VIETNAM OIl AND GAS INDUSTRY REPORT 2017

Content

2

Executive summary 4 3.4 The current situation 66

1. Business environment 6 4. Risks 108

1.1 Macroeconomic context 6 4.1 Risks 108

1.2 Legal barriers 12 4.2 SWOT analysis 112

1.3 Trade agreement impact 22 5. Prospect, planning and prediction 114

2. The petroleum industry in the world 26 5.1 Planning 120

2.1 Crude oil 26 5.2 Prediction 143

2.2 Fuel gas 33 6. Enterprise analysis 147

2.3 Situation of key nations in the industry 47 6.1 Enterprise introduction 147

2.4 Major companies in the industry 51 6.2 Financial analysis 161

3. The petroleum industry in Vietnam 56 Financial Statements Appendix 171

3.1 Definition and classification 56

3.2 History of development 60

3.3 Industry value chain 62

Abbreviation

BTU British Thermal Unit

IEA International Energy Agency

IGU International Gas Union

MOIT Ministry of Industry and Trade

LNG Liquefied natural gas

LPG Liquefied Petroleum Gas

3

OPEC Organization of the Petroleum Exporting Countries

PVN Vietnam Oil and Gas Group

GDVC General Department of Vietnam Customs

GSO General Statistics Office of Vietnam

VIRAC Vietnam Industry Research And Consultancy

4

• As estimated, the oil supply surged to 96.5 million barrels/day in 2017,

increasing by 0.7 million barrels/day.

• Oil prices remained fluctuant during 2017 but showed positive signals

for last months of the year.

• In 2016, the global natural gas production reached 3.552 million cubic

feet, up 0.6% compared to 2015- and was the lowest level since 2009.

• Vietnam’s oil and gas industry is at its newly-fledged stage and just

paid attention by the government recently.

• Currently, mining for export is still placed above all other activities,

making the local industry mostly depend on the world’s oil prices.

• As usual, the oil industry is divided into three groups, including

upstream, midstream and downstream.

Executive summary

Executive summary

5

• In 2017, Vietnam exploited around 13,567.3 thousand tons of oil,

down 10.8% compared to the same period.

• According to preliminary figures compiled by the General

Department of Customs, in 2017, 6.8 million tons of crude oil was

exported, up 0.6% equivalent to 2.87 billion USD - an increase of

21.8% compared to the same period in 2016.

• Vietnam’s crude oil import was estimated to reach 1,180.0 thousand,

worth $476.5 million, an increase of 171.2% in volume and 199.3% in

value compared with the same period in 2016.

• Vietnam's import turnover was expected to revenue 805.1 million

USD.

• In 2016, the oil and gas enterprises recorded negative growth rates

in terms of net sales compared to the year 2015.

• The gloomy situation is forecast to re-bounce soon.

1. Business environment

1.1 Macroeconomic context

1.2 Legal barriers

Content

6

7

• Vietnam's GDP growth is based primarily on natural resource exploitations

with its mining industry focusing on 3 principal areas: coal, oil and gas.

Source: VIRAC, GSO

Source: VIRAC, GSO



Current - price GDP and per capita GDP, 2013-2017

Thousand billion

VND

GDP growth, 2011-2017



PVN’s contribution to GDP, 2008-2015

Source: VIRAC, GSO, Vietnam Energy Association

The oil and gas industry in general and its representative PVN in

particular always play a key in the economy, making great contributions

to the national development.

Crude oil revenue to state budget, 2008-2016

Source: VIRAC, GSO, Vietnam Energy

Association

According to the General Department of Customs, there is a slight decline in crude

oil export, a remarkable strike to revenue.

8

9

• The petroleum industry brings about not only major foreign investment sources for the country but also an pivotal impetus for economic

development.

• The sector has made significant contributions to the State budget. Although the total export earnings have fallen recently, the oil and gas industry

still maintains its significance to the country’s GDP.

• According to BP’s statistics, Vietnam is ranked 20th out of 52 countries in the world having oil and gas resources.



10

Source: VIRAC, GDVC



• In 2017, Vietnam's export turnover was estimated at 214 billion

dollars, up 21.2 percent compared with the same period last year.

