PVFCCo - Phu My, PVOIL sign strategic cooperation agreement in services, trade, and chemicals

Petrovietnam Fertilizer and Chemicals Corporation (PVFCCo - Phu My) and Petrovietnam Oil Corporation (PVOIL) on Wednesday signed a strategic cooperation agreement, marking the beginning of a comprehensive, multi-sector collaboration between the two members of state-owned Petrovietnam.

The agreement reflects both parties’ desire and commitment to jointly implement Petrovietnam's strategic goals and to effectively leverage each side’s infrastructure ecosystem and professional capabilities.

The cooperation is based on principles of equality, mutual support, and synergistic value creation, aiming to enhance productivity, optimize operations, and promote comprehensive green transformation in both companies' activities.

Under the agreement, PVFCCo - Phu My and PVOIL agreed to strengthen collaboration across various domains, focusing on efficiently utilizing their existing infrastructure, logistics, distribution networks, and production capacity.

Both sides will jointly research and implement commercial, service, and investment solutions aligned with sustainable development strategies, improving supply chain efficiency, and expanding their domestic and regional market presence.

"The signing of this agreement serves as a model for developing multi-industry linkage frameworks where solutions from different sectors are flexibly integrated to form a value network interconnecting multiple value chains," PVFCCo - Phu My said in a release.

"It is also an important preparatory step for embracing new trends such as energy transition, green economy, circular economy, and digital transformation, affirming both companies’ pioneering capabilities in a volatile economic environment," it added.

The first initiative under this cooperation is the joint supply of Diesel Exhaust Fluid (DEF) to the market. This solution helps treat NOx emissions from diesel engines by converting them into nitrogen and water vapor, thus purifying exhaust gases from harmful substances. The main component of DEF/Phu My Xanh is urea, while PVFCCo - Phu My is one of the largest urea producers in Vietnam.

At the signing ceremony, Nguyen Xuan Hoa, chairman of PVFCCo - Phu My, said he hopes that the distribution of DEF/Phu My Xanh will serve as a foundation for broader cooperation programs in the future, particularly with environmentally friendly products such as green hydrogen and green ammonia (NH3).

To bring the agreement into practice, he proposed that both sides quickly establish a working group to develop an implementation plan with specific targets, aiming to initially supply 10,000-20,000 cubic meters of DEF/Phu My Xanh annually.

Chairman of PVOIL Cao Hoai Duong stated that with a nationwide distribution network of 900 retail stations and more than 30 depots, PVOIL is well-positioned to bring DEF/Phu My Xanh to the market efficiently.

He estimated that PVOIL customers alone could generate demand for 15,000 to 30,000 cubic meters per year.

Beyond distributing DEF/Phu My Xanh, Duong expressed interest in expanding cooperation to include the storage of PVFCCo - Phu My’s ammonia (NH3) at PVOIL’s depots, and in gaining access to PVFCCo - Phu My’s transportation company partners.

The DEF/Phu My Xanh product, produced by PVFCCo - Phu My, meets international standards. It will be distributed through PVOIL’s national network of petrol stations.

This product is expected to contribute to air and environmental purification, especially in major urban areas.

PVFCCo - Phu My is one of the largest urea producers in Vietnam. It is also gradually expanding into the chemical and environmental sectors, leveraging its modern plant complex in Phu My, Ba Ria-Vung Tau province in southern Vietnam and strong integration within Petrovietnam’s petrochemical chain.

It is listed on the Ho Chi Minh Stock Exchange as DPM, which closed Thursday at VND35,100 ($1.35) per share.

PVOIL is a leading petroleum distribution company in Vietnam, with nearly 900 retail outlets nationwide, accounting for around 23% of the market share. It is a pioneer in digital transformation with cashless payment solutions such as PVOIL Easy, PVOIL 4U, and PVOIL B2B.

It also leads in energy transition efforts, including the installation and operation of over 400 electric vehicle (EV) charging stations at its fuel stations. It actively develops non-fuel services and aims to become a top provider of diverse energy solutions in the future.

PVOIL is registered on the Unlisted Public Companies Market (UPCoM) as OIL, which stood at VND10,600 ($0.41) per share on Thursday.