PetroVietnam Drilling and Well Services Corporation (PV Drilling) is a member of the State-run Vietnam National Oil and Gas Group (PetroVietnam). Founded in 2001 with more than 100 employees at first, PV Drilling now has nearly 2,000 employees and total assets of nearly US$1 billion plus a system of world-class machinery and equipment. During more than 10 years of construction and development, all officials, engineers and workers have worked to provide the best drilling technical services and generate added values for customers, with top-quality services at competitive prices. In an interview with the Vietnam Business Forum, PV Drilling General Director Pham Tien Dung said with pride “The success of PV Drilling is the crystallisation and shining of Vietnamese bravery and wisdom on the integration path, thus making the PetroVietnam brand name more well-known on the international stage." Anh Dao reports.
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Last year, despite economic slowdown, PV Drilling still managed to make remarkable success. Could you tell us about it?
In 2012, economic slowdown caused considerable impacts on investment activities of enterprises in general and PV Drilling in particular. However, rising demand in the midst of under-supply revitalised the drilling market in the second half of 2012. Contractors were more optimistic about global energy demand and boldly restarted detailed exploration projects. This led to an increasing demand for drilling rigs in the world when the supply was short. In that context, PV Drilling found it hard to acquire more drilling rigs to meet the demand in the first six months and the operation of the first deepwater PV Drilling V - TAD rig (Semi-submersible Self-erecting Tender Assist Drilling Rig) also met with technical faults plus very bad weather conditions at that time.
However, with the efforts of rig operators, on February 14, 2012, PV Drilling successfully put the tender assist drilling (TAD) rig into operation. In addition to maintaining high performance of PV DRILLING I, II, III and V platforms, we accelerated manpower supply, equipment rent, and tubular services while supplemented new services to offset the market shrinkage. Besides, with partner-seeking endeavours, PV Drilling hired more rigs at the end of the year and earned more revenue for 2013.
In 2012, PV Drilling maintained high growth while revenue and net profit (of the parent company) reached VND11,929 billion and VND1,322 billion respectively, up 29.5 per cent and 23.9 per cent over 2011. The impressive growth came from the effective operation of the TAD rig.
Together with business investment, PV Drilling focused on risk management, safety and efficiency. At the end of the year, the corporation achieved 6 million safe working hours.
In addition, 2012 witnessed PV Drilling’s outstanding performance. The TAD rig was certified with high-tech applications by the Ministry of Science and Technology, and PV Drilling was given the "Best Drilling Contractor in Asia 2012" Award by the well-established World Finance Magazine. These events improved the image and name of PV Drilling - a trusted, confident drilling contractor in and beyond.
What factors are behind PV Drilling’s current brand?
PV Drilling’s strengths are the synergy of a number of factors but the core revolves on three interactive factors: Right investment and development strategy - Qualified, dynamic, professional and enthusiastic staff - Effective governance system.
Since its inception, PV Drilling has focused on a path: Developing drilling rig services and well drilling technical services. Strength-focused strategy has maximised profits and supported the corporation while withstanding external pressure arising from economic downturn.
Besides, the pride of PV Drilling rests in enthusiastic, qualified, professional managers and technicians, and high-level drilling specialists. This elite force is not only the strength but also the foundation for PV Drilling’s current robust development. Therefore, strengthening and developing human resources is a strong long-term strategic direction PV Drilling specifically focuses on. Annually, PV Drilling spends considerable funds on personnel training to keep and develop human resources.
In addition, PV Drilling's current success is rooted in the faith of the Board of Directors in clear decentralisation of power. The effective management system plays a key role in maintaining sustainable growth of the corporation. PV Drilling has improved the effective risk management system by applying innovative software such as ERP, HSEQ and MAXIMO in order to identify, assess and prevent risks in the fastest and most effective manner in both finance and safety in business activities.
PV Drilling is known to undertake large-scale and sophisticated projects. These projects are compared to the “fire” to test the quality of “gold” of PV Drilling brand name. Would you be kind enough to provide some information about some of these projects?
