Vietnam’s biggest fuel wholesaler sees profits eaten up by loss-making Singapore subsidiary

The Vietnam National Petroleum Group (Petrolimex), which holds the largest market share of fuel distribution in the country with over 48 percent, has reported losses in 2014, mostly due to its loss-making subsidiary in Singapore. The state-run group suffered a VND9 billion (US$414,000) post-tax loss, though it had previously posted a pre-tax profit of VND320 billion ($14.7 million), Tran Ngoc Nam, deputy general director of Petrolimex, told Tuoi Tre (Youth) newspaper on Wednesday. Nam provided the information to Tuoi Tre one day after the fuel wholesaler held its annual general meeting, which local reporters were banned from attending. In November last year, Petrolimex said in a report to the Ministry of Industry and Trade, its state management agency, that the firm ran a VND1.4 trillion ($64.4 million) profit in the first nine months of 2014. But in a report submitted to the ministry one month later, Bui Ngoc Bao, the chairman of Petrolimex, said the company suffered a loss … [Read more...]

Meet the new face of Vietnam’s oil industry

VietNamNet Bridge – Japan's top oil refiner, JX Nippon Oil & Energy Corp, has unveiled plans to go ahead with refinery projects in Vietnam as it seeks to expand in overseas markets to offset shrinking domestic demand. JX is looking at constructing and acquiring interests in refineries and operating petrol stations throughout Vietnam, in its first major downstream oil investment outside of the East Asian island nation. Vietnam is one of the most promising locations for such ventures due to its robust economic growth outlook and openness to foreign investment, the company's president Tsutomu Sugimori has said. Japanese domestic demand has been withering and in order to shore up sales, the company has been forced to explore new opportunities outside of Japan if it is to grow and prosper, he stressed. Vietnam, with a population of about 90 million has been courting foreign direct investment in their downstream oil sectors and is the top global market in addition to … [Read more...]

Petrolimex to sell large stake to JX Nippon Oil & Energy

The Viet Nam National Petroleum Group (Petrolimex) is accelerating negotiations with its strategic Japanese investor, JX Nippon Oil and Energy, to sell 15-25 per cent of its stakes through a share issue to raise charter capital. If the share sale is completed, the State holding in the group would be reduced to about 75 per cent, said Dinh Viet Tien, chief of Petrolimex's Supervisory Board at its annual shareholders' meeting yesterday. This move is in line with the Petrolimex' equitis-ation plan approved by the Prime Minister in May, 2011, to raise its charter capital from VND10.7 trillion (US$493.1 million) to VND12.5 trillion ($576 million). The Ministry of Industry and Trade represents State ownership in Petrolimex with a 95-per-cent stake. Petrolimex signed a memorandum on strategic co-operation with JX Nippon Oil and Energy last December. The group expect collaboration with the Japanese investor, who has strong financial capacity with 37 per cent of market shares in Japan, … [Read more...]

Vietnam’s Petrolimex seeks to sell stake to JX Nippon Oil

Petrolimex, Vietnam's largest oil product importer and distributor, is seeking to sell a stake of between 15 and 25 percent to Japan's JX Nippon Oil & Energy Corp, a Petrolimex executive was quoted on Wednesday as saying. The Hanoi-based firm has been accelerating talks with the Japanese company over the sale, Dinh Viet Tien, chief of Petrolimex's Supervisory Board, was quoted by the official Vietnam News daily as saying. He gave no value for the sale. In December 2014 Petrolimex signed a memorandum of understanding with the Japanese firm, under which JX Nippon Oil & Energy would become a strategic investor in Petrolimex via a share issue, Petrolimex has said. Petrolimex Management Board will continue talks with the strategic investor over the share issue for raising its registered capital, while reducing the state ownership to below 75 percent, Petrolimex said in a separate statement issued on Tuesday. … [Read more...]

