VIETNAM OIL AND GAS INDUSTRY REPORT 2018...• Oil prices remained fluctuant during 2018 but showed positive signals for last months of the year. • In 2016, the global natural gas

Content is intentionally removed for demo purpose

VIETNAM OIL AND GAS INDUSTRY REPORT 2018


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 2018,

increasing by 0.7 million barrels/day.

• Oil prices remained fluctuant during 2018 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 2018, 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

1.3 Trade agreement impact

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, 2013-2018

Thousand billion

VND

GDP growth, 2011-2018




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-

2018

FDI contribution to import - export, 2018e


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, 2018

Vietnam’s main export markets, 2018

Export commodity structure, 2018




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





1.2 Legal barriers


Content

22




• The ASEAN Economic Community (AEC)’s impact on the oil and gas industry

• Comprehensive Partnership and Transition Partnership Agreement (CPTPP)’s impact on the oil and gas industry

23




24


25




2. The petroleum industry in the world

2.1 Crude oil

2.2 Fuel gas

2.3 Key nations in the industry

2.4 Major companies in the industry

Content

26



27


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 2018.

Verified oil reserves, 2016

Source: VIRAC

Billion

barrels

Top 10 countries with the largest oil reserves, 2016

Billion

barrels

Source: VIRAC


28


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, 2018

29

Global drilling rig quantity, 2014-2018Regarding positive price signals, the global number of drilling rigs rose

sharply to 2.110 units in 2018, 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, 2015-2018

Source: VIRAC, OPEC

Oil rig


30

World oil supply, 2016-2018e


2.1 crude oil - 2.1.4 Oil supply

Million barrels/day

Source: VIRAC, OPEC

Oil supply by region 2018e

Source: VIRAC, OPEC

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


31


2.1 Crude oil - 2.1.4 Oil supply


32

OPEC countries’ crude oil output, 2013-2018

Million barrels/day

OPEC countries’ crude oil production structure, 2018-2018

Source: VIRAC, OPEC

Source: VIRAC, OPEC


2.1 Crude oil - 2.1.4 Oil supply


33

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


34

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


35

Million barrels/day

Source: VIRAC


2.1 Crude oil - 7 2.1 Oil trading

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

Source: VIRAC


36

Million barrels/day

Source: VIRAC, OPEC

Source: VIRAC, OPEC



Imported crude oil output, 2012-2016

Imported crude oil output structure, 2016


37

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




38


2.1 Crude oil - 2.1.8 Price

World crude oil prices from 1861-2018f

Source: VIRAC


39

• 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 2018 that

the prices exceeded 50 USD/ barrel.




40




41





2.1 Crude oil

2.2 Fuel gas



Content

42



Gas classification

• Natural gas:

• Liquefied natural gas (LNG):

• Liquefied petroleum gas (LPG):

• Condensate gas

43


2.2 Fuel gas - 2.2.1 Gas classification


44

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


45

Natural gas output 1970-2016

Thousand billion

VND

Source: VIRAC


2.2 Fuel gas - 2.2.3 Production


46

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.




47

Leading natural gas producers, 2016

Source: VIRAC




48

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


49

Top 10 largest natural gas consumers, 2016

Source: VIRAC

Per capita natural gas consumption, 2016

Source: VIRAC

Equivalent tonnes




50

Natural applications by sector, 2016

Source: VIRAC




51

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, 2018

Source: VIRAC

Km


2.2 Fuel gas - 2.2.5 Trading


52

Source: VIRAC

Top 10 oil & gas exporter via pipeline, 2016

Billion

cubic

feet

Source: VIRAC

The global gas trade, 2016




53

Source: VIRAC

, Top 10 LNG exporters, 2016Billion cubic feet




54

Source: VIRAC

Top 10 LNG importers, 2016Billion cubic feet

Top 10 oil & gas importers via pipeline, 2016

Billion cubic feet




55

Global natural gas movements, 2012-2018

USD/million BTU

Source: VIRAC, Indexmundi


2.2 Fuel gas



2.1 Crude oil

2.2 Fuel gas



Content

56


57




58

Source: VIRAC, EIA

Million barrels/day

The US’s rude oil output, 2007-8T/2018

Source: VIRAC

The US's natural gas production, 2007-8T/2018

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.




59

Million cubic

feet.

Source: VIRAC, EIA

The US’s natural gas trade balance, 2016-8T/2018Petroleum-based product export, 2016-8T/2018

Source: VIRAC, EIA

Million barrels/day




60

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

6/2016 – 8/2018Million barrels/day

Source: VIRAC, OPEC





2.1 Crude oil

2.2 Fuel gas



Content

61



62



Source: VIRAC, Forbes

Source: VIRAC, Forbes

Million barrels/day

Billion cubic feet/day

Top 10 world's largest oil producers, 2016

Top 10 world’s natural gas producers, 2016


63




64




65




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

66




67

• 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.