• In the same year, Vietnam's imports increased sharply compared

with the same period in 2016 as a result of a bounce back from

China.

• Vietnam's import-export during this period was very much reliable

on FDI.

Crude oil im-export against Vietnam’s total im-export turnover, 2010-

2017

FDI contribution to import - export, 2017e

11

Source: VIRAC, GDVC Source: VIRAC, GDVC

Source: VIRAC, GDVC

2. Vietnam's economy

2.1 Economic growth 2.1.5 Export - Import

Billion

USD

Most - imported goods, 2017

Vietnam’s main export markets, 2017

Export commodity structure, 2017



1.2 Legal barriers

Content

12


1.2 Legal barriers

13

14


1.2 Legal barriers

Group of regulations and standards for oil & gas mining and production:

• Circular No. 36/2016 / TT-BTC of the Ministry of Finance guiding the implementation of tax regulations applicable to organizations and individuals

dealing with oil and gas prospection, exploration and exploitation according to the provisions of the oil & gas law.

15

No. Mining output

Tax rate (%)

1

2

3

4

5

6

7

8

9


1.2 Legal barriers

16


1.2 Legal barriers

17

Group regulations, standards for petroleum consumption and export:


1.2 Legal barriers

18

Types of productTax rate


1.2 Legal barriers

19

Code Description Tax rate (%)

PREFERENTIAL IMPORT TARIFF APPLICABLE TO CHAPTER 97 ACCORDING TO VIETNAM’S LIST OF IMPORTED GOODS


1.2 Legal barriers

20




1.2 Legal barriers

21

Code Description Corresponding codes in section I -

annex II

Tax rate (%)

REGULATIONS ON PRODUCT CODES AND PREFERENTIAL IMPORT TARIFFS FOR CERTAIN PRODUCT GROUPS AND ITEMS




1.2 Legal barriers

2. The petroleum industry in the world

2.1 Crude oil

2.2 Fuel gas

2.3 Key nations in the industry

Content

22

23


2.1 Crude-oil - 2.1.1 Global reserves

• According to BP, the global oil reserves were estimated to at 1,706.7 billion

barrels in 2016.

• According to the Oil Gas Journal (OGJ)’s latest figures, the world’s crude oil

reserves reached 1.651 trillion barrels in 2017.

Verified oil reserves, 2016

Source: VIRAC

Billion

barrels

Top 10 countries with the largest oil reserves, 2016

Billion

barrels

Source: VIRAC

24


2.1 Crude oil - 2.1.2 Classification

Physical state Product Carbon atom quantityBoiling

temperatureUse case

Classification, characteristics and use cases

Source: VIRAC, the World energy council

Global oil rig structure by region, 2017

25

Global drilling rig quantity, 2014-2017Regarding positive price signals, the global number of drilling rigs rose

sharply to 2.110 units in 2017, up 26.35% compared to 2016.

Source: VIRAC, OPEC

Source: VIRAC, OPEC


2.1 Crude Oil - 2.1.3 Drilling rig

Oil rig

The US’s drilling rig quantity, 2015-2017

Source: VIRAC, OPEC

Oil rig

26

World oil supply, 2016-2017e


2.1 crude oil - 2.1.4 Oil supply

Million barrels/day

Source: VIRAC, OPEC

Oil supply by region 2017e

Source: VIRAC, OPEC

In the period of 2013-2016, the world oil supply remained stable, with a growing output from non-OPEC countries.

27


2.1 Crude oil - 2.1.4 Oil supply

28

OPEC countries’ crude oil output, 2013-2017

Million barrels/day

OPEC countries’ crude oil production structure, 2017-2017

Source: VIRAC, OPEC

Source: VIRAC, OPEC


2.1 Crude oil - 2.1.4 Oil supply

29

Million barrels/day2016 recorded a highest oil consumption of 96.56 million barrels a day, an

increase of 1.56 million barrels a day compared with the same period last

year.