In 2005, we boldly pioneered to embark on rig investment projects and provide jack-up rig services. In 2007, PV DRILLING I rig was completed to become the first wholly Vietnamese-invested jack-up rig till that time. This milestone marked the presence of a young drilling contractor in . This was also the starting point and foundation for today's development of PV Drilling. As of March 10, 2013, PV DRILLING I officially set a record for running six straight years free from LTI (Lost Time Incident).
Following the success of the PV DRILLING I rig, in late 2007, PV Drilling completed the fabrication of PV Drilling II onshore rig and carried to in Africa . At the end of 2009, PV Drilling completed PV DRILLING II and PV DRILLING III rigs, while world financial crisis worsened and widened. At that time, it was extremely hard for the corporation to raise funds from the country, but PV Drilling persistently sought foreign loans for these two projects.
Since late 2011 and early 2012, PV Drilling successfully invested a semi-submersible tender assist (TAD) rig project. This was the most advanced deepwater rig. TAD was certified for application of high-tech by the Ministry of Science and Technology. This achievement inspired innovative projects for the corporation and created the foundation to make strong investments.
Continuing the sustainable development path of the corporation and promoting its pioneer role in the Vietnamese oil and gas drilling industry, in the near term, PV Drilling will invest a new first-generation jack-up rig to grasp opportunities in the context of increased rig rental rates and meet the growing demand of oil contractors in Vietnam, the region and the world. Besides, PV Drilling will pay attention to increasing competitiveness and expanding the domestic market, aiming to hold 70 per cent of the domestic market by 2015. At the same time, the corporation will concentrate on developing drilling services and well services in foreign markets by forming representative offices in and PV Drilling Overseas Joint Venture Company with FEG Singapore Company, laying the first step for PV Drilling to reach out to foreign markets in 2013 and accelerate growth for PV Drilling in 2014.
You have worked in the oil and gas industry for a long time. Would you mind sharing something with readers?
I started working in the oil and gas industry in 1992 and worked with some units that formed PV Drilling later from 1997. I directly built some PV Drilling member units today like PVD Offshore and PVD Drilling Division - two core units of the corporation.
I have been the PVD Drilling CEO for three years. I feel very happy to work in a very professional, dynamic, open, creative, responsible and trustful organisation. PV Drilling is not only a pioneer in the Vietnamese oil and gas drilling industry, but also the only driller in . I gave up working for big foreign companies to work for PV Drilling because of national pride and confidence in Vietnamese skills and intelligence on the international arena.
I still remember when former CEO Dr Do Van Khanh and I stood in front of a blank green field (now a mechanical workshop belonging to PVD Offshore) and dreamt. Now, I am standing side by side with my colleagues to build PV Drilling into a powerful business as today. I myself will certainly do my best to lead PV Drilling to a new level of development, expand drilling market share in the country and the region, and train more senior Vietnamese personnel for the corporation. I believe I can lead PV Drilling to conquer new heights.
Attending this forum, what message would you like to send to your partners and customers, particularly those from Singapore?
In the Vietnamese market, PV Drilling means professionalism, reputation and innovation. Besides, PV Drilling is quite familiar with ’s culture and business environment because the company has had many partners and customers here for many years. Especially, PV DRILLING I, II, III and V fields are fabricated in by Keppel Fels contractor. Recently, we signed a joint venture agreement on establishment of PV Drilling Overseas in to cooperate with FEG Company of to invest and operate jack-up rigs, provide services for oil and gas contractors in the Southeast Asian region, the Gulf of Mexico and the Middle East . Currently, jack-up rig CJ-46 is being built and is expected to be completed and put into operation in late 2013.
In the coming time, PV Drilling will continue to consider additional investment in more rigs to meet the increasing demand in Vietnamese and regional markets. Our long relationships and cultural similarities as well as market potentials will be very good premises for our cooperation and investment opportunities with partners in this country. With the spirit of "Reaching out to the world - building up the future", PV Drilling looks forward to collaborating and working with Singaporean partners on "win-win" principles, for mutual benefit and with mutual respect.
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