The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and PetroVietnam Exploration and Production Corporation (PVEP), an affiliate of the State-run Vietnam National Oil and Gas Group (PetroVietnam), recently signed a cooperation agreement in a bid to boost mutual development cooperation.
Under the cooperation agreement, the two sides pledged to maintain long-term effective comprehensive cooperation for mutual benefit in various aspects of common interests. The Hochiminh Stock Exchange (HOSE)-listed Vietcombank is committed to providing PVEP and its affiliates with financial and banking products, as well as other related products and services like payment and guarantee; corporate finance and securities market services; foreign exchange products; retail banking products and other banking products. Based on agreement terms and conditions, the two parties will appoint representatives to joint working groups in charge of specifying cooperation contents and achieving objectives while regularly informing related cooperation contents and proposing appropriate cooperative approaches.
At the signing ceremony, Vietcombank and PVEP also signed a credit contract worth US$150 million for and oil and gas exploration project on Block 10 and 11-1 run by the latter. Accordingly, the lender provided US$125.25 million (83.5 percent of the contract’s total value).
The signing ceremony also officially marked the credit relations between Vietcombank and PVEP, and opened up new opportunities for cooperation to tap advantages and potentials of each party, thus improving competitiveness and effective development to generate more benefits for both Vietcombank and PVEP, for the business community and for the socio-economic development of the entire country.
Speaking at the signing ceremony, Vietcombank CEO Nghiem Xuan Thanh said, after 50 years of construction and development, Vietcombank is known as a transparent, standard lender with a record of safe and effective development. The development of Vietcombank has been accompanied by the close and efficient cooperation of PetroVietnam, as well as its member units, for shared opportunities. Based on the current cooperation, the future will open up huge opportunities of cooperation for the two sides to tap each other’s potentials and strengths on the basis of mutual interests and effective contribution to the country’s economic development. The signing of this credit agreement is a testament to Vietcombank’s commitment and cooperation with PetroVietnam and its member units.
PetroVietnam President Phung Dinh Thuc said this contract signing is a new development milestone of PVEP in carrying out oil and gas exploration projects in Vietnam and abroad. PVEP is an effective unit and has significant contributions to the success of PetroVietnam. The signing is a new development step of PetroVietnam and its member units with banks. This is not the first contract or a new relationship, but it has been built and formed over many years of mutual trust, cooperation and assistance for common goals. Banks, including Vietcombank, have joined with PetroVietnam in many projects. That cooperation has contributed to the overall success of PetroVietnam in the past time. In the coming time, PetroVietnam will continue to focus on five key business areas, namely oil and gas exploration and production projects in domestic and foreign countries; petrochemical refining projects; electricity; gas; and services. Hence, the demand for capital is very high. PetroVietnam, therefore, wishes to cooperate with banks. PetroVietnam pledges to focus on feasible and effective projects, he added.