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.
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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% 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% 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, the Republic of 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 (US$10.8 billion) in the first six months of 2017, up VND31.5 trillion (US$1.3 billion) compared to the same period last year, including after-tax profit of VND13.1 trillion (US$572.8 million), up VND2.6 trillion (US$113.6 million).
PetroVietnam has contributed VND44.2 trillion (US$1.9 billion) to the national budget, accounting for 59% of the 2017 plan.
