PV Oil to buy 99.94% stake in Shell Laos

Vietnam’s Ministry of Planning and Investment is seeking the government’s approval for PetroVietnam Oil Corp.’s (PV Oil) plan to buy a 99.94% stake in Shell Laos from Royal Dutch Shell. PV Oil will spend US$4.434 million on buying Shell Laos’ shares to take over 72 filling stations and five petroleum stores in 11 cities and provinces across Laos for 50 years, the Lao dong newspaper reported. The conveyance is part of PV Oil’s strategy to widen its oil distribution business in Southeast Asia, including Cambodia and Laos. PV Oil, which was established in June 2008 with the merger of PetroVietnam Trading Corp. (Petechim) and Oil Processing and Distribution Co. (PDC), is also targeting a 10% share of the lubricant market in Vietnam in the near term. (February 3, 2010)