PVD's Annual Report 2008

PV Drilling • ANNUAL REPORT 2008
PV Drilling
PETROVIETNAM DRILLING AND
WELL SERVICES CORPORATION
- PVD
4th FIoor, Sailing Tower, 111A Pasteur St.,

PETROVIETNAM
Dist.1, Ho Chi Minh City
DRILLING AND
Tel: (84.8) 3914 2012
Fax: (84.8) 3914 2021
www.pvdrilling.com.vn WELL SERVICES

CORPORATION
- PVD
ANNUAL REPORT 2008
PIONEER OF VIETNAM DRILLERS

Contents
Vision - Mission 3
CEO’s Statement 4
Organization Chart 6
Board of Management, Supervisory Board, Board of Directors 8
Corporate Profile 12
PV Drilling Significant Milestone in 2008 26
2008 Financial Highlights 27
2008 Financial Results Summary 28
Market Analysis and Development Strategies for PV Drilling in 2009 30
PV Driiling Business Plan 2009 36
Strategies for Steady Growth of PV Drilling Amidst the Volatile Economy in 2009 38
Investor Relations 40
Public Relations 42
Financial Statements 44
1
PV Drilling
Annual report 2008 2
Pioneer
of
Vietnam
Drillers
Vision
To be an internationally reputable and reliable
drilling contractor and drilling-related services
provider in the oil and gas industry
Mission
To be a leading regional provider of drilling and
drilling-related services, creating value added
for clients by delivering high quality services at
competitive prices
3
PV Drilling
CEO’S STATEMENT
Dear Shareholders,
The year 2008 has been a difficult and challenging year for all Vietnam companies, including
PV Drilling. However, with the right affirmed development strategy concentrating on the supply
of drilling services, PV Drilling once again made significant progress. With the continuous
increase of financial performance, PV Drilling’s revenue in 2008 was VND 3,729 billion, an
increase of 36.2% compared to 2007. The net profit reached VND 922 billion, a significant
annual growth of 61.3% from the previous year. In 2008, earning per share was VND 7,431, up
20% from VND 6,192 in 2007.
2008 marked many outstanding achievements in business activities of PV Drilling. PV

DRILLING I jack-up rig operation efficiency increased from 86% to 99.6% and has achieved
two-year safe operations (LTI free) counting from the first delivery day in March 2007 and
broke the record of drilling in the deepest Granite basement with a total depth of 6,526 meter
in well 9-2-CNV-2P in Cuu Long basin, Vietnam. During the year, PV Drilling concentrated on
investing and developing efficient high-tech equipments and services such as mud logging,
slickline… while maintaining its strength in traditional services such as drilling tool rentals, oil
spill response, drilling equipment maintenance, drilling materials supply. PV Drilling has been
moving forward in expanding manpower supply services to the regional countries as well as
in the development of the PVD Training Company. This move drove the initial success of high
quality human resources training strategy of PV Drilling which is also capable in undertaking
the management and operation of the rig PV DRILLING I currently, as well as PV DRILLING II
& III jack up rigs later.
Together with the development of high-tech services, application of modern technology to ensure
future steady growth has always been the focus of PV Drilling as it aims to raise the efficiency
of corporate governance in general and financial management in particular. In 2008, PV Drilling
implemented the ERP system together with material management system-MAXIMO and other
systems in oil and gas industry that has been applied successfully in the Company to support its
corporate governance and to enhance productivity.
At 2008 continued to be a successful year for PV Drilling in its joint-venture activities with oilfield
services companies. BJ-PV Drilling JV Company is an example. It has maintained good business
performance and contributed significant profits to PV Drilling. In addition, PVD-PTI JV and PVD
PV Drilling, Tubulars Management JV has operated and gained initial progress since end of 2008.
we always The merger of PVD Invest, a subsidiary in which PV Drilling owned 51% of the charter capital,
into PV Drilling was an important milestone that attracted investors’ attention. The merger aims
make great to ensure PV Drilling’s long-term stable development in its drive to become Vietnam’s leading
professional drilling contractor.
efforts for
Dear Shareholders,
Company’s
The year 2009 is expected to be more challenging than before in many aspects due to the
steady certain delay which is the consequence of the effects from the global financial crisis to the
incomplete joining of Vietnam economy. The plunge in oil price has affected the general oil
development and gas industry and the drilling industry in particular. As such, the competitions among drilling
contractors in the global marketplace is unavoidable. Despite of this, the local market remains
the target of PV Drilling during this period. The demand for drilling rigs, especially jack-ups,
and is forecasted to remain relatively stable. Therefore, opportunities in the local market will still
be available. Moreover, in view of the global economy slowdown, a number of investment
shareholders’ projects have a tendency to be downward. This will pave the way for PV Drilling leverage on
the situation to invest in high tech services that have contributed significant revenue and profit
benefits to PV Drilling in 2008, as well as to enhance the expertise and competitive advantage of PV
Drilling as an oil and gas services provider.
As a subsidiary of PetroVietnam, PV Drilling has advantages from PetroVietnam by receiving