Privatisation for Integration & Development

The process of state-owned enterprise privatisation started as a pilot program in 1992 and has undergone many stages. After over 20 years of implementing the government’s policy, it has obtained basic achievements of rearranging and decreasing the number of state-owned enterprises, thereby helping these enterprises increase their capital, develop sustainably and increase turnover and profit. During the process of state-owned enterprise privatisation, no employee in these enterprises has so far been dismissed, whereas their income has relatively increased. Furthermore, they have become shareholders and receive annual dividends from their shares. Most of the state-owned enterprises have seen positive signs after equitisation with a good trade turnover, increasing by 1.9 times in average turnover, 3.2 times in average profit and 2.5 times in the state’s budget remittance. According to the improved plan on rearranging and privatising enterprises in the 2014-2015 period, … [Read more...]

Japanese oil group eyes Vietnamese petroleum retail market

VietNamNet Bridge – Japanese JX Nippon Oil & Energy is expected to enter the Vietnamese petroleum retail market, which has yet to open to foreign investors. JX Nippon Oil & Energy has signed a memorandum of understanding (MOU) with the Vietnam Petroleum Import-Export Corporation (Petrolimex) on the cooperation between the two parties. Dau Tu newspaper quoted its sources as saying that the Japanese group is interested in the Nam Van Phong petrochemistry and oil refinery project that Petrolimex has been assigned to develop, and the Vietnamese petroleum retail market. Another local newspaper last month quoted Nguyen Van Khanh, a senior executive of Petrolimex, as saying that the two parties were discussing the fact that the Japanese investor would become a major partner at the Nam Van Phong refinery project. Khanh said the negotiations were expected to finish by the end of 2014. The Nam Van Phong project, with the designed capacity of 5 million tons of crude oil a … [Read more...]

JX Nippon to partner with Petrolimex in petrochemical project

Van Nam The signing of a MOU between Petrolimex and JX Nippon Oil & Energy Corporation takes place last weekend - PHOTO: PETROLIMEX The joint venture is considered the first step of JX NOE to enter Vietnam’s fuel retail market. Tran Van Thinh, general director of Petrolimex, told the Daily on December 25 that the Government has an open policy to allow foreign companies involved in oil refinery projects in Vietnam to sell products in Vietnam. According to Thinh, the policy is expected to attract more foreign investors and will be applied to other oil refinery projects soon, including Nghi Son in the northern province of Thanh Hoa and Long Son in the southern province of Ba Ria-Vung Tau. Petrolimex will be in further talks with JX NOE over the joint development of Nam Van Phong project whose capital is estimated at US$4.2-4.5 billion. The capital contribution ratio is still under negotiation. The two companies signed a memorandum of understanding on cooperation … [Read more...]

Vietnam’s Petrolimex closes MoU with JX Nippon Oil and Energy on refinery project

Vietnam's leading oil and gas company and Japan’s top oil refiner signed last week a memorandum of understanding on a bilateral strategic cooperation, including the construction of an oil refinery in the south-central region. The Vietnam National Petroleum Group (Petrolimex) and JX Nippon Oil and Energy (JX NOE) closed the MoU in Hanoi on Friday, the Vietnamese company said on its website the same day. Under the memorandum, the two parties will speed up processes for the Tokyo-based company to become Petrolimex’s strategic partner by buying stakes in the firm. Petrolimex and JX NOE will also establish a joint venture to implement the project to build the Nam Van Phong oil refinery complex in the Van Phong economic zone in the south-central province of Khanh Hoa. The project has been approved by the Vietnamese Prime Minister under a directive signed on July 31, 2009, according to Petrolimex. Petrolimex and JX NOE have proposed several solutions to realize the … [Read more...]

Japanese oil company signs MoU with eye on refinery

JX Nippon Oil & Energy Corp, Japan's largest oil firm, was reportedly looking at the Nam Van Phong oil refining petrochemical complex project and the petrol and oil retail market. — Photo baodautu HA NOI (Biz Hub) — A memorandum of understanding was signed between JX Nippon Oil & Energy Corp and the Viet Nam National Petroleum Group (Petrolimex) late last week in Ha Noi. The agreement paved the way for co-operation between the two parties in Viet Nam's oil sector, Dau Tu (Investment) newspaper reported. JX Nippon Oil & Energy Corp, Japan's largest oil firm, was reportedly looking at the Nam Van Phong oil refining petrochemical complex project and the petrol and oil retail market. Nguyen Van Khanh, a representative from Petrolimex, was quoted by the newspaper as saying a month ago that JX Nippon Oil and Energy Corp could become a major partner of Petrolimex in the Nam Van Phong project, and that the negotiations were expected to be concluded this year. The … [Read more...]