Source: VIRAC


2.1 Crude oil - 2.1.6 Oil consumption

World oil consumption, 2013-2016

Per capita oil consumption, 2016

Source: VIRAC

Oil consumption by region, 2016

Source: VIRAC

Ton

30

In 2016, 10 largest oil consumers alone accounted for 53.9% of the global

consumption.

Source: VIRAC, OPEC


2.1 Crude oil - 2.1.6 Oil consumption

Top 10 oil consumers, 2016

Oil consumption by certain products 2006-2016

Source: VIRAC, OPEC

Million barrels/day

31

Million barrels/day

Source: VIRAC


2.1 Crude oil - 7 2.1 Oil trading

Oil trade, 2006-2016World oil trade, 2016Million tons

Source: VIRAC

32

Million barrels/day

Source: VIRAC, OPEC

Source: VIRAC, OPEC



Imported crude oil output, 2012-2016

Imported crude oil output structure, 2016

33

Million barrels/day

Global crude oil production structure by output, 2016

• Crude oil has a huge export value, accounting for about 4.3 % of

the global merchandise export.

Source: VIRAC, OPEC

Source: VIRAC, OPEC

Exported crude oil output, 2012-2016



34


2.1 Crude oil - 2.1.8 Price

World crude oil prices from 1861-2017f

Source: VIRAC

35

• Crude oil prices plunged into a steep downward trend from 114 USD per barrel in mid-2014 to below 50 USD per barrel in early 2015, and continued to

touch the lowest level for almost 13 years in early 2016.

• It was only after OPEC negotiations with member states on November 30th, 2016 to cut down 1.2 million barrels per day in the first half of 2017 that

the prices exceeded 50 USD/ barrel.



36



37




2.1 Crude oil

2.2 Fuel gas


Content

38

Gas classification

• Natural gas:

• Liquefied natural gas (LNG):

• Liquefied petroleum gas (LPG):

• Condensate gas

39


2.2 Fuel gas - 2.2.1 Gas classification

40

Top 10 countries with the largest natural gas reserves, 2016

Source: VIRAC, the World energy

council

Source: VIRAC, Rystad Energy

Thousand billion VND

The gas Industry value chain


2.2 Fuel gas - 2.2.2 Gas reserves

41

Natural gas output 1970-2016

Thousand billion

VND

Source: VIRAC


2.2 Fuel gas - 2.2.3 Production

42

Natural gas production by area, 2016

Source: VIRAC

European and Eurosia are taking the lead in natural gas output, accounting for

28% of the world total, equivalent to 1,000 thousand cubic feet.



43

Leading natural gas producers, 2016

Source: VIRAC



44

Thousand billion

VND

Natural gas consumption, 2006-2016

Source: VIRAC

Natural gas production by area, 2016

Source: VIRAC


2.2 Fuel gas - 2.2.4 Consumption

45

Top 10 largest natural gas consumers, 2016

Source: VIRAC

Per capita natural gas consumption, 2016

Source: VIRAC

Equivalent tonnes



46

Natural applications by sector, 2016

Source: VIRAC



47

Natural gas is often exported via (1) pipeline system for dry gas: low cost and fast but with inadequate and limited infrastructure (2) specialized means

of transportation.

Natural gas exports, 2015-2016Billion

cubic

feet

Source: VIRAC

Gas pipelines by region, 2017

Source: VIRAC

Km


2.2 Fuel gas - 2.2.5 Trading

48

Source: VIRAC

Top 10 oil & gas exporter via pipeline, 2016

Billion

cubic

feet

Source: VIRAC

The global gas trade, 2016



49

Source: VIRAC

, Top 10 LNG exporters, 2016Billion cubic feet



50

Source: VIRAC

Top 10 LNG importers, 2016Billion

cubic

feet

Top 10 oil & gas importers via pipeline, 2016

Billion cubic feet



51

Global natural gas movements, 2012-2017

USD/million BTU

Source: VIRAC, Indexmundi


2.2 Fuel gas


2.1 Crude oil

2.2 Fuel gas

2.3 2.4 Key nations in the industry

2.4 Major companies in the industry

Content

52

53



54

Source: VIRAC, EIA

Million barrels/day

The US’s rude oil output, 2007-8T/2017

Source: VIRAC

The US's natural gas production, 2007-8T/2017

Thousand cubic

feet/day

✓ By early 2016, the world oil price sank sharply, making a series of American companies in the industry cripple with troubles. As estimated, 1/3 oil and

gas exploration enterprises fell into bankruptcy and resorted to restructuring.



