured the proportion of capital held by the State at its 11 equitised enterprises. As a result the State now holds 61.2 percent, or 4,611 billion VND, of their registered capital with the remaining shares being sold to staff and shareholders to bring in 16,345 billion VND for further business development.
Source: VNA
Wednesday, June 27, 2007
PVD expects H1 revenues to double
Petrovietnam rig operator PV Drilling (PVD) said on Wednesday it expects revenues to more than double in the first half of 2007 from a year ago to 920 billion dong ($57 million).
"The rise in revenues is generated mainly by the rent of our new drilling rig," a company spokesman said.
The firm's first-half net profit was expected to reach 205 billion dong ($12.7 million), more than four times that of a year earlier, he said.
PV Drilling has set a target for whole year revenues of $142.8 million and net profit of $35 million this year.
The spokesman said the Ho Chi Minh City-based firm had signed a contract to rent its PV Drilling I rig to an exploration firm in Vietnam for the 2007-2009 period with a monthly rent of $215,000.
The firm said earlier this month it planned to invest about $200 million to purchase a third jackup drilling rig to meet soaring demand from oil explorers.
Last month, it awarded a $191 million contract to Singapore's Keppel Corp. to build its second rig for delivery in 2009.
In March, the firm took delivery of the PV Drilling I rig, also built by Keppel Corp, at a cost of $115 million.
PV Drilling officials have said the company would focus on Vietnamese waters for the next few years as exploration activity was expected to pick up in the area, with an estimated 55 to 60 wells to be drilled this year alone.
Source: Reuters
"The rise in revenues is generated mainly by the rent of our new drilling rig," a company spokesman said.
The firm's first-half net profit was expected to reach 205 billion dong ($12.7 million), more than four times that of a year earlier, he said.
PV Drilling has set a target for whole year revenues of $142.8 million and net profit of $35 million this year.
The spokesman said the Ho Chi Minh City-based firm had signed a contract to rent its PV Drilling I rig to an exploration firm in Vietnam for the 2007-2009 period with a monthly rent of $215,000.
The firm said earlier this month it planned to invest about $200 million to purchase a third jackup drilling rig to meet soaring demand from oil explorers.
Last month, it awarded a $191 million contract to Singapore's Keppel Corp. to build its second rig for delivery in 2009.
In March, the firm took delivery of the PV Drilling I rig, also built by Keppel Corp, at a cost of $115 million.
PV Drilling officials have said the company would focus on Vietnamese waters for the next few years as exploration activity was expected to pick up in the area, with an estimated 55 to 60 wells to be drilled this year alone.
Source: Reuters
Saturday, June 23, 2007
Contract for exploration of offshore oil and gas inked
A product sharing contract (PSC) for the exploration and exploitation of oil and gas on Viet Nam’s northern continental shelf was signed in Ha Noi on June 22.
The agreement was reached between the Viet Nam National Oil and Gas Group (PetroVietnam) and the contractors - PetroVietnam Exploration and Production (PVEP) and Petronas Carigali Overseas Sdn.Bhd.
The two contractors will outlay 57.7 million USD on exploring oil and gas at Block 103-107. Fifty-five percent of the financing is to be contributed by PVEP, a subsidiary of PetroVietnam, and the remainder by Petronas Carigali Overseas, an arm of Malaysian oil giant Petronas.
Block 103-107 covers 11,962 sq.km, around 100 km off the coast at a depth of 25-50 m. Under a contract signed with PetroVietnam in 1988, the French firm Total made three drill-holes at the area to explore oil and gas but were unsuccessful in their efforts.
Recently, the PetroVietnam Investment and Development Company found gas and condensate at Hong Long and Hoang Long structures within the area and reserves have been estimated at 50 billion cu.m of gas and 45 million barrels of condensate.
Source: VNA
The agreement was reached between the Viet Nam National Oil and Gas Group (PetroVietnam) and the contractors - PetroVietnam Exploration and Production (PVEP) and Petronas Carigali Overseas Sdn.Bhd.
The two contractors will outlay 57.7 million USD on exploring oil and gas at Block 103-107. Fifty-five percent of the financing is to be contributed by PVEP, a subsidiary of PetroVietnam, and the remainder by Petronas Carigali Overseas, an arm of Malaysian oil giant Petronas.
