The tendering process at the commercial division of PetroVietnam Exploration Production Corporation

Table of Contents

Table of Contents............................................................................................................................................1
I.Overview about PetroVietnam:...........................................................................................................3
II.Overview about PetroVietnam Exploration Production:....................................................................4
1/ History and Development process:....................................................................................................4
2/ Organization chart:.............................................................................................................................5
3/ Fields of operation:............................................................................................................................6
I. Commercial activities in general and Tendering activities in particular at PVEP:............................12
II. The tendering process at PVEP:........................................................................................................13
III. Operation Assessment.....................................................................................................................19


Preface
Until recently, tendering and tender appraisal have been a necessary, but
seldom celebrated, component of multinational corporations. Tender or procurement
activities within companies, especially in the field of petroleum exploration and
production these days are playing pivotal roles in the success of giant firms in ways
that old-fashioned purchasing managers could never have imagined.
The decision of the 6th Party Congress in 1986 to undertake a comprehensive
restructuring and renovation process is often seen as the main point of departure for
Vietnam’s economic reforms. Since then, our country has been following the
renovation path of industrialization and modernization; which means investment
projects especially in power-related fields are an important part of economic
development. Therefore, at the present stage we can confirm that all investment
activities have proved to play a vital role in the process of developing and perfecting
production systems in order to enhance the efficiency of investment projects.
To best meet the demands of quality, implementation schedule, cost saving and
limitation on the level disputes which can cause physical damage or harm to the
reputation of stakeholders, the use of tendering and procurement method in
purchasing goods and services has proved to have increasingly complex technical

requirements, especially to projects of companies which have multiple owners,
projects in the state sector, or projects sponsored by the international financial
institutions. In addition to that, tendering activities not only takes place within one
single country but it also extends internationally, as the product being procured has
specific characteristics which attract domestic and foreign customers. Therefore,
research and studies relating to the knowledge of tendering activities is becoming
increasingly necessary for students as well as those who are working, studying in

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related fields. With the desire to have a better understanding of the mode of tendering
and tender appraisal, on the basis of the knowledge learned at the university and
practical experience gained through an internship at the Commercial division of
PetroVietnam Exploration Production, I have studied in depth and chosen the
following subject: “The tendering process at the commercial division of
PetroVietnam Exploration Production Corporation”.
I sincerely thank lecturer Vu Thanh Toan for being my dedicated instructor,
and hope that this internship report can help us understand PetroVietnam Exploration
Production Corporation and its tendering activities better.

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Chapter 1
Overview about PetroVietnam
Exploration Production Corporation
(PVEP)
I.

Overview about PetroVietnam:
PetroVietnam is the trading name of Vietnam Oil and Gas Group (PVN) (in

Vietnamese: Tập đoàn Dầu khí Quốc gia Việt Nam). PetroVietnam has developed
rapidly since it was established in 1977, and its activities, through its various
companies and wholly owned subsidiaries, now cover all the operations from oil and
gas exploration and production to storage, processing, transportation, distribution and
services. Wholly owned by the Vietnamese central government, it is responsible for
all oil and gas resources in the country and has become its country's largest oil
producer and second-largest power producer.
PetroVietnam operates in many fields and has the main functions and tasks
such as: Invest in subsidiaries and affiliates; control the subsidiaries following the
percent of holding registered charter capital of PetroVietnam. It implements
petroleum activities and sign the petroleum contracts with the organizations,
individuals operating in petroleum fields based on Petroleum Law; manage and
supervise the petroleum/hydrocarbon exploration and production activities following
contracts with petroleum contractors and subsidiaries, organizations and other
individuals. PetroVietnam also directly does business in accordance with the
Vietnamese related laws for profit targets. Economic relations between PetroVietnam
and its subsidiaries, affiliates and are stipulated in economic contracts. It implements

