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PetroVietnam to appoint new CEO

Released at: 12:26, 19/11/2014

PetroVietnam to appoint new CEO

A recent round of voting among government members nominated a new President and CEO, with final approval to come from the PM.

by Tran Minh

Mr. Nguyen Quoc Khanh, Deputy CEO of the State-run PetroVietnam Group, is likely to be promoted to President and CEO after winning a recent vote among government members.

A source exclusive to VET has revealed than Mr. Khanh won handsomely over three other candidates, securing over 70 per cent of the vote. The final decision is to be approved by the Prime Minister late this month or early next.

There has been no official confirmation from the national oil and gas corporation or related ministries and authorities, but a new President and CEO must be appointed soon as the position is only being temporarily held by Mr. Nguyen Xuan Son, Chairman of the Board of Directors, since the retirement of former CEO Do Van Hau on November 1.

If VET’s source is correct then neither of the two executive leaders at PetroVietnam have cut their teeth in the core business of the oil and gas industry: exploration and production. Mr. Son has a financial background while Mr. Khanh started out in the gas-power-fertilizer field.

PetroVietnam last month reported third quarter revenue of VND290.5 trillion ($13.8 billion), 10 per cent higher than targeted, while net profits reached VND36.5 trillion ($1.73 billion), 31 per cent higher than the nine-month target.

Chairman Son said that total revenue for the whole group, including affiliates and subsidiaries, stood at VND560.1 trillion ($26.5 billion), surpassing the quarterly target by 19.5 per cent and equal to 84 per cent of the it annual goal.

In the first nine months PetroVietnam’s contribution to the State budget also exceeded targets, by 24 per cent. VND125.5 trillion (nearly $6 billion) was handed over to the State budget, or 89 per cent of the goal set for the whole year, making it a little easier for the new CEO over the remainder of the year.

But his workload will be heavy in 2015, with a range of important deals in the pipeline, such as the joint exploitation of a new 140 million tonne oil field in Russia with Gazprom Neft and refinery deals with Japan’s Idemitsu Kosan and Thailand’s PTT and SCG, among others. To fulfill PetroVietnam’s development strategy, the new CEO will have to closely monitor exploration, exploitation and the development of oil and gas fields for the group.

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