Block 103-107 covers 11,962 sq.km, around 100 km off the coast at a depth of 25-50 m. Under a contract signed with PetroVietnam in 1988, the French firm Total made three drill-holes at the area to explore oil and gas but were unsuccessful in their efforts.
Recently, the PetroVietnam Investment and Development Company found gas and condensate at Hong Long and Hoang Long structures within the area and reserves have been estimated at 50 billion cu.m of gas and 45 million barrels of condensate.
Source: VNA
Friday, June 22, 2007
Incombank signs PetroVietnam deal
Industrial Commercial Bank of Viet Nam (Incombank) will act as PetroVietnam’s primary provider of financial services under an agreement signed on June 21 Ha Noi.
PetroVietnam will also offer Incombank opportunities to directly invest in domestic and overseas projects, said Tran Ngoc Canh, general director of the State-owned oil company.
”I do believe that this cooperation will bring more opportunities for both of us in terms of supporting investment capital, expanding operational networks, diversifying business sectors, and exploiting each other’s advantages,” said Incombank general director Pham Huy Hung at the signing ceremony on June 21.
Under the agreement, Incombank would commit loans at favourable interest rates as well as provide other financial services to PetroVietnam and its subsidiaries.
Since the beginning of the year, Incombank has signed similar agreements with local giants like the Viet Nam National Cement Corporation (VNCC), the Viet Nam National Coal and Mineral Industry Group (Vinacomin), and the Viet Nam Post and Telecommunications Group (VNPT).
Hung also said Incombank has speeded up negotiations with leading local companies to become strategic partners as it expands.
Source: VNA
PetroVietnam will also offer Incombank opportunities to directly invest in domestic and overseas projects, said Tran Ngoc Canh, general director of the State-owned oil company.
”I do believe that this cooperation will bring more opportunities for both of us in terms of supporting investment capital, expanding operational networks, diversifying business sectors, and exploiting each other’s advantages,” said Incombank general director Pham Huy Hung at the signing ceremony on June 21.
Under the agreement, Incombank would commit loans at favourable interest rates as well as provide other financial services to PetroVietnam and its subsidiaries.
Since the beginning of the year, Incombank has signed similar agreements with local giants like the Viet Nam National Cement Corporation (VNCC), the Viet Nam National Coal and Mineral Industry Group (Vinacomin), and the Viet Nam Post and Telecommunications Group (VNPT).
Hung also said Incombank has speeded up negotiations with leading local companies to become strategic partners as it expands.
Source: VNA
Where are billion dollars to be injected?
Vietnamese people heard recently that foreign investment funds are planning to pour several billion dollars worth of capital into Vietnam. And a question has been raised about where the huge capital is to be injected in, as there seems to be no more room for foreign investors.
Foreign investors now hold 49% of shares in big companies, including AGF, BMP, SAM and TAY, and 30% in STB. Under the current regulations, foreign ownership must not be higher than 49% in local joint stock companies, and 30% in local joint stock banks, which means foreign investors have no more opportunities to buy shares of the companies.
Meanwhile, the room for foreign ownership in other companies is also nearly running out: the foreign ownership in BT6 is 48.96%, CII 48.98%, SJS 44.98%, and VNM 46.26%. Especially, REE and SHC “have been well in advance of the age” as the two companies have sold 55.47% and 56.5% of shares respectively to foreign investors
Dang Huu Chau, former student of Tokyo University, who is now the securities broker for many Japanese tourists/securities investors in Vietnamese stock, also said that the share items of which the foreign ownership hits the ceiling level of 49% or 30% are the ones that can bring the fattest profit. Many Japanese investors want to make investments in these blue chips, but they cannot because there is no more room for them.
The Securities Brokerage Division under the Saigon Securities Incorporated (SSI) also said that many foreign investors could not buy the share items they want though they placed orders three weeks ago.
In fact, foreign investors still can buy some blue chips, but just in small volume as the room in these companies is nearly running out. However, as for foreign investment funds, the small volume is not worth their disbursement.
Don Lam, Director General of Vina Capital stressed that only when Vietnam offers more room for foreign investors, can the market become more bustling.
Raising the foreign ownership ratio in local companies proves to be the best solution to lure more foreign capital into Vietnam. However, the State Securities Commission (SSC) has recently stated that the Government of Vietnam does not think of this issue right at this moment. As such, several billion dollars worth of investment capital are still waiting to be injected in Vietnam.