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rights and obligations of the owner at the subsidiaries and affiliates and organizes the
implementation of business plans among PetroVietnam Oil and Gas Group.
PetroVietnam has 7 subsidiaries:
•

Petrovietnam Exploration Production Corporation (PVEP)

•

Petrovietnam Gas Corporation (PV Gas)

•

Vietnam Gas Pipeline Joint-Stock Corporation (PV Pipe)

•

Petrovietnam Oil Corporation (PV Oil)

•

Petrovietnam Power Corporation (PV Power)

•

Binh Son Refinery Ltd. (BSR)

•

Petec Trading and Investment Corporation

II. Overview about PetroVietnam Exploration
Production:
1/ History and Development process:

PetroVietnam Exploration Production Corporation (PVEP) is one of Vietnam’s

most established entities. It is the major force driving Vietnam National Oil and Gas
Group’s (PetroVietnam) core operational fields of oil and gas exploration and
production.
The establishment and development of PVEP is closely linked to the history of
Vietnam's oil and gas industry over the last half century. Starting as PetroVietnam II
(PV-II, established on 5/1988) and PetroVietnam I (PV-I, established on 11/1988),
PVEP has undergone multiple name changes and restructuring over its growth
phases. In 1993, PetroVietnam I and II were reorganized and PetroVietnam PSC
Supervising Company (PVSC) and PetroVietnam Exploration Production Company

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(PVEP) were established. This marked an important step in the national oil and gas
industry, as operations now became more effectively managed and, at the same time,
participation begun as a contractor in domestic and international oil and gas
contracts.
The establishment of the PetroVietnam Investment Development Company
(PIDC) in 2000 out of PVSC was a turning point in PVEP’s history, with PIDC
increasing its own investment in domestic projects and gained success in solely
managing important production projects as well. It began to deploy investment for oil
and gas exploration in foreign countries and the first projects executed were in Iraq,
Algeria, Malaysia and Indonesia.
The current version of PVEP was established on 04/5/2007 through the
consolidation of the former PVEP and PIDC corporations in order to unify their
business operations both nationally and overseas.
2/ Organization chart:

PVEP operates with the Board of Directors and Executive Board who are
heads and act under the supervision of Internal Supervisory Board:

PVEP has 12 functional divisions: Accounting and Audit, Administration and
Public Affairs, Commercial, Corporate Planning and Asset Management, Drilling,
Exploration, Human Resources, Information Technology and Management System,
Investment and Business Development, Legal, Operation of Exploitation Projects

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Division, Reservoir Engineering. The 4 companies include PVEP Overseas, PVEP
POC, PVEP Song Hong, PVEP Venezuela.

3/ Fields of operation:

PVEP produce oil and gas for domestic consumption and export in an efficient
and environmentally safe manner, substantially benefiting the community and all
employees at the company. In addition to that, its main functions are accelerating
exploration both in domestic and overseas, increasing oil reserves for future
exploitation, developing exploiting in deep water areas, off coastal, overlapping and
disputed areas, expanding the investment area and proactively conducting petroleum
exploration and production operations overseas.

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Oil and Gas exploration and production
With a view to increasing oil and gas reserve and discovering new fields to
meet domestic demand and export, PVEP has been carrying out effective exploration
and production of oil and gas both at home and abroad through PSC, JOC, JOA, BCC
contracts, self-investment and self-management in exploration, making important