55

Million cubic

feet.

Source: VIRAC, EIA

The US’s natural gas trade balance, 2016-8T/2017Petroleum-based product export, 2016-8T/2017

Source: VIRAC, EIA

Million barrels/day



56

China’s crude oil and crude oil product net import,

6/2016 – 8/2017Million barrels/day

Source: VIRAC, OPEC



3. The petroleum industry in Vietnam

3.1 Definition and classification

3.2 History of development

3.3 Industry value chain

3.4 The current situation

Content

57



58

• Crude oil:

➢ Definition: Crude oil or mineral oil is a liquid, condensed, brown-colored or pale green substance, a mixture of organic chemicals, mainly

hydrocarbons.



59



60

3 The petroleum industry in Vietnam





Content

62



62






Content

64



64

The crude oil value chain

Exploitation Production Transportation Oil refinery

Marketing (retail

outlets,

commercial

activities)

Oilfield services

) )



65

The natural gas value

chain

Exploitation Production ProcessingTransportation

and storageLast users

Oilfield services



66

Such terms as upstream, midstream, downstream refer to main activities in the oil and gas industry.






Content

66


3.4 Current situation - 3.4.1 Upstream - seeking and exploration activities

68

Phases of oil seeking and exploration

Preparatory phase

Seeking phase

Exploration phase

Extended

exploration phase



69

Oil seeking and exploration approaches

Approach Characteristics



70




71




72

Billion

barrelsThousand

billion cubic

feet

Source: VIRAC, PVN

Mine quantity are exploited every each 5-year cycle,

1981 - 2015

Source: VIRAC, CIA

Vietnam oil and gas reserves, 2010 - 2016



73

• Vietnam petroleum industry has been dominated by the Vietnam

national oil and gas group (PVN), under the supervision of the

Ministry of industry and trade executively and operationally.

Source: VIRAC, PVN

Vietnam’s oil field location by contract

Truong Sa

basin group

Nam Con Son

basin

Hoang Sa basin

• The country’s oil potential is mainly contributed by 7 hotspots. Cuu

Long, con son, the Red River, Malay Chu, Phu Khanh tank, Paracel

Islands and Spratley Islands.



74

Oil and gas areas in Vietnam

Source: VIRAC, PVN



75

Vietnamese oil and gas exploitation enterprises, 2010-

2016

Source: VIRAC, GSO

Source: VIRAC, GSO

Labor

Oil and gas laborer quantity, 2010-2016



76

In 2017, the overall mining reach approximately 13,567.3 thousand tons,

down 10.8% compared to the same period last year.

Vietnam’s crude oil exploitation output, 2010-2017

Million

tons

Source: VIRAC, BP Global, PVN, GSO



77

Source: VIRAC, BP Global, PVN, GSO

Billion m ³

Vietnam’s natural gas exploitation output, 2010-2017

Natural gas production by mine, 2007-8T/2017

Source: VIRAC, VPI/EMC



78

Compared to 2016, 2017’s crude oil consumption was estimated at 12.96

million tons (down 15%), worth 112.94 trillion (up 5%).

Vietnam's crude oil consumption, 2010-2017

Source: VIRAC, GSO

Million

tons

Source: VIRAC, GSO

Billion m3

Vietnam’s natural gas consumption, 2010-2017

Thousand

billion VND

Thousand

billion VND



79

Vietnam's crude oil export, 2010-2017

Million

tons

Source: VIRAC, GDVC

Billion

USD



80

Source: VIRAC, GDVC

Global crude oil export structure by output, 2017

Source: VIRAC, GDVC

Average crude oil export prices by market, 2017

USD/ton

Vietnam mainly exports to the Chinese market at a fairly low price, undermining profitability and national energy security concerning the country’s

limited oil reserves.



