PV Drilling to expand markets abroad

The PetroVietnam Drilling and Well Services Corporation (PV Drilling) plans to expand its coverage in rig and drilling related services provision, to Myanmar, Malaysia and the Middle East, according to General Director Pham Tien Dung.

The plan is part of the firm’s efforts to overcome its current difficult period and grasp future opportunities in these markets, said Dung, adding that PV Drilling is also taking measures to cut costs, especially in unused rigs.

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The firm is also seeking measures to make the full use of its equipment to provide new services in the areas of exploring and exploiting oil and gas, he said.

At the same time, PV Drilling will also streamline its organization and improve its management efficiency.

According to the PV Drilling official, PetroVietnam plans to drill new oil wells in 2016, to reach its target of exploiting 1 million tons of crude oil more than the goal assigned by the Government. This is considered a chance for PV Drilling to become busier.

A financial report by PV Drilling for the second quarter of this year reveals that the total revenue of the firm was only VND 1.77 trillion, a decrease of 53.5 percent over the same period last year, with the highest drop being in drilling and well technique services.

Meanwhile, its after-tax profits reached more than VND 34.2 billion, a plunge of 94 percent over the same quater in 2015.

PV Drilling leaders attribute the situation to the global plummeting oil prices. On average, only 2.7 of the firm’s rigs were operational in the second quarter of this year, much lower than the average five rigs in operation for the same period last year, with rig rentals down by 35-40 percent. In the second quarter, the active rigs it was leasing decreased to one, from three the year before.

PV Drilling’s service portfolio includes oil rigs, rig and well technology and human resources supply in the areas of oil drilling and oil well operation, both offshore and inland.