68




69


3 The petroleum industry in Vietnam





Content

62




71







Content

64




73

The crude oil value chain

Exploitation Production Transportation Oil refinery

Marketing (retail

outlets,

commercial

activities)

Oilfield services




74

The natural gas value

chain

Exploitation Production ProcessingTransportation

and storageLast users

Oilfield services




75

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

77

Phases of oil seeking and exploration

Preparatory phase

Seeking phase

Exploration phase

Extended

exploration phase




78

Oil seeking and exploration approaches

Approach Characteristics




79





80





81

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




82

• 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

Content is intentionally removed for demo purposeTruong 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.



83

Oil and gas areas in Vietnam

Source: VIRAC, PVN




84

Vietnamese oil and gas exploitation enterprises, 2010-

2016

Source: VIRAC, GSO

Source: VIRAC, GSO

Labor

Oil and gas laborer quantity, 2010-2016




85

In 2018, 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, 2010-2018

Million

tons

Source: VIRAC, BP Global, PVN, GSO




86

Source: VIRAC, BP Global, PVN, GSO

Billion m

³

Vietnam’s natural gas exploitation output, 2010-2018

Natural gas production by mine, 2007-8T/2018

Source: VIRAC, VPI/EMC




87

Compared to 2016, 2018’s crude oil consumption was estimated at 12.96

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

Vietnam's crude oil consumption, 2010-2018

Source: VIRAC, GSO

Million

tons

Source: VIRAC, GSO

Billion m3

Vietnam’s natural gas consumption, 2010-2018

Thousand

billion VND

Thousand

billion VND




88

Vietnam's crude oil export, 2010-2018

Million

tons

Source: VIRAC, GDVC

Billion

USD




89

Source: VIRAC, GDVC

Global crude oil export structure by output, 2018

Source: VIRAC, GDVC

Average crude oil export prices by market, 2018

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.




90

Vietnam’s crude oil import, 2010 - 2018

Source: VIRAC, GDVC

Thousand

ton

Source: VIRAC, GDVC

Global crude oil import structure by output, 2018

Million

USD




91

• 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, 2013-2018

Million USD

Source: VIRAC, GDVC

Top 10 largest natural gas exporters, 2018e

Source: VIRAC, GDVC

Top 10 Vietnam’s largest natural gas importers, 2018e

Source: VIRAC, GDVC

D




92

Vietnam’s natural gas import, 2010-2018

Source: VIRAC, GDVC

Source: VIRAC, GDVC

Million

USD

Source: VIRAC, GDVC

Top 10 largest natural gas exporters, 2018e Natural gas importer structure, 2018e


93

Oil and gas circulation


3.4 Current situation -3.4.2 Midstream

Source: VIRAC, PVN


94

Means of crude oil transportation



Source: VIRAC, PVN

Means of transportation Advantages Disadvantages


95




96



Region No. Facility

Years of

operatio

n

InvestorOperating

unitLength (km)

Design

capacity

(m3/year)

Gas resource

Gas pipelines

Source: VIRAC, EMC-VPI


97


3.4 Current situation - 3.4.3 Downstream- Oil refinery technology,

Processing procedures

Objectives of oil refinery plants


98

Processing procedures




99

• 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




100




101

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


102

• 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.




103




Thousand

ton

Petroleum production by type, 2009-2018


104




Gasoline consumption, 2010-6T/2018e

Million tons


105




Per capita gasoline consumption in the region as of

8/2016Litre/person/year

Source: VIRAC, EMC-VPI

Fuel demand structure, 2016


106

• 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, 2010-2018

Million

tons

Million

USD

Gasoline export market structure, 2018

Source: VIRAC, GDVC


107



Source: VIRAC, GDVC

Petroleum import by type, 2010-2018

Million

tons

Million

USD

Source: VIRAC, GDVC

Import market structure by value, 2018


108



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


109



Source: VIRAC, Department of

price management

Domestic petrol price movement, 2015-2018


price management

Gasoline price adjustments, 2018

Dong/liter


110




Average gasoline prices of key countries 2018

USD/liter


price management

Tax charge on every petrol litre, 2018


111



Scale of 5 leading petroleum trading units, 2018

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

2018e


112




113



Outlet-level Total capacity (m3)


114



Petrolimex distribution

Source: Petrolimex

Petrolimex's revenue by distribution channel, 2016


115



Source: Petrolimex

Vietnam’s petroleum distribution system


116


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

Source: VIRAC, GSO

LPG production, 2009-2018

Thousand ton


117



Source: VIRAC, PV Gas

Gas production, refinement and distribution

Domestic LPG suppliers



118



Source: Synthesized by VIRAC

LPG consumption, 2009 – 2016

Thousand ton

Source: VIRAC, PVN

LPG consumption structure, 2016


119



Source: VIRAC, GDVC

Import LPG, 2009-2018

Thousand ton

Source: VIRAC, GDVC

LPG import market structure by value, 2018

Million USD


120



LPG storage house


LPG container capacity by region


121



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


122




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

123


Source: VIRAC, GSO

Types of product Input material Main product Customer



124

Content is intentionally removed for demo purposeSource: 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



125


4. Risks

4.1 Risks

4.2 SWOT analysis

126


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.