81

Vietnam’s crude oil import, 2010 - 2017

Source: VIRAC, GDVC

Thousand

ton

Source: VIRAC, GDVC

Global crude oil import structure by output, 2017

Million

USD



82

• According to preliminary figures taken from the General Department of

customs, Vietnam’s natural gas export reached 178.2 million, an increase of

43% compared with the previous year.

Vietnam’s natural gas export, 2013-2017

Million USD

Source: VIRAC, GDVC

Top 10 largest natural gas exporters, 2017e

Source: VIRAC, GDVC

Top 10 Vietnam’s largest natural gas importers, 2017e

Source: VIRAC, GDVC

D



83

Vietnam’s natural gas import, 2010-2017

Source: VIRAC, GDVC

Source: VIRAC, GDVC

Million

USD

Source: VIRAC, GDVC

Top 10 largest natural gas exporters, 2017e Natural gas importer structure, 2017e

D

84

Oil and gas circulation


3.4 Current situation -3.4.2 Midstream

Source: VIRAC, PVN

85

Means of crude oil transportation



Source: VIRAC, PVN

Means of transportation Advantages Disadvantages

86



87



Region No. Facility Years of

operationInvestor

Operating

unitLength (km)

Design

capacity

(m3/year)

Gas resource

Gas pipelines

Source: VIRAC, EMC-VPI

88


3.4 Current situation - 3.4.3 Downstream- Oil refinery technology,

Processing procedures

Objectives of oil refinery plants

89

Processing procedures



90

• Increased distilat products capacity has made oil processing

enterprises deal with residual issues in distillation and a dramatic

downward trend in crude oil markets.

Oil refinery project distribution in Vietnam

Source: VIRAC, MOIT, PVN



91



92

Downstream segment is mainly state- controlled (except for liquefied gas retail sector).


3.4 Current situation - 3.4.3 Downstream- Petroleum types

Source: VIRAC, Globalpetroprices

Petroleum management structure

93

• Vietnam's gasoline market, as well as other markets such as fuel oil, kerosene, diesel oil and jetA1, is placed under the state’s supervision for

distribution through a chain of importing/wholesale outlets.



94




Thousand

ton

Petroleum production by type, 2009-2017

95




Gasoline consumption, 2010-6T/2017e

Million tons

96




Per capita gasoline consumption in the region as of

8/2016Litre/person/year

Source: VIRAC, EMC-VPI

Fuel demand structure, 2016

97

• Vietnam's gasoline was fluctuant in recent years, with a sharp plunge in

the period 2011-2014 due to the 2012 global economic crisis and a

bounce back in 2015-2016.



Source: VIRAC, GDVC

Petroleum production by type, 2010-2017

Million

tons

Million

USD

Gasoline export market structure, 2017

Source: VIRAC, GDVC

98



Source: VIRAC, GDVC

Petroleum import by type, 2010-2017

Million

tons

Million

USD

Source: VIRAC, GDVC

Import market structure by value, 2017

99



Domestic supply Domestic demand

No. Classification Capacity (ton) Gasoline (ton) Oil (ton) Gasoline (ton) Oil (ton)

Source: Synthesized by

VIRAC

Balance of supply and demand of gasoline market the average Vietnam from 2018 to 2022

100



Source: VIRAC, Department of

price management

Domestic petrol price movement, 2015-2017


price management

Gasoline price adjustments, 2017

Dong/liter

101




Average gasoline prices of key countries 2017

USD/liter


price management

Tax charge on every petrol litre, 2017

102



Scale of 5 leading petroleum trading units, 2017

Source: VIRAC, Petrolimex Saigon, Petrol, Thalexim, Mipec

Petrolime

xPV oil Thalexim Saigon Petrol Mipec

Market share

Capacity (m3)

Petrol

outlet

Authorized

by

Agency

Business location

Petroleum market structure

2017e

103



104



Outlet-level Total capacity (m3)

