The content of the proposal to the 2025 Extraordinary General Meeting of Shareholders of Petrolimex to approve the merger stated that Petrolimex Petroleum Services Corporation (PTC) officially came into operation from October 1, 2017 with an initial charter capital of VND300 billion, and at the same time received and managed all of Petrolimex's capital invested in transportation companies.

PTC's main business lines and activities are road petroleum transportation services and petroleum trading. PTC's organizational structure includes the parent company - PTC, 6 member companies which are transportation companies and 3 affiliated branches.

However, Petrolimex assessed that the operations of this corporation "have not met the requirements and orientations of the group". Meanwhile, costs arising from the operations of the parent company's office - PTC increased the operating costs of PTC and the business costs of the entire Petrolimex chain.

The annual profit that Petrolimex receives from PTC/Petrolimex's investment capital is still low and not commensurate with the scale of the group's investment capital.

Petrolimex
Petrolimex Petroleum Services Corporation will be merged into Vietnam National Petroleum Group. Photo: Petrolimex

With the current model of PTC, Petrolimex will have difficulty in implementing advances in information technology to fundamentally change the centralized, direct management/administration model to optimize the operation and resources of the entire system.

With the development orientation and restructuring of the group's organizational and operational model according to the Petrolimex restructuring project, the management model of transportation companies through PTC will no longer be suitable in the new period.

Therefore, the group has conducted research, developed and agreed on the content of the PTC restructuring project according to the plan to merge PTC into Petrolimex to further improve the operational efficiency, competitiveness, and transport enterprises under Petrolimex in the next phase.

After the merger of PTC into Petrolimex, the group's name remains the Vietnam National Petroleum Group, and the group's charter capital remains at nearly VND12,939 billion. In addition, the merger of PTC into Petrolimex does not change the group's legal representative or business lines.

Petrolimex emphasized that the merger of PTC into the group is to ensure compliance with the goals and orientations identified in the restructuring plan. The group continues to streamline its apparatus and restructure its operating model towards cost reduction, business efficiency improvement and ensuring optimal benefits for shareholders.

While many private oil and gas companies are struggling with losses, huge tax debts, leaders banned from leaving the country, and legal problems, the "big guy" Petrolimex recently announced impressive business results, especially in its core business of oil and gas trading.