the supports in time and efficiently for its business development. In addition, with modern
infrastructure, high technologies, the professional and experienced management and staff, and
an efficient corporate governance system, PV Drilling will rise to the demand in the Vietnam’s
oil services sector to develop capabilities to maintain the increase in revenue and profit during
this difficult period. Based on the potential developments, we are confident for strong growth
from 2010 to assure the achievement of long-term objectives to increase shareholders value
while aiming to become leading drilling contractor in Vietnam.
On behalf of the Management Board, I would like to express the sincere thanks to the trust and
supports of PetroVietnam, esteemed local and foreign shareholders. I would like to thank all
of PV Drilling staff for their continual efforts and significant contributions to the success of PV
Drilling in the past years. Personally, I am confident that with the right affirmed business strategy,
management and operations transparency, and commitment to shareholders’ interests, PV
Drilling will continue to move forward to the long-term development and be deserved with the
trusts of investors, clients, partners and public.
Sincerely,
DO VAN KHANH
President & CEO
5
PV Drilling
6
ORGANIZATION
Annual report 2008
CHART
SHAREHOLDERS’
GENERAL MEETING
SUPERVISORY BOARD
BOARD OF
MANAGEMENT
BOARD OF
DIRECTORS
Internal Audit Dept. Admin & HR Dept. Finance Dept. Accounting Dept.
Commercial & HSEQ Dept. MIS Dept. Legal Dept.

Investment Dept.
Project Hanoi PVD Offshore PVD Well

Management Dept. Representative Services Co., Ltd Services Co., Ltd
Office (PVD OFFSHORE) (PVD WELL Services)
PVD Logging PVD Trading & PVD Drilling PetroVietnam

Services Co., Ltd Technical Services Division Drilling Investment
(PVD LOGGING) Co., Ltd (PVD DRILLING DIVISION) Corporation
(PVD TECH) (PVD INVEST) (51%)
PV Drilling PVD Technical BJ Services – PVD Tubulars

Production Testers Training & PV Drilling JV Co. Management Co., Ltd
International Co., Ltd Certification JS Co. (BJ-PVD) (PVD TUBULARS MANAGEMENT)
(PVD-PTI) (51%) (PVD TRAINING) (49%) (51%)
(51%)
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PV Drilling
8
BOARD OF MANAGEMENT
Annual report 2008
Mr. DO DINH LUYEN

Chairman

Mr. Luyen is the Chairman of PV Drilling since 3 August 2006.
From September 1975 to May 1988, he served as Engineer for
International Corporation Department of PetroVietnam and later
as Deputy Director of PetroVietnam Exploration and Production
Company, from May 1988 until September 1997. Mr. Luyen was
the General Director of PetroVietnam Insurance Company from
September 1997 to January 2001. He was the Director of Gas and
Power Division of PetroVietnam until August of 2006.
Mr. Luyen, together with other members of the Board of Management

- Dr. Do Van Khanh, Mr. Tran Van Hoat, Mr. Pham Tien Dung - are the
representatives for the 50.38% share of PetroVietnam in PV Drilling.
Mr. Luyen graduated with a degree in Petroleum Mechanical

Engineering in Romania in 1973. He was awarded BA Degree in
Economics in 1993.
Dr. Do Van Khanh

Member, Board of Management
(President & CEO, PV Drilling)
Mr. Tran Van Hoat

(Vice President, PV Drilling)
Mr. Pham Tien Dung

(Vice President, PV Drilling)
Mr. Nguyen Xuan Son

(Deputy General Director, PVFC)
He is a member of Board of Management since 23 January 2006, and

is Director of Vietnam South East Region Gas Project Management
Division since March 2009. From 1985-2001, Mr. Son served as Senior
5 Officer for the Commercial Department Vietsovpetro Joint Venture.
From 2001 to May 2007, he was the Director of PetroVietnam Finance
Corporation (PVFC), Ho Chi Minh City Branch. Between May 2007
and January 2008, he was the Deputy General Director of PVFC.
From January 2008 to March 2009, Mr. Son held the position as Vice
Chairman of PetroVietnam Finance Corporation. He graduated with a
BA Economics degree from Soviet Union in 1984.
Mr. Nguyen Hong Nam
(Deputy General Director, SSI)
He is a member of Board of Management since 23 January 2006, and Deputy