105



Petrolimex distribution

Source: Petrolimex

Petrolimex's revenue by distribution channel, 2016

106



Source: Petrolimex

Vietnam’s petroleum distribution system

107


3.4 Current situations - 3.4.3 Downstream - Liquefied petroleum gas (LPG)

Source: VIRAC, GSO

LPG production, 2009-2017

Thousand ton

108



Source: VIRAC, PV Gas

Gas production, refinement and distribution

Domestic LPG suppliers


109



Source: Synthesized by VIRAC

LPG consumption, 2009 – 2016

Thousand ton

Source: VIRAC, PVN

LPG consumption structure, 2016

110



Source: VIRAC, GDVC

Import LPG, 2009-2017

Thousand ton

Source: VIRAC, GDVC

LPG import market structure by value, 2017

Million USD

111



LPG storage house


LPG container capacity by region

112



Distribution LPG

Source: VIRAC

LPG distribution channelS



• PV Gas is currently the largest LPG distributor in Vietnam thanks to two branches: Liquefied petroleum gas facilities in the South (PGS) and in the

North (PVG).

LPG retail market, 2015


113



Liquefied oil products are chemicals made from natural gas or from intermediary materials of oil refinery plants.

114

Source: VIRAC, GSO

Types of product Input material Main product Customer



115

Source: VIRAC, GSO

• Nito compound and fertilizers occupy the largest proportion of the chemical

industry structure.

• Source materials for petrochemical products serving the domestic market

are mainly imported, especially PE and PP.

Thousand ton


Polypropylene supply and demand in Vietnam, 2010-2016e/6T

Product group structure by revenue, 2015



116

4. Risks

4.1 Risks

4.2 SWOT analysis

117

4. Risks

4.1 Risks

The oil and gas industry plays an important role in Vietnam's economy. Featured with natural resource extraction activities, the sector is strongly

influenced by political factors and natural conditions.

118

Geological risk

119

4. Risks

4.1 Risks

Legal risks

Economic risks

120

4. Risks

4.1 Risks

Pricing risks

Supply-demand risks

Cost risks

121

4. Risks

4.1 Risks

Risk of petroleum items

4. Risks

4.1 Risks

4.2 SWOT analysis

122

S WO T

123

4. Risks

4.1 SWOT analysis

5. Prospect, planning and prediction

5.1 Planning

5.2 Prediction

124


5.1 Planning

125


5.1 Planning

126

127


5.1 Planning

128

4. The sector’s directory of major investment projects.

▪ The period 2016 – 2025:

No. Pipe name Launching timeExpected capacity

(billion m3/year)Length (km) Diameter (inch)


5.1 Planning

129

▪ The period 2026 – 2035:




5.1 Planning

130

❖ The central region.

▪ The period 2016 – 2025:

No.Facility

Launching timeExpected capacity



5.1 Planning

131

▪ The period 2026 – 2035:

No. Facility Launching timeExpected capacity



5.1 Planning

132

❖ Southeast

▪ The period 2016 – 2025:




5.1 Planning

133

❖ The southeast area

❖ The period 2016 – 2025:




5.1 Planning

134

• The period 2026 – 2035:




5.1 Planning

135

❖ The southwest area.

No. Facility Launching timeExpected capacity



5.1 Planning

136

b) LNG import projects

• The period 2016 – 2025:

No. Facility Launching timeCapacity ( million

tons/year)Length (km) Diameter (inch)


5.1 Planning

137

• The period 2026 – 2035:

No. Facility Launching timeCapacity ( million

tons/year)Length (km) Diameter (inch)


5.1 Planning

138

c) LPG storage system.

• The period 2016 – 2020:

Region Province/city Location Capacity (ton) Forms of investment


5.1 Planning

139

• The period 2021- 2025:

Region Province/city Location Capacity (ton) Form


5.1 Planning

140

• The period 2026- 2035:

Region Province/city Location Capacity (ton)Forms (newly-

built/expanded)


5.1 Planning

Source: VIRAC, MOIT, PVNSource: VIRAC, MOIT,

PVN


5.1 Planning

Capital investment needs by region, 2016-2025 Capital investment needs by region, 2026-2035

141

5. Capital investment needs.

142

6. Solution:

a) Organizational management (policy mechanisms, model)

b) Investment solutions.

c) Financial and capital arrangement.

d) Market solutions.


