PVChem and Schlumberger extend M-I Vietnam Joint Venture Contract till 2031

 

M-I Vietnam Drilling Fluid Co., Ltd (M-I Vietnam) is a joint venture between PVChem (51%) and SISBV (49%). During 30 years of construction and development, M-I Vietnam has always operated stably and efficiently, creating total revenue of nearly USD 800 million, profit of over USD 158 million, and a contribution of USD 104 million to the State budget. The joint venture has affirmed its prestige and brand name in providing drilling fluid and related services to the domestic and foreign oil and gas contractors in Vietnam.

Realizing the role and development potential of MI Vietnam in the Vietnamese oil and gas market, PVChem and Schlumberger consented to extend the M-I Vietnam Joint Venture Contract for another 10 years (2021 - 2031). The two sides agreed to consolidate and develop the well-recognized service of drilling fluid, and open new technical service areas as well at the same time.

 

PVChem Chairman Truong Dai Nghia said, the oil and gas services in the world and in Vietnam are increasingly competitive. Fierce competition in the fields of drilling fluids, production chemicals and well services in Vietnam recently has caused oil and gas service companies, including M-I Vietnam, to reduce their prices to the lowest while having kept the service quality, resulting in a sharp drop in profit margins. However, with Schlumberger's advanced technology and techniques combined with PVChem's market understanding and flexible policies, M-I Vietnam has a strong basis for not only holding its market share firmly but also thriving widely and developing sustainably, contributing strongly to the common development of Vietnam's oil and gas industry, PVChem Chairman believed.

Managing Director of Schlumberger East Asia Mohsin Al Hadhrami highly appreciated M-I Vietnam's performance in terms of total revenue and profit, market share, facilities, and staff qualification. He affirmed that the parties would provide best support for M-I Vietnam to grow, especially in the business areas newly added in this renewed joint venture contract.

 

Speaking at the signing ceremony, Dr. Le Xuan Huyen - Deputy General Director of the Vietnam Oil and Gas Group (PVN) - highly appreciated the results achieved by M-I Vietnam, believing in the effective partnership between PVChem and Schlumberger in the coming time. The PVN leader pointed out challenges such as the global economic downturn, the disruption of the supply chain due the prolonged Covid-19 pandemic, the trade war, etc. in addition to the harsh competition among oil and gas service providers. To overcome these challenges, M-I Vietnam and the joint venture parties should focus on exploring solutions to improve quality, optimize service capabilities, upgrade facilities and laboratories, increase the localization rate, and be more proactive in technology transfer and human resources training.