JX Nippon Oil & Energy eyes oil refinery project in Vietnam

Japan’s leading energy firm JX Nippon Oil & Energy (JX NOE) and the Vietnam National Petroleum Group (Petrolimex) reached a strategic cooperation deal that includes the development of the Nam Van Phong petrochemical complex. Under a memorandum of understanding (MoU) inked recently, the two sides agreed to continue deploying the Nam Van Phong petrochemical complex project in line with the planning that was approved by the Prime Minister. The pair expected to establish a joint venture to invest in the project in mid-2015, Petrolimex holds the biggest fuel oil market share in Vietnam. Meanwhile, JX NOE is a leading company in fuel refinery and crude oil merchandise. The company accounts for one third of Japan’s total oil production and is the sixth largest lubricant maker in the world. The company started selling lubricant in Vietnam in 1996 and opened its representative office in Ho Chi Minh City in 2010.-VNA … [Read more...]

Vietnam pin hopes on multibillion-dollar oil projects with foreign partners

Vietnam's oil and gas sector will become the focus of the petroleum industry with many projects to be developed by oil conglomerates coming from the U.S., Russia, and Japan in the coming time. Those developments, ranging from the upgrade of the Southeast Asian country's sole oil refinery to the operation of a big gas field, are about to change the face of the local petroleum sector. On Friday, Nguyen Hoai Giang, general director of Binh Son Refining and Petrochemical Company (BSR) which manages Dung Quat Oil Refinery in the central province of Quang Ngai, told Tuoi Tre (Youth) newspaper that his firm is negotiating with Russia's Gazprom Neft about the possible expansion of that only refining facility. The Russian side has formulated many plans corresponding to the funding Gazprom Neft can provide, which ranges between US$1.5-3 billion, Giang said. The budget will enable the Russian oil and gas conglomerate to acquire a 49 percent stake in Dung Quat Oil Refinery besides … [Read more...]

Gas, condensate found off southern Viet Nam coast

The three companies are Idemitsu Oil and Gas Company Limited, JX Nippon Oil and Gas Exploration Corporation and Teikoku Oil (Con Son) Company Limited.- Illustrative image/ VNA/VNS Photo Huy Hung HA NOI (Biz Hub) - Three companies on August 20 announced the discovery of gas and condensate in the fourth well in Blocks 05-1b and 05-1c off the southern Viet Nam coast. The three companies are Idemitsu Oil and Gas Company Limited, JX Nippon Oil and Gas Exploration Corporation and Teikoku Oil (Con Son) Company Limited. Blocks 05-1b and 05-1c are located 300 kilometres southeast of HCM City. The well was spudded in February 2014. The drill stem tests (DST) were carried out in May and August, and the accumulations of gas and condensate were discovered. The discovery of gas and condensate in this exploration well follows the discovery of oil and gas accumulations in other wells drilled in Blocks 05-1b and 05-1c. A detailed reservoir evaluation will be carried out in conjunction with … [Read more...]

Japan group inaugurates lubricant oil factory in Haiphong

Japan helps businesses improve competitive edge Japanese filmmakers eager to share experience Japan to receive Vietnamese agricultural trainees He added that the company can now directly supply products to Vietnamese consumers. JX Nippon Oil & Energy is Japan's leading group in oil refinery and material oil which accounts for one-third of the country's volume and is the sixth largest lubricant oil producer in the world. In addition, it also operates in electricity, fuel gas and solar energy generators and is expanding investment in oil and gas exploration and development. The group has operated in Vietnam since 1996 and set up a representative office in Ho Chi Minh City in 2010. … [Read more...]

