After 23 years of establishment and development, Petrovietnam Drilling & Well Service Corporation (PV Drilling) has not only pioneered the realization of the policy to build and develop specialized oil and gas well technical services in the domestic market but has also successfully expanded into international ocean. Notably, its offshore and onshore rigs have established a reputation and positioned the company as a leading drilling contractor in Southeast Asia and North Africa. Currently, its offshore rigs continue to conquer greater milestones in a new growth cycle.
From the realization of the oil and gas industry’s major policy
Established 23 years ago by taking over assets from Petrovietnam Technical Services Corporation (PTSC Offshore), PV Drilling was founded to realize Vietnam Oil and Gas Group (PVN)'s policy of building and developing specialized oil and gas well technical services, thereby taking a proactive role in drilling and well technical services in the Vietnamese market.
Over the past 23 years, PV Drilling has achieved remarkable success beyond initial expectations, not only capturing a significant share of the domestic drilling and well services market but also successfully penetrating highly competitive markets in the region such as Malaysia, Brunei, Indonesia… AS a result, its jack-up rigs have established a strong reputation in these markets and are now targeting even larger ones.
Looking back at the milestones achieved in its 23-year journey, we can see PV Drilling’s pioneering steps in implementing its long-term development strategy.
PV Drilling pioneers in realizing the policy of building and developing specialized oil and gas technical services
Strategic investment
In three consecutive years, between 2008 to 2010, PV Drilling undertook a series of investment activities to enhance its competitiveness and service development. In addition to constructing new jack-up rigs PV DRILLING II and PV DRILLING III, and the semi-submersible tender assisted drilling rig (TAD) – PV DRILLING V, considered one of the eight newest generation TAD rigs globally and the first high-tech drilling rig in Vietnam, PV Drilling also focused on investing in machinery and equipment for well technical services. Furthermore, the company cooperated with renowned foreign partners to establish joint ventures such as PVD-Expro, PVD Tubulars Management, and PVD Baker Hughes, aiming to develop advanced technical services, along with a goal of technology transfer, and enhancing competitiveness through international cooperation.
TAD rig - PV DRILLING V and jack-up rigs PV DRILLING I, PV DRILLING II, PV DRILLING III
Breakthrough
The 2012 – 2015 time can be considered PV Drilling’s most successful period as the company received World Finance’s “Asia’s Best Oil and Gas Drilling Contractor” award for the first time in the years 2012, 2013, and 2015, as well as the “Most Admired ASEAN Enterprise” award for its remarkable growth as a large-scale enterprise. Notably, 2014 was a peak year in PV Drilling's history, with total assets surpassing 1 billion USD. Financial indicators in 2014 also showed exceptional growth, with revenue reaching 20,884 billion VND and after-tax profit reaching 2,419 billion VND, marking the most impressive business results in the past five years. The company continued to expand its operations and scope through joint ventures such as Vietubes and PVD Tech – OSI established in 2012, and the commissioning of the PV DRILLING VI rig in 2015 by PVD Overseas joint venture, which is considered the most modern and technologically advanced jack-up rig in its class.
The jack-up PV DRILLING VI
Overcoming adversities to succeed
Since 2016, the oil and gas industry has faced a double crisis due to the sharp decline in oil prices and the COVID-19 pandemic, leading many drilling companies to face difficulties and even bankruptcy. PV Drilling has flexibly implemented a series of solutions, with a particular focus on expanding its business into international markets amidst a domestic market with limited work opportunities. The establishment of PVD overseas project management offices in Myanmar (2016), Malaysia and Thailand (2017), Brunei (2020), and Indonesia (2022) has opened up opportunities for the Corporation to penetrate deeper and develop the supply of drilling and well services in regional drilling markets. As a result, by the end of 2017, 4 out of 6 of PV Drilling's owned rigs were operating in foreign markets, and currently, all 6 of its rigs are operating overseas.
PV Drilling's journey to expand into the regional market was not easy and without its challenges, particularly in countries with strict protectionist policies such as Malaysia, Brunei, and Indonesia. Significant difficulties included transportation costs, personnel deployment, and compliance with local regulations, especially tax laws. With a pioneering spirit and professionalism, PV Drilling overcame these challenges, successfully penetrating the markets of these countries and completing drilling campaigns safely with an operational efficiency of over 95%, receiving numerous letters of commendation and prestigious awards from clients and reputable organizations. During this period, PV Drilling focused on maintaining stable business activities, ensuring safe service quality and high operating efficiency, winning important contracts, and increasing its reputation on the market. At the same time, the Corporation also emphasized the development of human resources, localizing Vietnamese engineers to play key roles on drilling rigs, enhancing cost savings, and improving corporate governance.
