Who to buy BP assets in Vietnam

The  properties of BP corporation in Vietnam are worth $1.3 billion – said the BP’s representative in Vietnam. BP plans to sell its shares in Vietnam and Pakistan to obtain USD $10 billion to solve the problems of oil spill  in Mexico Gulf.

At Lan Tay and Lan Do Oil Field in Vietnam, BP holds 35 percent of total capital, while India’s National Oil and Natural Gas Corporation (ONGC) has 45 percent and the Vietnam National Oil and Gas Group (PetroVietnam) owns 20 percent.

In Nam Con Son pipeline project,  BP has 32.67 percent of stakes, PetroVietnam 51 percent of shares, while the remaining are held by the US Conoco Phillips.

As for Phu My 3 thermo-power plant, investors include BP, Singaporean SembCorp and Japanese Kyushu Electric Power – Nissho Iwai. Each holds one third stakes in the plant.

After the announcement that BP plans to sell its assets in Vietnam, many wondered if Petro Vietnam intended to buy them. Petro Vietnam is the most powerful financial group in Vietnam.

According to international press agencies, so far, only ONGC expressed its interest in buying BP’s properties in Vietnam. ONGC now holds the biggest proportion of stakes in the project at 45 percent. Other oil and gas groups in Thailand and China have also voiced interest in purchasing these assets.

“BP must discuss the deal with the Government of Vietnam, and the stakes transfer will only be carried out under conditions set by the Government”  said Le Dang Doanh an Vietnam economist.

The economist also noted that it is necessary to pay attention to who wants to control energy sources in the world and also have big ambitions in the East Sea.

Under international practice, when BP sells its stakes, its partners in the projects like PetroVietnam, or Indian and US groups will have priority.

Meanwhile, a BP representative in Vietnam admitted that the group has sent a document to the Government, asking for permission to sell its properties. Only after approval from the Government, will the group announce its detailed plan.

BP began investing in Vietnam in 1989, operating mainly in the oil gas supply and power generation fields. BP is now supplying 4 billion cubic meters of gas per year, equal 24% power of Vietnam. BP and Castrol lubricant brands are two famous brands in Vietnam market. In 2009, BP signed a contract to supply crude oil for Dung Quat oil refinery Plant for 5 year.