petroleum discoveries, quickly bringing the discovered fields into production phase
with the application of state-of-the-art technologies to increase production as well as
oil and gas recovery rate, thus protecting the environment and natural resources.
Domestic exploration and production activities: PVEP has recently signed six
new petroleum contracts of blocks 05- 2/10 (with Talisman), 148-149, 135-136/03
(with Talisman/Pearl), 45 (with Mitra), 102/10 and 13/03 (with Santos), increasing
the number of effective contracts to 60.
During the last year, PVEP conducted survey and acquisition of over 12,500
km 2D and 5,600 km2 3D seismic in accordance with the signed contracts and
general exploration program for exploration and appraisal of oil and gas potential in
structures. PVEP drilled 82wells, among them 11 for exploration, 10 for appraisal, 61
for production and some others for water injection and well-to-well connection with
the total drilling length of 222,000m at the expense of about 1.160 billion US
Dollars. As a results of such exploration – appraisal drilling campaign, several
significant oil and gas discoveries were made in wells GT-1X,MT-1X (Block 09-1,
VietsovPetro), CVX-2X (Block 117-119, ExxonMobil) and others, leading to the
total recoverable reserve increase by 15 million t.o.e in2011, thus ensures the
reserves increase by 110 to115 million t.o.e for the period 2011-2015.
Overseas exploration and production activities: Implementing the Decision
No. 386/QD-TTg dated 9 of March 2006 by the Prime Minister of Vietnam in regards
to the vision and primary targets in-overseas investment strategy, during the last year
PVEP engaged in new petroleum contracts, increasing the total number of effective

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exploration and production projects to 20 in 14 countries, including the Russian
Federation, SNG countries, Middle East, Northern and Central Africa. In addition to
that, Latin America and ASEAN countries also play pivotal roles in exploration
projects of PVEP.

Generally, in the period of 2011 – 2015, PVEP will expedite the exploration
and production activities both in Vietnam and overseas, targeting on recoverable
resource increase by 15-17 million t.o.e and sustainable production of 10-12 million
t.o.e a year.
To achieve these goals, active promotional programs were carried out, the
significant investment amounts were attracted for its in-country projects and a
number of petroleum contracts were signed, including ones in the deep water and
remote offshore acreages which are proving to be increasingly important.
For its overseas investment strategy, PVEP has gained positive achievements,
thus being able to increase the oil and gas reserves and production, contributing
considerably to the national energy security of Vietnam and gradually enhance the
Group's position and image in the regional and global arena.

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Petroleum services
PVEP offers a wide range of oil and gas products and services, and its
petroleum services have been expanded in scale and advanced technologies to serve
oil and gas projects at home and abroad. Several petroleum technical services
companies have been restructured or newly established for thus purpose. Services
provided by PVEP are:
-

Geo-physics survey, technical and drilling services for oil and gas

producing fields, provision of FPSO and FSO vessels, import-export and supply of
petroleum materials and equipment
-

Import-export and trading of crude oil and petroleum products

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-

Transportation, storage, supply and distribution of oil and gas products, dry

gas and LPG
-

Operation and maintenance of oil and gas facilities (production platforms,

oil tankers, crude oil storage vessels, oil and gas pipeline systems, gas processing
plants, high buildings...), services for oil spill contingency
-

Design and installation of oil and gas structures, power and civil

construction
-

Maritime transportation and logistics

-

Provision of technical workers, tourism, hotels, catering for offshore oil

and gas facilities

Power generation
Investment in power generation sustains the investment in energy
infrastructure, meeting the increasing electricity demand and energizing the
economic development of the country. PVEP is investing strongly into power
generation and has become the second largest power producer in Vietnam. Despite of
being the new business area, with high enthusiasm and responsibility, PVEP has
within 10 years completed the construction of 4 high-efficiently combi-cycle gas
turbine power plants, namely Ca Mau 1, Ca Mau 2, Nhon Trach 1 and Nhon Trach 2
with total installation capacity of 2,000MW. PVEP is proud with safety and efficient
operation of the said plants, delivering about 24 billion KWh to national power grid.
The current generation capacity of PVEP accounts for around 3-5% of total
effective installed capacity of the country. PVEP continues strengthening the Project
Management Boards, enhancing the effective operation management, maintenance,
repairing and marketing activities. The company is currently undertaking the
construction of several other power plants including 5 coal-fired plants of 1,200MW

