Financial risk management within the petroleum industry : a case study of Petrovietnam | |
| Author | Le Quang Thang |
| Call Number | AIT RSPR no.SM-03-57 |
| Subject(s) | Risk management--Vietnam Petroleum industries and trade--Vietnam |
| Note | A research study submitted in partial fulfilment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-03-57 |
| Abstract | Vietnam Oil and Gas Corporation (Petrovietnam) is the state-owned company, its activities through its various companies and wholly owned subsidiaries now cover all operations from oil to gas exploration and production to storage, processing, transportation, distribution and services. Petrovietnam, through its activities, faces many risks and uncertainties, for instance unfavourable political events, accidents, fraud, reserves estimation, exploration chance of failure, crude oil price fluctuation; interest rate and exchange risk movement. Among them, risks regarding fluctuation of crude oil price, interest rate and exchange rate would be analyzed in the research. Derivatives, financial instruments, have proven to be useful in petroleum industry and have been used widely among oil companies. The most commonly used derivative contracts are f01ward contracts, futures contracts, options and swaps. These instruments, when used prudently can hedge those above risks. The immediate application of these financial instruments to Petrovietnam is now impossible because of existing factors like the lack of accounting system and legal framework regulating derivative transactions, the lack of knowledge regarding derivatives of managers. In addition, the lack of transparent data involving in info1mation of prices and quantities of exchanges markets would also limit the derivative use. The prospects of derivative use, however, would be highly potential when these existing problems were settled. |
| Year | 2003 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-03-57 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Ramachandran, Neelakantan |
| Examination Committee(s) | Broustail, Francois Joel; Dimmitt, Nicholas J. |
| Scholarship Donor(s) | Government of France;Petro Vietnam |
| Degree | Research report (M.Sc.) - Asian Institute of Technology, 2003 |