General Director of SSI since 1999. From 1994-1998, Mr. Nam worked as
Officer in Foreign Investment Department of Planning and Investment Ministry.
From 1998 to 1999, he was appointed as Deputy Director of Pan Pacific, and
Director of Pan Pacific, HCM Branch. He graduated with a Master Degree in
Science from Ukraine in 1992.
Mr. Dam Hai Giang

(Manager, Project & Investment Department, VCB)
He is a member of Board of Management since 23 January 2006. Mr. Giang

is Manager of Project & Investment Department, Bank for Foreign Trade
of Vietnam (Vietcombank), the position he has held since 1994. Mr. Giang
graduated with a Master Degree in Finance & Banking from United Kingdom.
SUPERVISORY BOARD
Ms. NGUYEN THI THUY Ms. PHUNG NGUYEN HAI YEN Mr. NGUYEN KIM LONG
Chief Supervisor, PV Drilling Member Member
(Deputy Manager, Financial & Accounting (Manager, Legal Department, SSI)
Department, Vietcombank)
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PV Drilling
10
BOARD OF directors
Annual report 2008
1. Dr. DO VAN KHANH

President and CEO, PV Drillling

1
Dr. Khanh joined the oil & gas industry in 1984, bringing with him 24 years of
experience in the drilling field. In 1994, Dr. Khanh was assigned to build and
manage PTSC Offshore, the former organization of PV Drilling. From 1984 to
1992, he was a Drilling Engineer with Thai Binh Petroleum II Company and
became the Chief Representative of PetroVietnam in Da Nang. From 1992
to 1994, Dr. Khanh held the position of Deputy Director of Odjfell Vietnam
Company, a joint venture company of Odjfell Norway and PetroVietnam. 2
From 1994 to 2001, he served as Director of PTSC Offshore, a division of
PTSC - a subsidiary of PetroVietnam. Since the establishment of PV Driling
in November 2001, Dr. Khanh is the President and CEO of PV Drilling. He
graduated as a Drilling Engineer in 1984, and attained a PhD in Petroleum
Geology in 2005.
2. Mr. TRAN VAN HOAT

Vice President, PV Drilling
Mr. Hoat has 25 years of experience in the oil and gas industry, of which
18 years was with Vietsovpetro - a joint venture company of Vietnam
and Russia. He held the positions of Tool Pusher, Chief Engineer and 4
Rig Manager of Cuu Long Jack-up rig. Mr. Hoat had 4 years of working
experience at Thai Binh Petroleum I Company. He is the Vice President of
PV Drilling since 2001. He graduated with a Petroleum Engineering Degree
in 1982. He also holds the Advanced Petroleum Engineering Certificate
from Soviet Union.
3. Mr. VAN DUC TONG

Mr. Tong has 27 years in the oil and drilling machinery industry. He began his
career as a Mechanical Drilling Expert in Thai Binh Petroleum I Company in
June 1981 and was identified as one of Vietnam’s top experts in drilling rig 6
construction. From 1982 to 1984, Mr. Tong worked as Senior Officer of Drilling
College Institution at Vietsovpetro. From 1984 to 1987, he was the Chief
Engineer for Vietsovpetro. From 1987 to 2002, Mr. Tong held the positions of
Deputy Rig Manager, Deputy Manager of Mechanical Department, Manager
of Mechanical Department of Drilling Enterprise, Manager of Automatic-
Power and Mechanical Department for Vietsovpetro. Since November 2002,
Mr. Tong is the Vice President of PV Drilling. He attained his PhD in Drilling 7
and Production Equipment Technology at Technological Machinery from

Romania in 1981.
8
4. Mr. PHAM TIEN DUNG
Director, PVD Drilling Division
Mr. Dung has 17 years of experience in the oil & gas industry. He worked for well-known international oil & gas
companies in Singapore, Australia, and Thailand. From 2002 to 2005, he served as Director for Drilling Services
Enterprise, a division of PV Drilling. From 2005 to July 2006, Mr. Dung was appointed as Deputy General Director
of PV Drilling and co-position of Director of Drilling Services Enterprise. Since July 2006, Mr. Dung is the Vice
President of PVD, and holds the position of Director of PVD Drilling Division. He graduated with a degree in
Mechanical Engineering in 1988.
5. Mr. LUONG TRONG DIEP

