PVOIL and PV GAS sign a cooperation contract for 2021-2025 period

21.01.2021

00:00/00:00

On January 20th, 2021, at its headquarter, PetroVietnam Gas Joint Stock Corporation (PV GAS) signed a five-year contract with PetroVietnam Oil Corporation (PVOIL) for business cooperation through 2025.

The signing ceremony was witnessed by Mr. Dinh Van Son, member of PetroVietnam’s Board of Directors, PetroVietnam’s Deputy General Director Le Xuan Huyen, and representatives of the Group's professional departments.

On the PV GAS side, Mr. Nguyen Sinh Khang, Chairman of the Board of Directors, Mr. Duong Manh Son, General Director, members of the Board of Management, Board of Directors, and representatives of PV GAS divisions and units attended the ceremony.

From PVOIL side, the ceremony received attendance of Mr. Cao Hoai Duong, Chairman of the Board of Management, Mr. Doan Van Nhuom, President & CEO, members of the Board of Directors and Board of Management, and representatives of divisions and units of PVOIL.

The signing ceremony, an important event of the two PetroVietnam units, gets in line with the Group’s policy on building a closed production chain, from raw materials – production - distribution of petroleum products thanks to cooperation between affiliates in the Group.

PV GAS is the only member unit of the Group allowed to produce and trade condensate, while PVOIL is the only Group’s unit allowed to produce and trade petroleum. Under the approval of PetroVietnam, PV GAS will provide PVOIL condensate for processing RON91 gasoline and semi-finished products for the market.

Under the cooperation which will last for 5 years, between 2021 and 2025, PV GAS will supply condensate and PVOIL will manufacture, process and sell petroleum products. The cooperation will be done based on mutual benefit basis, increasing the value of the condensate production and processing chain, in line with the condensate production situation of PV GAS in the 2021-2025 period and the PVOIL's business model.

PV GAS and PVOIL have been in cooperation in petroleum production for more than 10 years under various forms. With the new contract, PV GAS and PVOIL will continue a new cooperation journey for better innovation, mutual benefit, enhancing competitiveness and brand recognition of the units.

This is an important milestone in the strategic cooperation relationship between the two corporations, helping to strengthen the comprehensive and long-term cooperation in the entire production for the development of the two units and the development of PetroVietnam as well.

Speaking at the signing ceremony, leaders of PV GAS and PVOIL committed to implement the business cooperation with aim of bringing the highest efficiency, benefits to both sides.

Mr. Duong Manh Son, Secretary of the Party Committee, General Director of PV GAS affirmed: “The cooperation enables two corporations jointly implement the PetroVietnam’s policy on building a closed petroleum production chain from raw material to distribution.”

“The cooperation is built on the principle of mutual benefit and increasing the value of the Condensate production and processing chain. It gets in line with the condensate production situation of PV GAS in the period 2021-2025 and with PVOIL's business model. PV GAS hopes the cooperation will create cohesion and opportunities for the two corporations to promote and expand the cooperative relationship in other fields,” he added.

Mr. Duong Manh Son – General Director of PV GAS speaks at the signing ceremony

PVOIL President & CEO Doan Van Nhuom thanked PV GAS leaders for the enthusiastic and active cooperation. He recognized the quick and effective coordination between the two units for the business cooperation contract.

PVOIL and PV GAS succeeded in cooperating producing A83 gasoline in the past years. This new cooperation aims at producing PVOIL - PV GAS branded gasoline meeting technical requirements and optimizing production capacity and increase product value for both units.

The cooperation realize PetroVietnam’s instruction on building a closed production chain between the Group's member units. At the same time, this contract also opens up opportunities for cooperation for the two units in the near future.

PVOIL President & CEO Doan Van Nhuom speaks at the signing ceremony

The cooperation realize PetroVietnam’s instruction on building a closed production chain between the Group's member units. At the same time, this contract also opens up opportunities for cooperation for the two units in the near future.

The units’ leaders thanked the Group's leadership for instruction, support for the cooperation and the development of member corporations in general.

Deputy General Director of Petrovietnam Le Xuan Huyen congratulated the two units for involving in the business cooperation. He highly appreciated the cooperation spirit of PV GAS and PVOIL for the common goal of the Group.

“PetroVietnam praised the two member units for being responsible, professional, and efficient in proceeding cooperation and signing the contract. This is a remarkable event of the Group in the new year of 2021, opening a pioneer direction of two typical corporations of the Group. I hope the two unit members are determined to overcome challenges, contribute to honor and develop brand development as well as of PetroVietnam.”

“To ensure the success of this cooperation, the Group requests capital representatives in the units to implement the next steps to achieve business efficiency, safety and environment protection complying with applicable regulations. The Group will support and create conditions for PV GAS and PVOIL to maximize the potentials and strengths in the cooperation which is expected to improve the value chain of Vietnam Oil and Gas Group.”

PetroVietnam’s vice CEO Le Xuan Huyen speak at the event