| Author | Nguyen Thi Thuy Tien |
| Note | A project submitted in partial fulfillment of the requirement for the
degree of Master of Business Administration (Executive) in
International Business – Management of Technology (VN), School of Management |
| Publisher | Asian Institute of Technology |
| Abstract | Vietnam is a country located on the continental shelf in Southeast Asia with abundant
reserves of oil & gas. The reform “Doi Moi” in 1986 led to the development of several key
industries, including the oil and gas industry. Playing the role of single state-owned
monopoly, PetroVietnam (PVN) has constantly reached to overseas market in order to seek
for upstream investment opportunities. However, since the oil and gas sector itself has
constantly been faced difficulties including manpower, large capital and technology, along
with successful projects, PVN has also encountered quite a few failures. To fulfill its
mission of ensuring national energy security, PVN is demanded to increase the success
rate, decrease the failure rate and control risk. This is vital to the management of oil & gas
business in particular and oil & gas industry at large.
This thesis investigates overseas upstreaming investment in the oil and gas industry, by
studying Project SK-305 - an offshore oil & gas exploration and exploitation project
starting from 2003 to present date in Malaysia by Vietnam’s State-owned monopoly -
PetroVietnam. This research draws upon mostly the most updated data extracted from the
Corporation’s official reports and articles coupled with insight interviews with the
project’s staffs. The study covers events from the beginning inception of the project,
execution period to current status and challenges.
SK-305 projects were listed as an unsuccessful investment of PVN which resulted in the
withdrawals and unavoidable losses for all parties in this project (Petronas - Malaysia,
Pertamina - Indonesia). The main driving forces of this failure can be traced to the
objective reason, which are difficulties of oil & gas fields volume reserve forecast and the
fluctuation of the oil and gas global market price and subjective reason of weakness from
project management including: planning, scope, stakeholder and cost management. |
| Year | 2015 |
| Type | Project |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (Executive) in International Business - Management of Technology (VN/BKK)) |
| Chairperson(s) | Swierczek, Fredric W.;Huynh Trung Luong; |
| Examination Committee(s) | Betchter, Clemens ;Tritos Laosirihongthong; |
| Scholarship Donor(s) | PetroVietnam; |