Foreign investors believe that opportunities will come in several months, when a lot of big companies make IPOs. They also heard that SSC is compiling a new regulation on foreign investors’ management, which may allow foreign investment funds to open branches in Vietnam sooner than that stipulated in WTO commitments. However, analysts have warned that there would not be many chances for them, as the companies that make IPOs operate in the fields that limits foreign ownership, including banking, telecommunication and finance.
These companies include Vietcombank, BIDV (banking), MobiFone and Vinaphone (telecommunication).
In May 2007, foreign investors doubled the investment in Vietnam’s stocks: they injected $150mil in stocks in May, while the figure was $80mil in April, equal to the sum of money they poured into Vietnam in December 2006, and February 2007 (Source: Vietnam Monitor 2, June 8, 2007, HSBC Hong Kong).
Garry Evans, the stocks analyst of HSBC, who has been keeping close watch over Vietnam’s stock market, has advised investors to remain cautious with their deals, and not to become aggressive buyers at this moment, since the P/E Index proves to be too high: 34. The analyst said that investors should wait for the IPOs to appear in August, October and December.
However, a lot of foreign investors cannot keep patient as they were advised, as they have been put under hard pressure to disburse funds’ capital. Investment funds from the Republic of Korea, for example, have successfully raised $1bil worth of capital and they now compete with others in capital disbursement. Korean investors are the ones who won the right to buy most of Bao Viet’s shares at the recently held auction.
The analyst has named some share items that foreign investors can still buy in, FPT, VHS, PPC, PVD, SJS and ITA (the foreign ownership in these companies is below 20%). If the HCM City Securities Trading Centre (HSTC) does not offer more commodities, the foreign capital flow will not be able to increase.
Meanwhile, HSTC has reported that it has just received the applications for listing from few companies. At this moment, it seems to be not the right time to list, when the daily trading value is just VND500-600bil ($31.25mil).
Source: VNE
Foreign investors now hold 49% of shares in big companies, including AGF, BMP, SAM and TAY, and 30% in STB. Under the current regulations, foreign ownership must not be higher than 49% in local joint stock companies, and 30% in local joint stock banks, which means foreign investors have no more opportunities to buy shares of the companies.
Meanwhile, the room for foreign ownership in other companies is also nearly running out: the foreign ownership in BT6 is 48.96%, CII 48.98%, SJS 44.98%, and VNM 46.26%. Especially, REE and SHC “have been well in advance of the age” as the two companies have sold 55.47% and 56.5% of shares respectively to foreign investors
Dang Huu Chau, former student of Tokyo University, who is now the securities broker for many Japanese tourists/securities investors in Vietnamese stock, also said that the share items of which the foreign ownership hits the ceiling level of 49% or 30% are the ones that can bring the fattest profit. Many Japanese investors want to make investments in these blue chips, but they cannot because there is no more room for them.
The Securities Brokerage Division under the Saigon Securities Incorporated (SSI) also said that many foreign investors could not buy the share items they want though they placed orders three weeks ago.
In fact, foreign investors still can buy some blue chips, but just in small volume as the room in these companies is nearly running out. However, as for foreign investment funds, the small volume is not worth their disbursement.
Don Lam, Director General of Vina Capital stressed that only when Vietnam offers more room for foreign investors, can the market become more bustling.
Raising the foreign ownership ratio in local companies proves to be the best solution to lure more foreign capital into Vietnam. However, the State Securities Commission (SSC) has recently stated that the Government of Vietnam does not think of this issue right at this moment. As such, several billion dollars worth of investment capital are still waiting to be injected in Vietnam.
Foreign investors believe that opportunities will come in several months, when a lot of big companies make IPOs. They also heard that SSC is compiling a new regulation on foreign investors’ management, which may allow foreign investment funds to open branches in Vietnam sooner than that stipulated in WTO commitments. However, analysts have warned that there would not be many chances for them, as the companies that make IPOs operate in the fields that limits foreign ownership, including banking, telecommunication and finance.
These companies include Vietcombank, BIDV (banking), MobiFone and Vinaphone (telecommunication).
In May 2007, foreign investors doubled the investment in Vietnam’s stocks: they injected $150mil in stocks in May, while the figure was $80mil in April, equal to the sum of money they poured into Vietnam in December 2006, and February 2007 (Source: Vietnam Monitor 2, June 8, 2007, HSBC Hong Kong).