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each, namely Vung Ang 1, Long Phu 1, Thai Binh 2, Quang Trach 1 and Song Hau 1,
two hydro-power plants of Hua Na and Dakring and Phu Quy wind power plant.
PVEP targets on increasing its generation capacity of 7-8% of total national power
generation by 2020, fuelling the economic development of the country.
Promoting its role as PetroVietnam’s main force in international integration
and foreign investment, PVEP is currently participating in dozens of oil and gas
projects in 14 countries, having gained production output from such fields as Cendor
and D30 in Malaysia and is currently speeding up production activities in Algeria and
Peru. PVEP's achievements have contributed, together with its parent company
PetroVietnam, in helping ensure national energy security, assisting the Government

regulate the economy and protecting Vietnam’s sea and island territory sovereignty.

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Chapter 2
Commercial activities in general and
Tendering activities in particular at
PVEP
I. Commercial activities in general and Tendering activities
in particular at PVEP:
Commercial activities of the PVEP include 3 main fields which closely relate
to each other: Oil and Gas trading, Commercial Insurance, and Tender/ Procurement
and Tender Evaluation.
Oil and Gas trading is the main commercial activities of PVEP. Trading
commodities include crude oil, heating oil, natural gas and gasoline. Energy
commodity trading is an essential business. The might of corporations like
PetroVietnam can be viewed as somewhat proportionate to their ability to create and
manage complex trading systems and facilitate energy trades, as these served as the
wheels of the corporation’s development.
Another activity of the commercial division includes Commercial Insurance,
which is closely related to Oil and Gas trading. While trading commodities, insurance
is essential as it protects the corporation from running into risky situations. Insurance
is classified into two groups. The first is life insurance, which handles life insurance,
annuities and pension products. This group is characterized by its long-term
investments. The other group is known as non-life insurance, and it covers all other
types of insurance, such as a commercial fleet policy for a PVEP’s trucks and other
vehicles and the company building hazard policy, which covers fire, theft, vandals

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and weather-related hazards. This also includes PVEP's professional liability policies
with specific requirements.
Finally, Tendering and Procurement activity is the most essential part of
commercial activities at PVEP, into which we will take a closer look. Procurement at
PVEP is the process of buying goods, works or services for the corporation or the
employees. For instance, in 2014, procurement activities at PVEP comprise the
process of buying the basic infrastructure and services such as Petromod Software or
Coaching courses. This may involve the acquisition of operation and management
services for a basic service. Procurement is often carried out by the process of
tendering, rather than buying products directly from a vendor. PVEP here acts as the
promoter, client or employer wishing to obtain goods or services, will first specify its
requirements. Subsequently, it will open the bidding in a process known as
Tendering. Interested companies can then submit their proposals to PVEP to meet
these requirements. PVEP will then evaluate the bids to decide which offer best suits
its requirements. The company that has been successful in the tender process will
perform the work by contract.
Tendering and Procurement activities are the most essential in Commercial
division’s scope of work; therefore, in-depth investigation into PVEP’s Tendering and
Procurement activities is explored in the sections below.
II. The tendering process at PVEP:

1/ Types of Tendering activities
There are 2 main types of tendering activities at PVEP, namely Open
Tendering and Selective Tendering.
Under open tendering the employer advertises his proposed project, and
permits as many contractors as are interested to apply for tender documents.
Sometimes he calls for a deposit from applicants, the deposit being returned ‘on

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receipt of a bona fide tender’. However, this method can be said to be wasteful of
contractors’ resources since many may spend time preparing tenders to no effect.
Also, knowing their chances of gaining the contract are small, contractors may not
study the contract in detail to work out their minimum price, but simply quote a price
that will be certain to bring them a profit if they win the contract.
Under selective tendering (also called restricted tendering) the corporation
advertises its project and invites contractors to apply to be placed on a selected list of
contractors who will be invited to bid for the project.
The reasons for restricted tenders differ in scope and purpose. They are called
because:
•

