Workers at the Dinh Vu Petroleum Service Port in Hai Phong city (Source: VNA) Hanoi (VNA) - Deputy Prime Minister Vuong Dinh Hue has released a list ofState-owned enterprises from which the Vietnam Oil and Gas Group (PetroVietnam)must reduce its ownership between 2017 and 2020.
By 2020, PetroVietnam must reduce its stakes in the following three companiesto at least 51 percent, including PetroVietnam Fertiliser and ChemicalsCorporation (DPM), PetroVietnam Ca Mau Fertiliser JSC (DCM) and PetroVietnamGas JSC.
More specifically, PetroVietnam must reduce its stakes in DPM and DCM to 51 percent eachfrom the current 61.3 percent and 75.5 percent, respectively, by the end of2018.
The State-owned oil and gas group must sell shares to cut its ownership fromnearly 97 percent to 65 percent in PetroVietnam Gas Joint Stock Company between2018 and 2019.
PetroVietnam must lower its share percentage in PetroVietnam TransportationCorporation to 36 percent from the current 51 percent if it successfullyreaches an agreement with CitiBank to amend the previous deal on PetroVietnam’sownership signed between the two companies.
The other three companies in which PetroVietnam must reduce its ownership to below 50 percentof charter capital are PetroVietnam Oil Corporation (PV Oil), Binh Son Refiningand Petrochemical Co Ltd (BSR) and PetroVietnam Power Corporation (PV Power).
PetroVietnam currently owns 100 percent stakes in PV Oil and BSR while itsownership of 51 percent in PV Power would end by 2019. PVN could offload itsstakes in those companies sooner if the group reaches agreements with the banksthat are its partners in those firms.
By 2018 and 2019, PetroVietnam must sell the entirety of its shares incompanies such as PetroVietnam Insurance Corporation (PVI), PetroVietnamConstruction Corporation (PVC) and PetroVietnam Maintenance and RepairCorporation.
The ownership percentages that PetroVietnam holds in these four companies are35 percent, 54.5 percent and 41 percent, respectively.
In addition, PetroVietnam will have to wait for the Prime Minister’s decisionson its divestment in PetroVietnam Petrochemical and Textile Fiber Company(PVTex) and Dung Quat Ship Building Industry Co Ltd, in which PetroVietnamholds 74 percent and 100 percent of charter capital.
The Deputy PM also asked PetroVietnam to maintain its current ownership inother subsidiaries and associate companies such as PetroVietnam TechnicalServices Corporation, the Vietnam-Russia joint venture Vietsovpetro andPetroVietnam Drilling and Well Services Corporation.
PetroVietnam’s shares in those three companies are 51.4 percent, 51 percent and50.4 percent, respectively.
PetroVietnam is also required to ensure its divestment plans in the mentionedcompanies are completed by 2020. The national oil and gas group can make itsown decisions to push the divestment progress in those companies if conditionsare good, while it should report to the Ministry of Industry and Trade on anychallenges and obstacles that occur during the divestment process.-VNA
