PVEP: Leading position in oil, gas exploration and exploitation

09:31 | 21/09/2018 Companies

(VEN) - In the development of the Vietnamese oil and gas industry, the PetroVietnam Exploration Production Corporation (PVEP) is a key unit of the Vietnam Oil and Gas Group (PetroVietnam) in oil and gas exploration and exploitation.

leading position in oil gas exploration and exploitation

On November 27, 1961, the Oil Exploration Expedition (Expedition 36) was established, marking a historic milestone for a period of organized oil and gas exploration and exploitation in the Democratic Republic of Vietnam (Later, the prime minister approved the 27th of November to be the traditional day of the Vietnamese oil and gas industry). Oil and gas exploration and exploitation has officially started.

To promote oil and gas exploration and exploitation, the Vietnam Oil and Gas General Department was established on September 3, 1975. At the beginning of 1977, the state approved the form and object of cooperation to carry out negotiations on a number of oil and gas lots with foreign partners who wish to invest in Vietnam. In order to comply with international law and regulations that avoid the signing of contracts between state management agencies and foreign companies, the government issued Decision 251/CP on the establishment of the Vietnam Oil and Gas Company (PetroVietnam) under the Vietnam Oil and Gas General Department on September 9, 1977.

By the end of the 1970s, oil and gas exploration and exploitation made significant advance as the Vietnam Oil and Gas Company signed some production-sharing contracts with Deminex (block 15), Agip (blocks 04, 12) and Bow Valley (blocks 28, 29), creating important premise for international cooperation in oil and gas exploration and exploitation.

To meet development needs, the Vietnam Oil and Gas General Department decided to establish PetroVietnam II (PV-II) on May 20, 1988 and PetroVietnam I (PV-I) on November 17, 1988, with their main task of monitoring the implementation of exploration contracts in the Vietnamese continental shelf. This event has contributed to setting up management and operation methods of oil and gas projects to carry out oil and gas exploration and exploitation activities at home and overseas.

To be in line with the actual operation, on March 20, 1993, PV-I was transformed into the PetroVietnam Production Sharing Contract Supervising Company (PVSC), with the direction of supervising petroleum contracts, while PV-II was transformed into the PetroVietnam Exploration Production Company, with the direction of participating in petroleum contracts. The PetroVietnam Investment Development Company (PIDC) was formed on February 14, 2000 as the next generation of PVSC to implement investment abroad. Right after its establishment, PIDC accelerated investment in domestic and foreign projects.

In 1994, the PetroVietnam Exploration Production Company joined BHP and other contractors to appraise and put into operation Dai Hung oilfield. The exploitation of Dai Hung oilfield in Nam Con Son basin has made an important contribution to attracting foreign investment in oil and gas exploration and exploitation in most of Vietnam’s sedimentary basins. Along with the success of Vietsovpetro in finding oil in the fractured granite, the application of new techniques has turned PVEP into an experienced company in oil exploration and exploitation in basements. Specifically, PVEP expanded oil and gas exploration and exploitation in basements of a series of oilfields, such as Su Tu Den, Su Tu Vang, Ca Ngu Vang and Diamond. In addition, PVEP worked with BP to discover Lan Tay and Lan Do gas fields, and with KNOC to discover Rong Doi and Rong Doi Tay fields. Oil and gas exploration and exploitation abroad also achieved important results, such as oil exploration in Block SK305 (Malaysia) and Blocks 433a and 416b (Algeria).

Implementing restructuring after PetroVietnam was transformed from state-owned enterprise to economic group, PVEP was inaugurated on May 4, 2007 on the basis of a merger of PIDC and the PetroVietnam Exploration Production Company. The setting up of this corporation is a breakthrough in the oil and gas industry, helping to unify the management of all business activities in the field of exploration and exploitation in Vietnam and overseas.

Inheriting achievements and promoting the creative tradition of the predecessors, after successfully transforming the model of management from dependent accounting to independent accounting, PVEP has drastically deployed breakthrough solutions to implement its growth strategy with the aim of becoming the leading oil and gas company in the region.

During the 2007-2017 period, PVEP’s total production in whole oilfields reached 146.3 million tonnes of oil equivalent. Of which, total production of PVEP alone reached 56.3 million tonnes of oil equivalent (39.62 million tonnes of oil and 16.63 billion cu.m of gas). The corporation reached total revenues of more than VND468 trillion and paid more than VND146 trillion to the state budget. PVEP’s total assets were put at over VND134 trillion by the end of 2017.

Over the past 30 years, PVEP has marked its development with excellent completion of trade and production activities, significant contributions to ensuring national energy security. PVEP has always recorded strong growth since its establishment, with increased productivity and scale.

PVEP’s staff and technical workers have step by step mastered science and technology. Despite fiercer competition

from domestic and foreign rivals, PVEP has always confirmed its pioneering position in oil and gas exploration and

exploitation.

Kim Ngan