After an initial public offering (IPO) scheduled to be launched on the Hochiminh Stock Exchange (HOSE) on January 25, PetroVietnam Oil Corporation (PV Oil) will maintain the exclusive right to export crude oil extracted by Vietnam Oil and Gas Group (PVN).


{keywords}



At a ceremony on opportunities to invest in PV Oil held in Hanoi last Friday, PVN deputy general director Nguyen Sinh Khang confirmed the information.

After the equitization, PV Oil will continue to promote its retail business due to high and stable profit.

PV Oil will offer 65% of its shares for investors, reducing State ownership to 35.1%. This means investors can participate in corporate management, so the equitization of PV Oil will attract large investors.

The corporation sets stricter conditions for strategic investors than other enterprises which have also launched the IPO. Investors will have to commit to full consumption of Dung Quat and Nghi Son fuels and not to selling the shares within 10 years.

However, PV Oil leaders are confident that the stake would be easily sold to strategic investors as the corporation specializes in both wholesale and retail operations, of which the retail sector grows well and steadily. The corporation currently holds a market share of 22% and expects to increase it to 35% in the next five years.

PV Oil general director Cao Hoai Duong said revenue from E5 bio-fuel sales is not lower than RON 92 petrol.

Moreover, after the equitization, PV Oil will acquire and merge small enterprises. Vietnam now has 14,000 petrol stations including 3,000 stations of Vietnam National Petroleum Group (Petrolimex) and PV Oil and more than 10,000 others of small fuel traders. PV Oil has plans to acquire these 10,000 gas stations in five years.

Petrolimex had earlier projected to invest over VND1 trillion (over US$44 million) in merger and acquisition (M&A) deals and build new gas stations this year.

PV Oil will promote its jet fuel sales, also known as Jet A1, as the country has only two Jet A1 suppliers under the management of Vietnam Airlines and Petrolimex.

In addition, PV Oil has plans to open convenience stores, coffee shops and fast-food restaurants at petrol stations.

SGT