A worker of PetroVietnam Technical Services Corporation (PVS) at a construction site. — Photo courtesy of ptsc.com.vn

HÀ NỘI — With extensive experience in offshore oil and gas projects, PetroVietnam Technical Services Corporation (PVS) is well-positioned to excel in bidding for complex offshore wind projects that demand high levels of technical expertise, according to experts.

Vietcombank Securities Company (VCBS) expected that PVS is likely to secure a contract worth over US$100 million for the construction of the central processing platform and related facilities at the Lạc Đà Vàng oil field.

In early November 2023, the US-based Murphy Oil Corporation made the Final Investment Decision (FID) for the Lạc Đà Vàng oil field project in Việt Nam, with a size of $693 million and the goal of achieving first oil from the field in 2026.

Furthermore, the joint venture of PVS has also officially won a contract worth over $1 billion for the Lot B - Ô Môn gas power project. The FID for the entire Lot B - O Mon project is expected to be made in the first half of 2024.

According to VCBS estimates, in the first half of 2024, PVS will undertake construction work for the Lot B project, with a contract value of approximately $100 million. In case the FID for the entire Lot B - Ô Môn project is approved in 2024, the joint venture of PVS will further accelerate construction activities in the latter part of 2024.

The offshore construction sector continues to be a key business area of PVS.

In the first nine months of this year, PVS recorded a revenue of VNĐ12.6 trillion ($519 million) and a net profit of nearly VNĐ606.2 billion, up 13.6 per cent and 33.6 per cent, respectively, year-on-year.

As a result, the company has achieved 95 per cent of its revenue target and 108 per cent of its profit target for the whole year.

The mechanical and construction services (M&C) segment contributed significantly to the impressive growth. In the first nine months, the segment alone generated a revenue of more than VNĐ7 trillion, 30 per cent over last year, as PVS actively participated in offshore renewable energy projects.

Despite relatively low gross profit margins ranging from 1.6-2 per cent due to rising raw material prices and competitiveness in biddings, the M&C segment is still regarded as a strategic activity by the company.

Particularly, it is focused on offshore construction projects, traditional oil and gas facilities and continues to actively bid for offshore wind projects.

Until now, PVS has secured contracts to participate in offshore wind projects with a total capacity of over 10 GW. In May, for example, PVS signed a contract for the manufacture and construction of 33 wind turbine structural support for an offshore wind project in Taiwan (China) with a total capacity of 920 MW, which was led by Ørsted Taiwan Ltd.

The contract value for this package is approximately $320 million.

Additionally, it signed a contract for the construction of two substations valued at over US$100 million for Ørsted Taiwan Ltd.

Currently, PVS continues to participate in the bidding for offshore wind packages in Taiwan, Japan and Europe. The company also directly benefits from Việt Nam's National Power Development Plan 8, which aims to develop approximately 6 GW of offshore wind power in Việt Nam by 2030.

To seize opportunities in the wind power sector, the company has recently invested in six new plants with advanced technology for wind turbine foundation construction, surpassing its regional competitors.

In August, PVS was granted a licence to conduct offshore geological surveys in Việt Nam, in preparation for a 2.3 GW offshore wind project aimed at exporting electricity to Singapore.

On the stock market, shares of PVS closed Tuesday at VNĐ37,200 a share, an increase of 0.27 per cent. — VNS