127


Geological risk

128

4. Risks

4.1 Risks


Legal risks

Economic risks

129

4. Risks

4.1 Risks

Pricing risks

Supply-demand risks

Cost risks


130

4. Risks

4.1 Risks

Risk of petroleum items


4. Risks

4.1 Risks

4.2 SWOT analysis

131

Content is intentionally removed for demo purposeS WO T

132

4. Risks

4.1 SWOT analysis


5. Prospect, planning and prediction

5.1 Planning

5.2 Prediction

133



5.1 Planning

134



5.1 Planning

135


136


5.1 Planning


137

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


138

▪ The period 2026 – 2035:




5.1 Planning


139

❖ The central region.

▪ The period 2016 – 2025:

No.Facility

Launching timeExpected capacity



5.1 Planning


140

▪ The period 2026 – 2035:

No. Facility Launching timeExpected capacity



5.1 Planning


141

❖ Southeast

▪ The period 2016 – 2025:




5.1 Planning


142

❖ The southeast area

❖ The period 2016 – 2025:




5.1 Planning


143

• The period 2026 – 2035:




5.1 Planning


144

❖ The southwest area.

No. Facility Launching timeExpected capacity



5.1 Planning


145

b) LNG import projects

• The period 2016 – 2025:

No. Facility Launching timeCapacity ( million

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


5.1 Planning


146

• The period 2026 – 2035:

No. Facility Launching timeCapacity ( million

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


5.1 Planning


147

c) LPG storage system.

• The period 2016 – 2020:

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


5.1 Planning


148

• The period 2021- 2025:

Region Province/city Location Capacity (ton) Form


5.1 Planning


149

• 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

150

5. Capital investment needs.


151

6. Solution:

a) Organizational management (policy mechanisms, model)

b) Investment solutions.

c) Financial and capital arrangement.

d) Market solutions.


5.1 Planning


152

e) Scientific and technological solutions.

f) Human resource development.

g) Safety, environmental and sustainable development.

h) National defense and security.


5.1 Planning


153

1. Development vision.

a2. LPG production and distribution system planning

a) LPG production system planning

The period 2014-2020:


5.1 Planning


154

❖ The period 2021-2030:

❖ The period 2021-2030:


5.1 Planning


155

❖ 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

156


157

Oil industry prospects

❖ Supply-demand


5.2 Prospect

Source: VIRAC, OPEC

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


158

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


159

❖ Oil prices

❖ Domestic activities


5.2 Prospect

Target 2018 Prediction towards 2018

PVN mining plan 2018

Source: VIRAC, PVN

Tonne of oil equivalent


160

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


161


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

162


163



Vietnam’s petroleum industry structure

Source: VIRAC


164



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

Key companies

Vietnam Oil and Gas Group


165



Source: VIRAC, PVN

Thousand billion

VND

PVN’s revenue, 2010-2016


166



Vietnam petroleum group.


167



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


168



Other companies

PetroVietnam Drilling and Well Service Corporation


169



PetroVietnam Exploration Production Corporation Ltd.


