PVD sees opportunities from improved crude oil prices

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PetroVietnam Drilling and Well Services Corporation (PV Drilling or PVD) has seen robust improvement in business activities when the price of crude oil increases and the oil drilling market becomes warmer.

PetroVietnam Drilling and Well Services Corporation has seen robust signs in its business activities when prices of crude oil improve. — Photo pvdrilling.com.vn

PetroVietnam Drilling and Well Services Corporation (PV Drilling or PVD) has seen robust improvement in business activities when the price of crude oil increases and the oil drilling market becomes warmer.

PVD belongs to the Vietnam Oil and Gas Group (PVN).

Following the successful operation of its Drilling Rig 1 for Total E&P Myanmar, PVD has won contracts to provide offshore drilling rigs and related technical services in regional markets, including Malaysia, Indonesia, Myanmar and Thailand.

Meanwhile, the domestic drilling market has also opened up opportunities for PVD, with PetroVietnam carrying out large oil exploration and drilling projects such as Ca Rong Do (Red Emperor), Ca Voi Xanh (Blue Whale) and Block B-O Mon.

These projects are said to have the largest gas potential in Viet Nam. Sao Vang-Dai Nguyet and other gas fields are being developed in parallel with the second phase of Sư Tử Trắng (White Lion) project to ensure sufficient gas supply for Nam Con Sơn 2 pipeline project’s second phase, an important project for PetroVietnam in the near future. PVD’s post-tax profit was VND25 billion (US$1.1 million) in the third quarter of this year, 2.5 times higher than the same period in 2016.

Notably, the company still maintained quality services for its customers with sound performance and achievement of zero Lost Time Injury for many years.

PVD Vice President Do Danh Rang said to improve competitiveness in the drilling market, the company is focusing on restructuring and enhancing financial management to reduce costs during production, particularly cutting operation costs of its oil rigs.

US benchmark West Texas Intermediate (WTI) crude is being traded at $45.7 per barrel, up 28 per cent from June. The price of London-traded Brent crude surged 35.7 per cent to surpass $64 per barrel.

Together with the recovery of oil prices, the drilling market is also enjoying upbeat signs. According to the latest report from ODS-Petrodata, a market intelligence company specialising in the upstream offshore oil and gas industry, demand for jack-up rigs in 2018 is forecast at 34, compared with 27 at the end of 2016. — VNS

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