5.1 Planning

143

e) Scientific and technological solutions.

f) Human resource development.

g) Safety, environmental and sustainable development.

h) National defense and security.


5.1 Planning

144

1. Development vision.

a2. LPG production and distribution system planning

a) LPG production system planning

The period 2014-2020:


5.1 Planning

145

❖ The period 2021-2030:

❖ The period 2021-2030:


5.1 Planning

146

❖ The period 2014-2020P:

❖ The period 2021-2030:

❖ The period 2014-2020:

❖ The period 2021-2030:


5.1 Planning


5.1 Planning

5.2 Prediction

147

148

Oil industry prospects

❖ Supply-demand


5.2 Prospect

Source: VIRAC, OPEC

Supply and demand balance, 2017-2018fMillion barrels/day

149

Tri

llio

n s

qu

are

feet

Increasing natural gas production by country,

2016-2040fTrillion square feet

Source: VIRAC, EIA

Global natural gas consumption, 2016-2040f

Source: VIRAC, EIA


5.2 Prediction

150

❖ Oil prices

❖ Domestic activities


5.2 Prospect

Target 2017 Prediction towards 2018

PVN mining plan 2018

Source: VIRAC, PVN

Tonne of oil equivalent

151

Currently, the oil and gas industry in Vietnam is comprised of

mainly young enterprises that cannot meet domestic demand.

Vietnam’s oil supply-demand forecast, 2014-2025

Vietnam’s gas supply-demand forecast, 2014-

2020

Source: VIRAC, IOP

Source: VIRAC, IOP

Million

barrels/day

Thousand ton


5.2 Prediction

152


5.2 Prediction

Gas industry prospects

❖ Domestic activities:

Currently, Vietnam’s natural gas exploitation is facing many difficulties because reserves are on the verge of exhaustion.

6. Enterprise analysis

6.1 Enterprise introduction

6.2 Financial analysis

153

154



Vietnam’s petroleum industry structure

Source: VIRAC

155



Vietnam petroleum industry is governed by the Vietnam national oil and gas group (PVN),

Key companies

Vietnam Oil and Gas Group

156



Source: VIRAC, PVN

Thousand billion

VND

PVN’s revenue, 2010-2016

157



Vietnam petroleum group.

158



Regarding petroleum aspect, Petrolimex continues its dominant role on the domestic market with approximately 50% of market share.

Source: Petrolimex

Petrolimex’s revenue, 2011-2016Thousand billion

VND

159



Other companies

PetroVietnam Drilling and Well Service Corporation

160



PetroVietnam Exploration Production Corporation Ltd.

161



PetroVietnam Gas Joint Stock Corporation

162162162



A glimpse of Binh Son Refining and Petrochemical Company Limited

163



Petrovietnam Oil Corporation

164



Ho Chi Minh City One-Member Limited Liability Oil & Gas Company

165



Vietnam Air Petrol Company Ltd

166



Dong Thap Petroleum Trading Import Export Company Limited

160



6.2 Financial analysis

168


6.1 Enterprise introduction - Profitability

Source: VIRAC

Revenue growth, 2015-2016

Thousand billion

VND

169



170



Source: VIRAC

Gross profit growth, 2015-2016Thousand billion

VND

171



Gross profit margin 2016

Source: VIRAC

Thousand billion

VND

172



Solvency capacity, 2016

Source: VIRAC

173



Turnover ratio of receivables, 2016

Source: VIRAC

174

Solvency capacity, 2016

Times

Source: VIRAC


6.1 Enterprise introduction - Solvency

175

Total asset turnover ratio, 2016

Times

Source: VIRAC

Fixed asset turnover coefficient, 2016

Source: VIRAC

Times


6.1 Enterprise introduction - Operating efficiency

176

Gross profit margin 2015

Source: VIRAC


6.1 Enterprise introduction - Profitability rate

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VIETNAM OIl AND GAS INDUSTRY REPORT 2017 · • Oil prices remained fluctuant during 2017 but...

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