There is essentially only one suitable supplier of the services or product

•

There are reasons for expedience such as emergency situations

•

There is a need to weed out tenderers who do not have the financial or

technical capabilities to fulfill the requirements
Contractors applying are given a list of information they should supply about
themselves in order to ‘pre-qualify’. The advantage to the employer is that it can
select only those contractors, who have adequate experience, are financially sound,
and have the resources and skills to do the work. Also, since only half a dozen or so

contractors are selected, each contractor knows he has a reasonable chance of gaining
the contract and therefore has an incentive to study the tender documents thoroughly
and put forward his keenest price. However, since contractors have all pre-qualified it
is difficult to reject the lowest bid, even if it appears dubiously low – unless it is due
to some mistake.

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2/ Main commodities:
Tendering activities at PVEP usually include the process of selling oil and gas
through JOCs or purchasing the basic services or infrastructure for the corporation.
Instead of buying services or products directly from a vendor, PVEP carries out
Tendering which comprises of main tendering packages as follows:
- Oil and Gas product sharing after exploration
- The coordination with PV Oil to carry out contracts to sell blocks BR-325
and BO-097
- The selling of 320kb Loreto & Residual oil in Bayovar for PeruPetro for
12.8 USD/barrel
- Preparation for Drilling projects HRD-1X – “Drilling Rig” Tender package,
“Directional Drilling” Tender package
- Scale treatment for Flow line of SD-2PL
- The provision of services in Staff mentoring and training courses for PVEP
by HPT Vietnam Corporation
- Personnel

data

management

Software

PVN

–

HRM

(Copyright

PetroVietnam)
- The Provision of Acquisition of OCTG & Wellhead for 2014 Drilling
Program - Blocks 135-136/03

3/ Markets for Tendering activities:
Main counterparts of PVEP in tendering contracts are listed as follows:
Country

Company names

Vietnam

Premier Oil Vietnam LCC (also known as Premier Oil
Vietnam Limited)

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Santos Petroleum ventures B.V.
PetroVietnam Gas Joint stock Corporation

GeoPetro Vietnam S.A.
VietsovPetro (VSP)
Japan

Japan Vietnam Petroleum Co. Ltd

United Kingdom

ConocoPhillips (U.K.) GAMA Limited

Malaysia

Petroliam Nasional Berhad (Petronas)
Petronas Carigali Overseas SDN BHD (PCOSB)

Korea

Korea National Oil Corporation, SK Energy Co. Ltd

4/ Tendering Procedure at PVEP:
The tendering activities at PVEP comprise of the main steps as follows:
Tender process is determined:
The organization requesting the tender will determine the type of tender that
will be used, as well as what will be involved in the tender process.
This stage includes two types of tender as stated in the a/ part: Open tendering
and selective tendering.
Request for tender is prepared:
The request for tender outlines what is required, the contractual requirements
and how you should respond. Tender requests are invitations to suppliers (Invitation
to tender - ITT) to provide a competitive offer to win a contract for the supply of

their products or services. There are many different terms for tender requests, and
each may have slight differences, with the most common being request for tender

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(RFT) and invitation to tender. Other terms include request for proposal (RFP),
expression of interest, and call for bids etc.
An invitation to tender (ITT) (often called tender for short), which is a special
procedure for generating competing offers from different bidders who are looking to
obtain the right to supply a typical type of good or service to PVEP. They are usually
preceded by a pre-qualification questionnaire (PQQ).
Double envelope system:
In an open bid or tender system at PVEP, a double envelope system may be
used. The double envelope system separates the technical proposal (based on and
intended to meet the statement of work) from the financing or cost proposal in the
form of two separate and sealed envelopes.
During the tender evaluation, the technical proposal would be opened and
evaluated first followed by the financing proposal.
The objective of this system is to ensure a fair evaluation of the proposal. The
technical proposal would be evaluated purely on its technical merits and its ability to
meet the requirements set forth in the Invitation without being unduly skewed by the
financial proposal.