Garry Evans, the stocks analyst of HSBC, who has been keeping close watch over Vietnam’s stock market, has advised investors to remain cautious with their deals, and not to become aggressive buyers at this moment, since the P/E Index proves to be too high: 34. The analyst said that investors should wait for the IPOs to appear in August, October and December.
However, a lot of foreign investors cannot keep patient as they were advised, as they have been put under hard pressure to disburse funds’ capital. Investment funds from the Republic of Korea, for example, have successfully raised $1bil worth of capital and they now compete with others in capital disbursement. Korean investors are the ones who won the right to buy most of Bao Viet’s shares at the recently held auction.
The analyst has named some share items that foreign investors can still buy in, FPT, VHS, PPC, PVD, SJS and ITA (the foreign ownership in these companies is below 20%). If the HCM City Securities Trading Centre (HSTC) does not offer more commodities, the foreign capital flow will not be able to increase.
Meanwhile, HSTC has reported that it has just received the applications for listing from few companies. At this moment, it seems to be not the right time to list, when the daily trading value is just VND500-600bil ($31.25mil).
Source: VNE
Wednesday, June 20, 2007
PetroVietnam earnings up 2%
Despite lower than expected output on certain overseas operations, Viet Nam Oil and Gas Group (PetroVietnam) on June 19 reported a revenue of 84.6 trillion VND (5.3 billion USD) in the first half of the year, up 2.8% over the same period in 2006.
The State-owned enterprise hopes to generate over 168 trillion VND by the end of the year.
In the first two quarters, the company produces 11.73 million tonnes of gas and oil, which executives consider strong but below expectations. The figure represents 47.3% of the company’s 2007 target.
“The amount of gas and oil produced was still large. We could have exploited more but we didn’t because it would have affected oil and gas fields,” Tran Ngoc Canh, general director of Petrovietnam, was quoted as saying in a press release issued on June 19.
Despite the shortcomings, PetroVietnam signed four contracts during the first six months of the year to explore other offshore oil fields in Viet Nam. The company now has nine exploration contracts in place with foreign partners.
PetroVietnam also reported its service sector developed well over the two quarters with 16 trillion VND (1 billion USD) in revenues generated through these activities. The figure represents about 19% of the company's overall earnings.
"PetroVietnam hopes to become interdisciplinary. We will develop into many different fields including finance, banking and securities," said Dinh La Thang, PetroVietnam chairman.
The company hopes services will account for 50% of its overall revenue by 2025.
Since January, PetroVietnam has invested 18.9 trillion VND in new and ongoing projects. It also contributed 30 trillion VND (1.8 billion USD) to the State budget in the six months, down nearly 10% year-on-year.
Oil and gas exports in the first two quarters reached 7.68 million tonnes, about 46.5% of the company's annual target. The oil and gas output for the second half of 2007 is expected to reach 13.15 million tonnes.
Source: VNA
The State-owned enterprise hopes to generate over 168 trillion VND by the end of the year.
In the first two quarters, the company produces 11.73 million tonnes of gas and oil, which executives consider strong but below expectations. The figure represents 47.3% of the company’s 2007 target.
“The amount of gas and oil produced was still large. We could have exploited more but we didn’t because it would have affected oil and gas fields,” Tran Ngoc Canh, general director of Petrovietnam, was quoted as saying in a press release issued on June 19.
Despite the shortcomings, PetroVietnam signed four contracts during the first six months of the year to explore other offshore oil fields in Viet Nam. The company now has nine exploration contracts in place with foreign partners.
PetroVietnam also reported its service sector developed well over the two quarters with 16 trillion VND (1 billion USD) in revenues generated through these activities. The figure represents about 19% of the company's overall earnings.
"PetroVietnam hopes to become interdisciplinary. We will develop into many different fields including finance, banking and securities," said Dinh La Thang, PetroVietnam chairman.
The company hopes services will account for 50% of its overall revenue by 2025.
Since January, PetroVietnam has invested 18.9 trillion VND in new and ongoing projects. It also contributed 30 trillion VND (1.8 billion USD) to the State budget in the six months, down nearly 10% year-on-year.
Oil and gas exports in the first two quarters reached 7.68 million tonnes, about 46.5% of the company's annual target. The oil and gas output for the second half of 2007 is expected to reach 13.15 million tonnes.