170



PetroVietnam Gas Joint Stock Corporation


171171171



A glimpse of Binh Son Refining and Petrochemical Company Limited


172



Petrovietnam Oil Corporation


173



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


174



Vietnam Air Petrol Company Ltd


175



Dong Thap Petroleum Trading Import Export Company Limited


160



6.2 Financial analysis


177


6.1 Enterprise introduction - Profitability

Source: VIRAC

Revenue growth, 2015-2016

Thousand billion

VND


178




179



Source: VIRAC

Gross profit growth, 2015-2016Thousand billion

VND


180



Gross profit margin 2016

Source: VIRAC

Thousand billion

VND


181



Solvency capacity, 2016

Source: VIRAC


182



Turnover ratio of receivables, 2016

Source: VIRAC


183

Solvency capacity, 2016

Times

Source: VIRAC


6.1 Enterprise introduction - Solvency


184

Total asset turnover ratio, 2016

Times

Source: VIRAC

Fixed asset turnover coefficient, 2016

Source: VIRAC

Times


6.1 Enterprise introduction - Operating efficiency


185

Gross profit margin 2015

Source: VIRAC


6.1 Enterprise introduction - Profitability rate


186

7. Financial Statements Appendix


BALANCE SHEET

Unit: million 2016 2015

A. SHORT-TERM ASSETS

I. Cash and cash equivalents

II. Short-term financial investments

III. Short-term receivables

1. Inventories

2. Other current assets

B. LONG-TERM ASSETS

I. Fixed assets


TOTAL ASSETS

A. LIABILITIES

I. Short-term liabilities

II. Long-term liabilities

B. OWNER’S EQUITY

I. OWNER’S EQUITY

II. Equity surplus

III. Undistributed profit after tax

TOTAL LIABILITIES AND OWNER’S EQUITY

187

REPORT ON BUSINESS RESULTS


Net revenue from sales and services

Costs of goods sold

Gross revenues from sales and services

Financial income

Financial cost

Cost of sales

Enterprise administration expenses

Net profits from operating activities

Total net profit before tax

Profits after enterprise income tax

CASH FLOW STATEMENT


I. Cash flows from operating activities

Cash flows from operating activities

II. Cash flows from investing activities

Net cash flows from investing activities

III. Cash flows from financial activities

Net cash flows from financial activities

Net cash flows during the fiscal year

7. Appendix

Financial Statements

PetroVietnam Drilling and Well Service Corporation



BALANCE SHEET






1. Inventories


B. LONG-TERM ASSETS

I. Fixed assets


TOTAL ASSETS

A. LIABILITIES



B. OWNER’S EQUITY

I. OWNER’S EQUITY

II. Equity surplus



188




Costs of goods sold


Financial income

Financial cost

Cost of sales





CASH FLOW STATEMENT









7. Appendix


PetroVietnam Gas Joint Stock Corporation



BALANCE SHEET






1. Inventories


B. LONG-TERM ASSETS

I. Fixed assets


TOTAL ASSETS

A. LIABILITIES



B. OWNER’S EQUITY

I. OWNER’S EQUITY

II. Equity surplus



189




Costs of goods sold


Financial income

Financial cost

Cost of sales





CASH FLOW STATEMENT









Cash and cash equivalents at the beginning of fiscal year

Cash and cash equivalents at the end of fiscal year

7. Appendix


Vietnam petroleum group.



BALANCE SHEET






1. Inventories


B. LONG-TERM ASSETS

I. Fixed assets


TOTAL ASSETS

A. LIABILITIES



B. OWNER’S EQUITY

I. OWNER’S EQUITY

II. Equity surplus



190




Costs of goods sold


Financial income

Financial cost

Cost of sales





CASH FLOW STATEMENT











7. Appendix


Refinery company limited Paint



BALANCE SHEET






1. Inventories


B. LONG-TERM ASSETS

I. Fixed assets


TOTAL ASSETS

A. LIABILITIES



B. OWNER’S EQUITY

I. OWNER’S EQUITY

II. Equity surplus



191




Costs of goods sold


Financial income

Financial cost

Cost of sales





Profit after tax of parent company shareholders

The basic interest rate on stock (VND)

CASH FLOW STATEMENT











7. Appendix


Petrovietnam Oil Corporation



BALANCE SHEET


A. SHORT-TERM ASSETS 3,570,451 3,459,380




1. Inventories


B. LONG-TERM ASSETS

I. Fixed assets


TOTAL ASSETS

A. LIABILITIES



B. OWNER’S EQUITY

I. OWNER’S EQUITY

II. Equity surplus



192




Costs of goods sold


Financial income

Financial cost

Cost of sales





CASH FLOW STATEMENT











7. Appendix


Hai Vi One Member Company Limited HCM city.



BALANCE SHEET






1. Inventories


B. LONG-TERM ASSETS

I. Fixed assets


TOTAL ASSETS

A. LIABILITIES



B. OWNER’S EQUITY

I. OWNER’S EQUITY

II. Equity surplus



193




Costs of goods sold


Financial income

Financial cost

Cost of sales





CASH FLOW STATEMENT









Cash and cash equivalents at the beginning of fiscal

year


7. Appendix


Vietnam Air Petrol Company Ltd



BALANCE SHEET






1. Inventories


B. LONG-TERM ASSETS

I. Fixed assets


TOTAL ASSETS

A. LIABILITIES



B. OWNER’S EQUITY

I. OWNER’S EQUITY

II. Equity surplus



194




Costs of goods sold


Financial income

Financial cost

Cost of sales





CASH FLOW STATEMENT



Net cash flows from operating activities






7. Appendix


Dong Thap Petroleum Trading Import Export Company Limited



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Recommended use

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and projections are based on reliable sources with ultimate prudence as of the time of writing. However, due to subjective and objective reasons in terms of

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