Equitization of PV Power, BSR and PVOIL contributed to the state budget VND 7450 billion

On the afternoon of August 17^th 2018, in Hanoi, Vietnam Oil and Gas Group (Petro Vietnam) held a ceremony to summarize the equitization activities of three units: PetroVietnam Power Corporation (PVPower), PetroVietnam Oil Corporation (PV OIL) and Binh Son Petrochemical JSC (BSR).

Attending the ceremony were representatives of the Government Office, leaders of the Ministry of Industry and Trade and members of the Steering Committee for Equitization. On behalf of PetroVietnam, there were Mr. Tran Sy Thanh -Chairman of the Board of Directors; Mr. Nguyen Vu Truong Son - General Director of the Group, members of the Board of Management, Board of Directors, leaders of the Professional / Group Office, and leaders of PVPower, BSR and PVOIl.

At the ceremony, Mr. Dinh Van Son - members of Petrovietnam Oil and Gas Corporation reported on results of equitization of PV Power, PVOIl, and BSR.

Mr. Dinh Van Son reported on equitization in three units.

Total assets of the company are as follows: PVOIL is VND 19,309 billion; PVPower is VND 60,623 billion; BSR is VND 72,880 billion. The value of the three companies increased compared to the book value, which is the basis for determining the starting price of the initial public offering. Specifically, the starting price of PVOIl is 13,400 dong/share, PVPower is 14,400 dong/share, BSR is 14,600 dong/share.

Mr. Tran Sy Thanh praised the Steering Committee and Support Team has completed the equitization of 3 units.

The equitization plan has been built based on the production and business situation and the comments of all employees in a public and democratic manner through the Congress of workers and employees. After reviewing and receiving opinions of staffs, members of the Steering Committee for Equitization, leaders of the Group and other related ministries, the Group has completed the plan to report to the Ministry of Industry and Trade Prime Minister for approval.

On December 8, 2017, the Prime Minister issued Decision No. 1977/QD-TTg dated 08/12/2017 for approving the equitization plan of PVPower, Decision No. 1979/QD-TTg dated 08/12/2017 for approving the equitization plan of PVOIL, Decision No. 1978 / QD-TTg dated 08/12/2017 for approving the equitization plan of BSR.

The Steering Committee for Equitization has done proper preparation and working closely with other units to organize roadshows to introduce opportunities and answer questions about the potential when investing in stocks of the businesses in the petroleum industry. As a result, the initial public offering of shares was successful, earning a surplus of VND7450 billion to the State.

Mr. Nguyen Vu Truong Son - General Director awarded certificates of merit to the units are completing excellent equitization.

Shares of the three companies were traded on the Upcom stock exchange (BSR shares sold on March 1^st 2018, PVPower shares sold on March 6^th 2018, PVOIl shares sold on March 7^th 2018), just over two months after the initial public offering (IPO).

Besides, the offering of shares to strategic investors has been implemented urgently. Based on the criteria for selection of strategic investors approved by the Prime Minister, Petrovietnam has instructed units to provide information, introduce investment opportunities, and consider registration documents, negotiate and complete the relevant procedures to sell shares to strategic investors as soon as possible. The shares of all three units have received the attention of strategic investors. Particularly for PVOIL, the number of investors eligible to buy stocks has been evaluated and registered are 04 investors (SK Energy, Idemitsu, Sovico and HD Bank). The total estimated volume of registered shares of investors is 2.86 times higher than the amount offered.

Mr. Tran Sy Thanh - Chairman of PetroVietnam delivered a speech at the closing ceremony.

As the offer period has expired for strategic shareholders and under the direction of Deputy Prime Minister Vuong Dinh Hue in Document No. 5030 / VPCP-DMDN dated 30/5/2018, Steering Committee has instructed CP Power, PVOIl, and BSR held the first General Meeting of Shareholders and changed to operate as a joint stock company (BSR held the first General Meeting of Shareholders on June 21, 2018, PV Power on June 26, 2018, operating as a public company. PVOIl held the first General Meeting of Shareholders on July 30, 2018, operating as a joint stock company from August 1, 2018).

Mr. Tran Sy Thanh - Member of the Party Central Committee, Chairman of the Board of PetroVietnam acknowledged and appreciated the efforts of the Steering Committee, the support team and three units have completed excellent tasks.

At the same time, he affirmed that this equitization is also an opportunity to restructure the business more compactly and effectively, especially when the oil market is increasingly competitive.

The results of the initial public offering of shares are as follows: Binh Son Refining and Petrochemical Co., Ltd (BSR):

successfully sold 241,427,969 shares (equivalent to 7.79% of chartered capital), collected VND 5,414,651,19,.200 with the average winning price is VND23,043/share. A surplus of VND 3,150 billion.

Petrovietnam Power Corporation (PVPower) successfully sold 467,802,523 shares (equivalent to 20% of chartered capital) and collected the amount of VND 6,987,288,898,480 with the average winning price of VND 14,938 / share. A surplus of about VND 2.300 billion. Vietnam Oil Corporation (PVOil) successfully sold 200,445,036 shares (equivalent to 20% of chartered capital), collected VND 4,039,964,286,800 with the average successful bid price of VND20, 155 / share.  A surplus of about VND 2.000 billion

Hien An