Tender box:
Next, a tender box is used, which is a mailbox that receives the physical tender
or bid documents. When a tender or bid is being called, a tender or bid number is
usually issued as a reference number for the tender box. The tender box would be
open for interested parties to submit their proposals for the duration of the bid or
tender.

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Once the duration is over, the tender box is closed and sealed and can only be
opened by either the tender or bid evaluation committee or a member of the
procurement department with one witness.
Tender evaluation process:
Once PVEP has had a list of contractors, it begins the tender evaluation
process which determines the lowest responsive bid submitted by a responsible
bidder.
The evaluation procedure may correctly disclose errors, anomalies and
omissions in the bids that appraising committee has mistakenly left out. This review
may also point out weaknesses in the bid or contract documents, or improper
tendering practices by bidders.
Each tender will be evaluated for compliance, and if compliant, then evaluated
against the criteria specified in the tender documentation. The tender that offers best
value for money will win the business.

Notification and debriefing:
When a contract has been awarded, the successful tenderer will be advised in
writing of the outcome. Unsuccessful tenderers are also advised and offered a
debriefing interview.

Post-tender Negotiation:
Post-Tender Negotiation is contact between the buyer and tenderers to refine
and improve the bid(s) in order to ensure that prices, delivery or associated terms of
the contract are competitive.

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The potential areas for negotiation will differ for every contract but typical
topics might be the terms of payment; quality of goods or services; supply and cost of
spare parts; earlier delivery or completion dates; warranties and guarantees;
documentation requirements; maintenance and support, repair or after-sales service;
and compensation for failure to meet specified requirements.
Finally, contracts are established and managed, and a formal agreement will be
required between PVEP and the successful tender.

III. Operation Assessment

1/ PVEP’s achievements:
PVEP, by inheriting the achievements and experiences of its precursors, the
present-day corporation has made huge progress in oil exploration, production and
especially trade through tendering activities.
Between 2007 and 2012, the company produced more than 40 million tons of
oil and condensate to sell abroad through tender. PVEP also explored 36.5 billion m3
of gas, increasing the country’s reserve by 273 million tons of converted oil, and sold
approximately 15 billion m3 through tender and procurement.
Moreover, PVEP also announced 27 oil and gas discoveries and put 16 new
fields into production; made revenue of 171 trillion VND and paid 59 trillion VND to
the State Budget. Commercial activities also made huge progress as the number of
contracts for tender at PVEP increased to 56 projects during the first half of 2014.
With the important task of searching for, exploring and producing oil and gas,
PVEP has continually made efforts to renew its image and governance and speed up
development and international integration. The company has maintained its strategic
aim in making PVEP a top international oil and gas company in the region, using

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modern science and technology, increasing its economic and financial potential and
retaining high competitiveness.
Despite its relatively new arrival in the market compared to many other
international oil and gas companies, PVEP has continually improved its management
and operation capacities, and at the same time, deployed many breakthrough
solutions with respect to organizational structure, human resource development,
financial resources and the use of science and technologies. Its officers and workers
have gone to many remote lands and overcome numerous difficulties to discover
natural resources to assist in Vietnam’s growth and prosperity.
PVEP’s continual success has confirmed that its strategic foresight was the
correct one. PVEP’s accomplishments have greatly impacted PetroVietnam’s
important contributions over the last half-decade.

2/ Difficulties facing PVEP and evaluation:
Beside the above mentioned achievements, PVEP also have to face huge
challenges in commercial activities, especially procurement and tendering process.
In open tendering, PVEP may be offered only ‘a lottery of prices’ and not
necessarily the lowest price for which his project could be carried out. If the
corporation chooses the lowest tender, it runs the risk the tenderer has not studied the
contract sufficiently to appraise the risks involved; or the tenderer might not have the
technical or financial resources to undertake the work successfully.
It is true that PVEP can check the resources and experience of the lowest
bidder and reject its tender if the enquiry proves unsatisfactory; but several bids may
be below the estimated cost of the job and, if such tenderers appear satisfactory and
their bids are not far apart in value, it is difficult for PVEP to choose other than the
lowest.

