The Ministry of Industry and Trade has been urged PetroVietnam to provide a report on its investment activities for the submission to the Prime Minister before October 15.
In a document sent to the ministry, Deputy Prime Minister Hoang Trung Hai said the ministry would re-evaluate necessity and efficiency PetroVietnam’s projects, including those implemented overseas, between 2006 and June 2012.
The move is aimed to help the government to have a more comprehensive assessment on the group’s operations before taking consideration of its restructuring project in 2012-2015.
PetroVietnam has been asked to submit its restructuring project to the government within September after concerns that the group’s non-core business activities have proven inefficient, with many activities showing resulting in large losses. The firm has established too many affiliates, which has caused significant difficulties in the group’s management, according to the government’s report.
Under the project, PetroVietnam will only focus on its five core business areas of oil surveying, exploration and exploitation, oil refining and petrochemistry, the gas industry, electricity and oil services, while withdrawing from particularly the securities market, real estate and hospitality industry.
To date, PetroVietnam has poured around VND5 trillion (USD238.1 million) into its non-core businesses areas. The company has proposed retaining a 20% stake in Petrovietnam Finance Joint Stock Corporation (PVFC), as well as an 18% stake in PetroVietnam Insurance Joint Stock Corporation (PVI).