Dinh Vu IZ sets sights on expansion

Dinh Vu Industrial Zone in the northern port city of Haiphong is rapidly expanding to cater for rising demand from foreign investors. VIR talks with Frank Wouters, general director of Dinh Vu Industrial Zone Joint Stock Company, about the zone's latest developments. Please give us an update of the development of the second phase of Dinh Vu Industrial Zone and your firm's expansion plans in Vietnam in the coming period? Phase 2 has been in operation since the end of 2009. After three years, the land occupation rate has reached about 60 per cent. We are now at the final stage of completion of utilities and infrastructure development. Phase 2 has been launched thanks to the success of the first phase. So I believe that expansion is certainly ahead as we are confident in finding business opportunities in Vietnam. Our shareholders are committed to a long-term vision in Vietnam. In addition, Vietnam has emerged as an attractive destination for investors, so this is also good … [Read more...]

Dinh Vu Industrial Zone: Emerging As Reliable Investment Destination

Being a unique port-access industrial zone, Dinh Vu Industrial Zone has emerged as a reliable destination in the eyes of foreign investors from Japan, the US, France, Korea, and other places. Making a difference Dinh Vu Industrial Zone is initiated by Belgian investors, Rent - A - Port and IPEM, in cooperation with Haiphong People's Committee. Located in Haiphong, at a sea gateway to the Northern part of Vietnam, Dinh Vu Industrial Zone is a focus of all means of transportation: by sea, by road, by rail, by inland waterway, by air. The active general port system is just inside the industrial zone, linking Dinh Vu with all international sea ports in the world and construe as an integral part of the Dinh Vu Economic Zone Project. As a result, tenants can save transportation cost via short distance. The industrial zone is also the closest industrial area to Lach Huyen international gateway seaport of 80,000 DWT which was inaugurated in April 2013. The development of Lach Huyen port … [Read more...]

Start constructing JX Nippon Oil & Energy Vietnam plant in Dinh Vu IZ

JX Nippon Oil & Energy Vietnam Co., Ltd recently organized a ground-breaking ceremony for the lubricant blending plant in Dinh Vu Industrial Zone. JX Nippon Oil & Energy Vietnam Co., Ltd is a subsidiary of JX Nippon Oil & Energy Corporation, a leading company in lubricant and energy production in Japan and having branches in many countries globally. The corporation has started its business in Vietnam for nearly 20 years. The lubricant blending plant of JX Nippon Oil & Energy Vietnam Co., Ltd which was granted investment certificate in September 2012 will be constructed on a 4-hectare area. As scheduled, after completing construction in October 2013, the plant will start commercial operation in early 2014 with an annual productivity of 36,000 tons and use about 100 employees. The plant's products will be provided for Japanese motorcycle and automobile manufacturers in Vietnam. … [Read more...]

JX Nippon looks for the good oil

Japan-based JX Nippon Oil and Energy Corporation has started construction of its lubricant blending plant in Haiphong's Dinh Vu Industrial Zone. The four-hectare, $40 million JX Nippon Oil and Energy Vietnam Lubricant Blending project is planned to begin commercial operation in early 2014 with an annual productivity of about 40,000 tonnes. JX said it expected Vietnam to be a potential market for lubricant oil and the corporation selected Dinh Vu because of its strategic location, easy access, good transport infrastructure and tax incentives. Most importantly, JX said the industrial zone already had built its jetty and supporting pipe rack system for clients in petrochemical industry. JX Nippon Oil and Energy Corporation is the eighth Japanese investors to have developed a project in Dinh Vu Industrial Zone. So far, Dinh Vu has attracted 47 projects of with Japanese investment accounting for 50 percent of the total registered capital. In 2013, Dinh Vu Industrial Zone expect to … [Read more...]

Work starts on lubricant plant in Haiphong

Hanh Thu Receiving an investment license last September, the project covering nearly four hectares has a total investment of over US$40 million and will create jobs for some 100 people. After going into operation early next year, the project will supply products for Japanese motorcycle and auto manufacturers with an annual production capacity of around 40,000 tons. Japan-based JX Nippon Oil & Energy Corporation turns out 500,000 tons of lubricants per year and looks to raise the figure to 700,000 tons in 2015 and 900,000 tons in 2020. Dinh Vu Industrial Park has attracted 47 projects so far, with Japan's investments accounting for over 50%. … [Read more...]