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In addition, companies doing business like internationally like PVEP must deal
with matters concerning foreign legal systems, different customs and, possibly,
different languages. This can cause problems with international procurement. Other
problems include dealing in a different currency and facing risks from fluctuations in
exchange rates.
Misunderstandings may arise with trading and tendering contracts, for
example, when PVEP opens an Invitation to Tender to Venezuela, and it may be
difficult to undertake dispute resolution procedures or obtain compensation.
Financing and settling payment for international contracts is more complex and risky
than for domestic contracts.
It is also more difficult for PVEP to know about the customer in another
country and this can create an increased risk of default owing to the insolvency of the
customer or dissatisfaction with the goods or services supplied. Problems with
international trade may arise from government regulations in areas such as product
standards or health and safety, and the possibility of political intervention in the form
of freezing of funds or seizure of property. There also may be increased risk from
unforeseen occurrences such as war or natural disaster.
In the absence of direct and close relationship between PVEP and its vendors,
it may lack information about foreign businessmen and therefore, special steps are
necessary to verify the creditworthiness of foreign corporations. It is difficult to
obtain reliable information concerning the financial position of the foreign vendors.
3/ Proposed measures to the problems:
In order to address those problems, PVEP needs to carry out a number of
actions.
Firstly, it needs to make sure that procurement continues to demand only those
outcomes that our suppliers are capable of providing. This does not prevent

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procurement professionals from encouraging the supply market to provide more. But
procurement professionals need to acknowledge that building competitive markets
requires competing suppliers.
Secondly, compliance with standards, requirements and processes is important,
and the way PVEP measures the compliance of both its staff and its suppliers will
influence its behavior. A key factor in influencing its behavior is the complexity and
the cost of compliance. PVEP can resolve this internal conflict by making
compliance part of its culture.
In addition, PVEP needs to establish tender as a discipline that is capable of
adapting readily to an ever changing world; build teams, skills and processes that
enable it to develop a community of procurement professionals who can deliver best
value from individual procurements.

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Conclusion
Along with the development of the economy in Vietnam, state-owned
enterprises are also step by step expanding and enhancing the quality of work with
the increased investment in infrastructure and facilities. This inevitably leads to
intense competition among enterprises that play the role of suppliers for goods and
services, particularly for larger corporations such as Petro Vietnam Exploration
Production Corporation - where the budget for procurement activities is up to
hundreds of billion VND per year. For competitions to be transparent and effective,
the tender method plays a vital role and can ensure the effectiveness of procurement,
which is not only advantageous for vendors but also for contractors.
The tendering method has only been emerging in our country but has proved
to be suitable for our path to become a market economy. Although having had

significant achievements in tendering activities, PVEP also faced a number of
shortcomings. Therefore, measures to tackle the problems should come not only from
the state but also from related parties in the tendering process. This can make PVEP
maintain the position of the leading corporation of PetroVietnam and play a vital role
in the development of Vietnam's economy.
After the internship at the Commercial Division of PVEP and choosing the
topic "The actual status of Tendering activities at PetroVietnam Exploration
Production Corporation”, I have gained some insights into the actual commercial
activities in general and the tendering process in particular, which has added
invaluable knowledge to what I have studied at Foreign Trade University.
Although this report may still have many limitations, it has partially codified
some general information about PetroVietnam, PetroVietnam Exploration Production

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Corporation, the fields of operation, the markets for tendering and procurement
activities, the achievements of and problems facing PVEP in its tendering activities. I
am looking forward to the feedback and comments from lecturer Vu Thanh Toan for
the report to be more complete.

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