Source: VNA
Saturday, June 16, 2007
Electricity, Oil and Gas Corporation make debut
The Viet Nam National Oil and Gas Group (PetroVietnam) rolled out a new subsidiary energy services company in Ha Noi, on June 15.
The Electricity, Oil and Gas Corporation has registered capital of 7.6 trillion VND and will be active in electricity production and services, investment in electricity projects, imports and exports of energy and materials.
Le Hong Tinh, General Director of the Electricity, Oil and Gas Corporation, said that the corporation is aiming to eventually churn out about 30-40% of the country’s total electrical output.
Source: VNA
The Electricity, Oil and Gas Corporation has registered capital of 7.6 trillion VND and will be active in electricity production and services, investment in electricity projects, imports and exports of energy and materials.
Le Hong Tinh, General Director of the Electricity, Oil and Gas Corporation, said that the corporation is aiming to eventually churn out about 30-40% of the country’s total electrical output.
Source: VNA
Friday, June 15, 2007
PetroVietnam subsidiaries to cooperate
Three PetroVietnam subsidiaries on June 14 signed a collaboration agreement on risk management, insurance and financial services for a five-year period.
PetroVietnam Insurance (PVI) would provide insurance services to PV Exploitation and Production (PVEP) projects, as well as insurance and finance training courses for staff at the partner company.
Under the agreement, PVI and PVFC (PetroVietnam Finance Corporation) would also join in PVEP’s investment activities, as well as insurance activities for projects.
PVEP’s general director, Nguyen Van Minh, said the agreement also had PVEP using PVI as a consultant on risk management and insurance for projects that PVEP invests in.
”PVEP at present is conducting 30 domestic projects for oil exploitation, and eight foreign ones with Malaysia, Venezuela and Middle East countries,” said Minh.
”Insurance is necessary to ensure the speed and the effectiveness of the projects.”
PVFC was also set to become a trustee of capital, with a preferential interest rate, for PVEP and PVI projects.
Chairman of PetroVietnam Dinh La Thang said that while it was not the first collaboration between the domestic subsidiaries, he hoped the agreement would help raise the quality of oil as well as promote the effectiveness of Viet Nam’s oil and gas activities.
Source: VNA
PetroVietnam Insurance (PVI) would provide insurance services to PV Exploitation and Production (PVEP) projects, as well as insurance and finance training courses for staff at the partner company.
Under the agreement, PVI and PVFC (PetroVietnam Finance Corporation) would also join in PVEP’s investment activities, as well as insurance activities for projects.
PVEP’s general director, Nguyen Van Minh, said the agreement also had PVEP using PVI as a consultant on risk management and insurance for projects that PVEP invests in.
”PVEP at present is conducting 30 domestic projects for oil exploitation, and eight foreign ones with Malaysia, Venezuela and Middle East countries,” said Minh.
”Insurance is necessary to ensure the speed and the effectiveness of the projects.”
PVFC was also set to become a trustee of capital, with a preferential interest rate, for PVEP and PVI projects.
Chairman of PetroVietnam Dinh La Thang said that while it was not the first collaboration between the domestic subsidiaries, he hoped the agreement would help raise the quality of oil as well as promote the effectiveness of Viet Nam’s oil and gas activities.
Source: VNA
Comeco builds depot to import oil products
Vietnamese petrol station operator Comeco (COM) said on Wednesday it plans to import oil products when its oil depot and terminal is completed next year.
"Currently we are only a distributor for state oil product importers but with the new facility we will be able to become an importer ourselves" a senior company official told Reuters.
Vietnam, which allows only 11 state-run companies to import oil products, has said it would consider applications from domestic private firms to import fuel but they must have suitable infrastructure such as oil depots and terminals.
The domestic oil products market, which is expected to consume around 4 million tonnes of gasoline this year, is dominated by state-run Petrolimex. Its share is about 60%.
Comeco, which expects revenues of nearly $117 million this year, said it would invest nearly $8 million in its 40,400 cubic metre oil depot in the industrial hub Dong Nai province, near Ho Chi Minh City in the initial phase of the project.
The project also includes a terminal that could accommodate tankers of between 25,000 and 36,000 dead-weight-tonnes.
"Our plan is to raise the tank capacity to 100,000 cubic metres in the second phase of the project to supply to our expanded petrol stations network," said the official, who declined to be identified.
He said the company, which operates around 32 retail outlets in Ho Chi Minh City, would build new filling stations in other southern provinces as part of its business expansion plan.