PV Drilling received two prestigious awards at the 2024 APEA Awards Ceremony
Looking back, it is evident that PV Drilling overcame the double crisis due to a combination of factors, including the Corporation’s unwavering commitment to its development strategy, the ownership of modern drilling rigs and equipment, a professional workforce, mastery of technology, and a continuously improving governance system. In international markets, PV Drilling consistently adheres to local laws, utilizes local services, and creates jobs for the local workforce, simultaneously promoting its brand, meeting the requirements of host countries, and reducing operating costs. Additionally, the Corporation has always focused on innovation, applying advanced technology in oil and gas drilling services to minimize environmental impact, enhance operational efficiency and customer value, while fostering a safe, creative work environment and promoting corporate culture and core values. These factors have contributed to the company's growing reputation and position as a leading drilling contractor both domestically and internationally, with a focus on sustainable development.
Over the past 23 years, PV Drilling has achieved numerous accolades and prestigious awards from both domestic and international organizations. Notably, these include awards for HSSE and consecutive years of Zero LTI, as well as annual awards for Corporate Governance and Annual Reports. Recently, the "Best Workplace in Asia" award and the "2024 Corporate Excellence Award" award have underscored the relentless efforts of the entire company, under the outstanding leadership of the company’s Leadership, in building and developing the business.
A new growth cycle
2024 marked a significant milestone in PV Drilling's new growth cycle as the company completed its financial targets three months ahead of schedule. To meet market demand, the Corporation is also accelerating investment by purchasing new Hydraulic Workover Unit equipment, aiming to proactively strengthen its technology, equipment, and human resources to be ready to provide well servicing and well plug and abandonment services in the domestic market from 2025 and expand into the Southeast Asian market from 2026. Additionally, PVD Tech, a subsidiary of PV Drilling, has invested in expanding and operating a Workshop for repairing and maintaining electric motors and rotating equipment, contributing to enhancing PV Drilling's capabilities, as well as diversifying its service offerings.
Mr. Nguyen Xuan Cuong, Member of the Board of Directors, President & CEO of PV Drilling, and Mr. Giuseppe Falbo, Sales Director of Drillmec S.p.A. signed contract to purchase new Hydraulic Workover Unit
Currently, all of PV Drilling's offshore rigs are fully booked in the international market until the end of 2025, with some rigs contracted until 2028. Regional countries, notably Malaysia and Indonesia, continue to have a significant demand for drilling rigs, with over 14 rigs required annually. Domestically, Vietnam's drilling demand is also expected to increase to support projects such as Kinh Ngu Trang, Kinh Ngu Trang Nam, Ken Bau, Su Tu Trang, Lo B - O Mon, etc. To meet the growing demand for drilling rigs in the coming years, PV Drilling plans to acquire two additional jack-up rigs by 2026 to serve both the domestic and regional markets. As part of the Group's strategy to strengthen the value chain, PV Drilling will be well-positioned to participate in providing services for large-scale and long-term domestic drilling programs, as well as comprehensive service packages for major projects such as Ca Voi Xanh and Lo B - O Mon, upon request.
The top management of Pertamina, PV Drilling, and Jimmulya at the Signing Ceremony of the Amendment for Contract Extension in Jakarta, Indonesia, on November 19, 2024
Additionally, in Indonesia, the establishment of a joint venture with a local partner is currently being implemented by the Corporation after more than a decade of entering this market. This move aims to maximize resources, increase market share, as well as facilitate the expansion of well technical services into the Indonesian market.
Looking back on the 23-year journey, it is clear that PV Drilling's unwavering commitment to its development strategy and its core values of "People - Integrity - Professionalism," coupled with a forward-thinking mindset, effective crisis management, a spirit of dedication, innovation, and teamwork among all employees through the periods, has served as a solid foundation for the company to weather storms, restore and achieve successful growth, setting its sights on even greater milestones. This is also the driving force behind PV Drilling's continued efforts to achieve new heights in the future. With a strong foundation, strategic vision, and commitment to innovation, PV Drilling continues to solidify its position as a "Pioneering Vietnamese drilling contractor in the oil and gas industry" in this new growth cycle.
PV Drilling's PR Team.