Vietnam Oil and Gas Group (Petrovietnam) has acquired full interest in Chevron Corp.’s companies in Vietnam. This acquisition provides PetroVietnam the firm operatorship of two production sharing contracts (PSCs) offshore Vietnam and a huge advantage in a gas development project. PetroVietnam has also made itself one of the strongest oil and natural gas group in the region because of this important acquisition deal. This was announced by the country’s national oil company Wednesday.

PetroVietnam will take over Chevron Vietnam (Block B) Ltd., the operator of Blocks B and 48/95, this is a 42.38 percent interest in the PSC. The Vietnamese company will also be the new owner of Chevron Vietnam (Block 52) Ltd. that has a 43.4 percent operating stake in Block 52/97. This is located in the same area as Blocks B and 48/95. Chevron has found gas in the two PSCs. These are located in the Malay Basin off the coast of south western Vietnam which was more than a decade ago.

PetroVietnam will hold a 28.7 percent non-operating stake in the Block B Gas Development Project. This will ensure delivery of natural gas from Blocks B & 48/95 and Block 52/97 to existing and proposed power plants located at southern Vietnam. This is after acquiring Chevron Southwest Vietnam Pipeline Co. Ltd.

Vietnam’s NOC mentioned in a press release “Petrovietnam thanks Chevron for its efforts in discovering and proving this large gas resource.” Joint venture partners and the Vietnamese government have approved PetroVietnam’s acquisition. This acquisition took effect June 17.

Nguyen Xuan Son, Chairman of the Members’ Council of Petrovietnam, mentioned in an interview “The Block B gas project is Petrovietnam’s main oil and gas project. The project is of major significance, contributing to ensuring the energy security of the country and promoting the socio-economic development of the region.”

Nguyen Xuan Son also mentioned “Petrovietnam’s completion of the acquisition of Chevron’s assets in Vietnam will facilitate the acceleration of field development and the implementation of the component projects in order to make gas more quickly available to serve the development needs of the national economy.”

About PetroVietnam

PetroVietnam is the trading name of Vietnam Oil and Gas Group (PVN). In Vietnamese: Tập đoàn Dầu khí Quốc gia Việt Nam. PetroVietnam has become a vital resource in the industry since it was established in 1977. The company’s activities, through its various companies and wholly owned subsidiaries, covers all the operations from oil and gas exploration and production to storage, processing, transportation, distribution and services. PetroVietnam is wholly owned by the Vietnamese central government, it is responsible for all oil and gas resources in the country. It has also become its country’s largest oil producer and second-largest power producer.

About Nguyen Xuan Son

Mr. Nguyen Xuan Son is the Chairman, Chief Executive Officer and President of Vietnam Oil and Gas Corporation. He has been a prominent officer and chairman in numerous ventures and companies in the industry and serves as a Member of the Advisory Board at Providential Capital Management Limited. Mr. Son has a Bachelor of Oil Economics degree from the Soviet Union. He is an Economics Engineer and holds a BA in Economics from the Economic Department of Vietnam National University in Hanoi, Vietnam in 1984.

About Chevron Corporation

 

Chevron Corporation is an American multinational energy corporation. It is one of the successor companies of Standard Oil. Chevron is headquartered in San Ramon, California, and is active in more than 180 countries. Chevron is involved in all the aspects of the oil, gas, and geothermal energy industries, such as exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation.

As of 2014, Chevron is one of the world’s largest oil companies. Chevron ranked third in the Fortune 500 list of the top US closely held and public corporations and sixteenth on the Fortune Global 500 list of the top 500 corporations worldwide.

Chevron’s manufactures and sells products such as fuels, lubricants, additives and petrochemicals. The company’s most significant areas of operations are the west coast of North America, the U.S. Gulf Coast, Southeast Asia, South Korea, Australia and South Africa. In 2010, Chevron sold an average 3.1 million barrels per day of refined products like gasoline, diesel and jet fuel. Chevron’s alternative energy operations are all about geothermal, solar, wind, biofuel, fuel cells, and hydrogen. In the past few years, the company planned to spend at least $2 billion on research and acquisition of renewable power ventures. The company claims it is the world’s largest producer of geothermal energy. Chevron Corporation stock market evolution: http://www.marketwatch.com/investing/stock/cvx