PV Drilling: Capturing Opportunities – Generating Growth

In view of the dramatic increase in the global energy growth demand and strong signs of recovery market, Petrovietnam Drilling and Well Service Corporation (PV Drilling, stock code PVD) plans to invest in new rigs and state-of-art machinery so that the Corporation can promptly capture job opportunities and continue to cross to overseas drilling markets.

STEADFASTLY PIONEERING

PV Drilling was established on 26 November, 2001 in accordance with the Decision of the Prime Minister on the strategic mission to foster the development of drilling and drilling-related services of Vietnam Oil and Gas Group and stimulate the provision of services for the oil and gas market in Vietnam. At that time, the local oil and gas industry saw an overwhelming number of foreign companies taking charge of the implementation and management of the whole service market. On offshore structures or drilling rigs, Vietnamese technical crew was present at a very scattered frequency. Additionally, due to the limited experience in the early phase engaging with oil and gas works, the local manpower could only undertake junior positions on the rigs of foreign companies.

The dream of possessing and self-operating state-of-art rigs has awakened in the heart of the Vietnam’s Government leaderships. Offshore rigs are the complex structure of helideck, accommodation, power equipment, cranes, etc. with total investment up to hundreds of millions of US dollars, which need to be approved by the national authorities.

At the meeting held by the Prime Minister, the question of whether to invest in a new rig was brought out with many conflicting ideas due to the big amount of investment; additionally, the limited experience in rig operation has contributed to the uncertainty of return on investment. In such a situation, PV Drilling was established and the first rig was invested.

The moment the Government approved on first rig investment opened a new day for PV Drilling as a new bud waited for first sunlight so that the company can prepare for a higher journey in the near future.

Capturing this opportunity, PV Drilling has exerted its best to make a dream of rig owning and operating come true. Historically important milestones in rig investment can be mentioned as below: In 2007, PV Drilling received and operated the first offshore jack up rig (JU) in Vietnam and the first land rig in Algeria; in 2009 invested and inaugurated at the same time two newly-built JU rigs; in 2011 inaugurated and operated the newly-built semi-submersible tender assist drilling rig (TAD) to develop the deep water drilling technology; in 2015 invested and received one more new JU rig.

Up to present, the rig fleet has always been considered a key money maker, largely contributed to the total revenue and profit of the Corporation. Together with the drilling service, PV Drilling has also invested in providing well technical services, high tech services and drilling-related services such as manpower training, maintenance, oil spill response, etc. The variety of service provision from traditional to high-tech has empowered our strength and created solid foundation for PV Drilling to offer bundled services to clients. Bundled service is a combination of various services provided by only one contractors to clients, which can help to reduce both operation time and cost. In reality, only a few contractors over the world have eligible capability to provide bundled services. 

STEADILY OVERCOMING ALL CHALLENGES

In the 22-year journey of operation, PV Drilling is proud to possess a team of over 2,000 elite staff, with its core values “People – Professionalism – Integrity” playing as a solid foundation to train the workforce in a modern, studious, creative manner so that the Corporation can master drilling technology, gradually broadening the variety of service provision and enhancing its competitiveness at international drilling markets.

For oil and gas enterprises both operating domestically and internationally, the period of 2015 – 2022 is extremely harsh time as it was the first time in the history when the WTI crude oil price crashed into negative territory and Brent crude oil sharply fell to 25 USD/barrel in 2020. With this bottom price, the oil and gas industry was completely turbulent while operation cost for one oil barrel even higher than its selling price.

Together with the outburst of Covid-19 pandemic over the world in the years 2020 – 2021, the oil and gas industry once again was ‘knock-out” due to the supply chain disruption and energy demand decrease. Many enterprises even those with long history of operation couldn’t survive and had to perform M&A or declare bankruptcy.

In Vietnam, drilling campaigns were conducted little by little. Operating in such a context, the strategy of “Crossing to overseas markets” which was implemented for the first time in 2007 continued to be carried out. This strategy played an important role in an effort of finding and ensuring adequate jobs for the rig fleet and the whole workforce. In addition, PV Drilling has performed well all overseas drilling campaigns with the highest level in term of safety and effectiveness, which are highly appreciated by clients.

PV Drilling currently owns 6 modern rigs.

GENERATING GROWTH

With an open mind, many crisis response solutions have been implemented synchronously, flexibly and effectively while still ensuring service quality, cost optimization and financial management. Such that, PV Drilling has gradually overcome all challenges and maintained stable business operation of 14 subsidiaries and 2,000 staff, continuing to upgrade service quality, performing all drilling campaigns effectively, bringing more added values to clients, contributing to clients’ success; in the meanwhile, enhancing our prestige in the international markets.

Up to present, PV Drilling has participated to provide drilling services in such major growth offshore drilling markets as Vietnam, Myanmar, Thailand, Cambodia, Brunei, Indonesia and Algeria. In each country, the top Vietnamese drilling contractor has left its foot stage with many impressive achievements and new records, which can be listed as setting the new record of drilling the longest oil and gas well in Malaysia; first time successfully performing 24-hour anchor handling during TAD rig moving in Brunei, first time performing slim hole drilling in Thailand, achieving the title of the best HSSE drilling contractor in Indonesia, etc.

Response to its enormous effort and the spirit of difficulty overcoming, PV Drilling‘s business performance has importantly improved and robust in 2023 with VND 400 billion in revenue, about 4 times as compared to the registered plan. For the upcoming time, with the slogan “Capturing opportunities – Generating growth”, PV Drilling will focus on the investment in new rigs and machinery in order to capture a large number of job opportunities at overseas markets under the globally increasing oil demand and obvious signs of market recovery and at the same time, enhancing the asset accumulation, meeting the expectation of shareholders and investors, upgrading the brand reputation of PV Drilling – the pioneer of Vietnam drillers at international markets.

PV Drilling currently owns a modern rig fleet with 6 state-of art onshore and offshore drilling rigs, 14 subsidiaries and 5 overseas operation offices with total asset up to VND 21,000 billion.

PV Drilling's PR Team.