Hanoi, which still bans foreign firms from the gasoline retail markets, has been cutting government fuel subsidies and slowly deregulating the fuel market.
In April the government for the first time decided to let importers from May 1 to set their own retail prices, a move that has triggered interest from the private sector to invest in the potentially lucrative fuel market, traders said.
Shares in Comeco rose 1.45% to close at 70,000 dong ($4.3) on Wednesday, valuing the company at 230 billion dong ($14.3 million).
Source: Reuters
"Currently we are only a distributor for state oil product importers but with the new facility we will be able to become an importer ourselves" a senior company official told Reuters.
Vietnam, which allows only 11 state-run companies to import oil products, has said it would consider applications from domestic private firms to import fuel but they must have suitable infrastructure such as oil depots and terminals.
The domestic oil products market, which is expected to consume around 4 million tonnes of gasoline this year, is dominated by state-run Petrolimex. Its share is about 60%.
Comeco, which expects revenues of nearly $117 million this year, said it would invest nearly $8 million in its 40,400 cubic metre oil depot in the industrial hub Dong Nai province, near Ho Chi Minh City in the initial phase of the project.
The project also includes a terminal that could accommodate tankers of between 25,000 and 36,000 dead-weight-tonnes.
"Our plan is to raise the tank capacity to 100,000 cubic metres in the second phase of the project to supply to our expanded petrol stations network," said the official, who declined to be identified.
He said the company, which operates around 32 retail outlets in Ho Chi Minh City, would build new filling stations in other southern provinces as part of its business expansion plan.
Hanoi, which still bans foreign firms from the gasoline retail markets, has been cutting government fuel subsidies and slowly deregulating the fuel market.
In April the government for the first time decided to let importers from May 1 to set their own retail prices, a move that has triggered interest from the private sector to invest in the potentially lucrative fuel market, traders said.
Shares in Comeco rose 1.45% to close at 70,000 dong ($4.3) on Wednesday, valuing the company at 230 billion dong ($14.3 million).
Source: Reuters
PVD to buy third jackup rig
Petrovietnam's drilling arm, PV Drilling (PVD), plans to purchase a third jackup drilling rig to meet soaring demand from oil explorers, a company official said on Tuesday.
"We have plan to place the order for our third rig within this year," the official from the Ho Chi Minh City-based firm said.
He said the offshore rig would cost around $200 million.
The company has not yet decided on a supplier for the new rig.
Last month, it awarded a $191 million contract to Singapore's Keppel Corp. a contract to build its second rig for delivery in 2009.
In March, the firm took delivery of its first rig, also built by Keppel Corp, at a cost of $115 million.
PV Drilling said it had already signed a two-year drilling contract worth $150 million with Petrovietnam's oil exploration joint venture for its first rig.
PV Driling officials have said the company would focus on Vietnamese waters for the next few years where exploration activity was expected to pick up, with an estimated 55 to 60 wells to be drilled this year alone.
Earlier this month, PV Drilling's parent state oil Petrovietnam said it would start offering to foreign oil explorers seven offshore oil blocks via a competitive licensing tender on June 11 as part of a drive to shore up the country's crude oil reserves.
Source: Reuters
"We have plan to place the order for our third rig within this year," the official from the Ho Chi Minh City-based firm said.
He said the offshore rig would cost around $200 million.
The company has not yet decided on a supplier for the new rig.
Last month, it awarded a $191 million contract to Singapore's Keppel Corp. a contract to build its second rig for delivery in 2009.
In March, the firm took delivery of its first rig, also built by Keppel Corp, at a cost of $115 million.
PV Drilling said it had already signed a two-year drilling contract worth $150 million with Petrovietnam's oil exploration joint venture for its first rig.
PV Driling officials have said the company would focus on Vietnamese waters for the next few years where exploration activity was expected to pick up, with an estimated 55 to 60 wells to be drilled this year alone.
Earlier this month, PV Drilling's parent state oil Petrovietnam said it would start offering to foreign oil explorers seven offshore oil blocks via a competitive licensing tender on June 11 as part of a drive to shore up the country's crude oil reserves.
Source: Reuters
PVD to raise $38 mln in share issue
Petrovietnam's drilling arm, PV Drilling (PVD), plans to raise $37.8 million via the issue of more than 42 million shares by September as it looks to grow its equipment leasing business and pay a dividend.
