More foreigners can now retail fuel in Vietnam?
More foreigners can now retail fuel in Vietnam?
PetroVietnam Oil Corporation (PV Oil), a member of national oil and gas group PetroVietnam, will sell a 40 per cent share in the second quarter of 2017.
PV Oil’s main operation is the retail distribution of petroleum with the second largest market share in Vietnam (22-25 per cent), only behind Vietnam National Petroleum Group (Petrolimex), which holds a 55 per cent market share, and where Japanese company JX Nippon Oil and Energy Corporation scooped up a 8 per cent stake in 2016.
PV Oil is also the only company in Vietnam to export crude oil exploited domestically and sell oil exploited by PetroVietnam in other countries.
After the equitisation, 40 per cent of the share will be sold to strategic investors. PV Oil is currently looking for investors that have good financial resources as well as experience in business management, especially in the petroleum industry, to help with business development after the equitisation.
PV Oil has already approached 30 potential investors and has officially sent requests to seven potential partners to express interest, all of whom are strong brands in the petroleum industry in Vietnam and around the world.
General director Cao Hoai Duong said the company has received interest from investors from China, the Middle East, and other Southeast Asian countries.
In Vietnam, foreign companies, such as JX Nippon, cannot join the field of fuel distribution. Exceptions are made only to companies that also invest in fuel production.
Most recently, Idemitsu Q8 Petroleum Limited Liability Company, a joint venture between Idemitsu Kosan Co., Ltd. and Kuwait Petroleum International Ltd., was allowed to set up to sell the products of Nghi Son refinery and petrochemical complex in the central province of Thanh Hoa, where both companies are investors.
A stake in PV Oil will enable a foreign investor to indirectly join in this field.
In 2016, PV Oil’s estimated consolidated revenue was $1.5 billion. The revenue of the parent company was nearly $1.1 billion. The company’s consolidated profit in 2016 was $23.3 million. The parent company’s profit was $15 million.