Exploration activity around Vietnam is expected to accelerate in the next few years, with 300 wells in operation during 2006-2010, the company said.
Chief Executive Do Van Khanh said in a statement seen on Monday that Petrovietnam Drilling and Well Services Corp. would issue the shares to existing investors and institutions.
PV Drilling said it has a 10% share of Vietnam's drilling market, but has around 80% of the market for providing drilling equipment and well maintenance services.
Ho Chi Minh City-based PV Drilling expects to raise 609 billion dong ($37.8 million) to "contribute 51% of the 1,000 trillion dong registered capital to establish PVD Invest Company and add to business funds," Khanh said.
PVD Invest will import oil rigs and drilling equipment to lease to oil and gas firms operating off Vietnam's coast. In a pre-issue prospectus, PV Drilling said PVD Invest would invest in a $200 million multi-functional jackup rig.
PV Drilling forecast 2007 net revenue would jump 61.8% to 2.3 trillion dong ($142.8 million) and net profit would more than quadruple to 560 billion dong as its new jackup started operations in March.
In August, PV Drilling expects to operate its first land rig in Algeria as part of its business expansion.
Its prospectus showed revenue growth would slow to 8.7% in 2008. It gave no reason for this.
Shares in PV Drilling closed down 2.4% on the Ho Chi Minh Stock Exchange on Monday, valuing the company at a little over $1 billion.
January-March net profit rose to 36.4 billion dong, around 30% of the 2006 full-year net, which itself more than doubled to 120 billion dong.
Khanh said PV Drilling will sell 31.28 million shares to existing shareholders next month under a 100-for-46 plan at 10,000 dong each. The shares will be listed on Aug. 17.
Existing investors are entitled to a 14% dividend payment in shares and a bonus share award, for which PV Drilling will issue a combined 9.52 million shares for listing on July 11.
Institutional investors will bid for the remaining 1.34 million shares before Sept. 4.
As of March 16, state oil and gas group Petrovietnam held 51% of PV Drilling. Foreign institutions and individual investors owned a combined 11.71%, the prospectus said.
State-run Vietcombank, slated for its own IPO in July or August, had a 4.41% stake in PV Drilling.
Source: Reuters
Exploration activity around Vietnam is expected to accelerate in the next few years, with 300 wells in operation during 2006-2010, the company said.
Chief Executive Do Van Khanh said in a statement seen on Monday that Petrovietnam Drilling and Well Services Corp. would issue the shares to existing investors and institutions.
PV Drilling said it has a 10% share of Vietnam's drilling market, but has around 80% of the market for providing drilling equipment and well maintenance services.
Ho Chi Minh City-based PV Drilling expects to raise 609 billion dong ($37.8 million) to "contribute 51% of the 1,000 trillion dong registered capital to establish PVD Invest Company and add to business funds," Khanh said.
PVD Invest will import oil rigs and drilling equipment to lease to oil and gas firms operating off Vietnam's coast. In a pre-issue prospectus, PV Drilling said PVD Invest would invest in a $200 million multi-functional jackup rig.
PV Drilling forecast 2007 net revenue would jump 61.8% to 2.3 trillion dong ($142.8 million) and net profit would more than quadruple to 560 billion dong as its new jackup started operations in March.
In August, PV Drilling expects to operate its first land rig in Algeria as part of its business expansion.
Its prospectus showed revenue growth would slow to 8.7% in 2008. It gave no reason for this.
Shares in PV Drilling closed down 2.4% on the Ho Chi Minh Stock Exchange on Monday, valuing the company at a little over $1 billion.
January-March net profit rose to 36.4 billion dong, around 30% of the 2006 full-year net, which itself more than doubled to 120 billion dong.
Khanh said PV Drilling will sell 31.28 million shares to existing shareholders next month under a 100-for-46 plan at 10,000 dong each. The shares will be listed on Aug. 17.
Existing investors are entitled to a 14% dividend payment in shares and a bonus share award, for which PV Drilling will issue a combined 9.52 million shares for listing on July 11.
Institutional investors will bid for the remaining 1.34 million shares before Sept. 4.
As of March 16, state oil and gas group Petrovietnam held 51% of PV Drilling. Foreign institutions and individual investors owned a combined 11.71%, the prospectus said.
State-run Vietcombank, slated for its own IPO in July or August, had a 4.41% stake in PV Drilling.
Source: Reuters
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