Mr. Diep has 7 years of experience in the import and export business, and 13 years of experience in the oil & gas
industry. From 1995 to 1998, he was the team leader of the Crude Oil Department of Petechim. From 1998 to 2002,
he was the Deputy Manager of Financial & Accounting Department of Petechim. From February 2002 to March
2006, he served as Manager of Commercial Department of PV Drilling. Since March 2006, Mr Diep is the Vice
President of PV Drilling. He graduated with a MBA degree from Australia Master in Finance from United Kingdom.
6. Mr. HO VU HAI
Director, PVD Offshore
From 1994-2001, Mr. Hai was the Leader of Oil Spill Response Division of PTSC Offshore. Since the establishment
of PV Drilling in November 2001 to June 2006, Mr. Hai was the Director of Oil Spill Response Services Enterprise,
a division of PV Drilling. From July 2006 July 2007, Mr. Hai served as Director of Drilling Services Enterprise,
a division of PV Drilling. Since July 2007, Mr Hai is the Director of PVD Offshore- a subsidiary of PV Drilling.
In January 2008, he was appointed as the Vice President of PV Drilling and Director of PVD Offshore. Mr. Hai
graduated with a Maritime Engineering Degree in 1992.
7. Ms. HO NGOC YEN PHUONG

Ms. Phuong has 15 years of experience in the Financial and Accounting field, including 12 years as Chief of
Finance and Accounting in several well-known companies. From 1993 to 1995, she worked as Accountant
for Agrimex. From 1995 until 1998, she served as Chief Accountant of FDI VMEP (now SYM) and was later
appointed as Deputy Director of Finance and Accounting for VMEP-SYM. From 2000 to 2003, she was the
Finance Controller of Joint Venture Holcim Vietnam. From 2003 to July 2007, Ms Phuong worked as the CFO of
S Telecom. From July 2007 to August 2008, she joined PV Drilling as Finance Manager and was appointed as
CFO of PV Drilling in November 2007. She has been the Vice President and CFO of PV Drilling since August
2008. Ms. Phuong graduated with a Master Degree in International Finance and Accounting from Australia.
8. Mr. DOAN DAC TUNG

Chief Accountant
Mr. Tung held the postion as Deputy Financial and Accounting Manager of PV Drilling from January 2002 to
February 2006. Since March 2006 to present, Mr. Tung was appointed to be the Chief Accountant of PV Drilling.
Mr. Tung graduated with a Bachelor of Economics Degree from Finance and Accounting University in 1994.
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PV Drilling
12
CORPORATE
Annual report 2008
PROFILE
PV Drilling’s Management Board and Staff
strongly believe in the development strategy
of the Company with the objective to be the
international professional drilling contractor
Key Milestones in PV Drilling’s Development Drilling- related services

o Drilling tools rental service
o 1994 – Established PTSC Offshore, a division of
o Mud logging & geologist consultant services
Petroleum Technical Services Company (PTSC).
o Tubular handling service
o 26 November 2001 – Established PV Drilling, a
subsidiary of PetroVietnam, based on the handover o Fishing and P&A services
of business activities from PTSC Offshore. o Well head service
o 15 February 2006 - PV Drilling officially became a o Oil spill control service
joint-stock company under the name of PetroVietnam
Drilling & Well Services Joint-Stock Company o OCTG management service
(PV Drilling). o Inspection, maintenance & refurbishment of
o 5 December 2006 - PV Drilling stocks were listed on Ho OCTG, drilling tools & equipment services
Chi Minh Stock Exchange (HOSE). o Drilling manpower supply service
o 8 March 2007 - PV Drilling officially held the o Procurement of materials, equipment and spare parts
naming ceremony for its the first jack-up rig named for oil & gas and other industries
PV DRILLING I.
o Safety & technical training and certification for
o 11 May 2007 - PV Drilling transformed to PetroVietnam oil & gas industry as well as other industry
Drilling & Well Services Corporation under the form
of a holding group company. Other services offered in collaboration with
o 9 November 2008 - PV Drilling held Extraordinary international partners include
Shareholder’s General Meeting to approve the o Cementing and stimulation services
merger plan of PVD Invest, a subsidiary in which
o Well testing service
PV Drilling owned 51% equity, into PV Drilling.
o Directional drilling and wireline logging services
Scope of Services
o Providing comprehensive package of
management, set up and maintenance for OCTG
o PV Drilling is a reputable drilling and drilling-related
services provider for the oil and gas industry in Vietnam
and the region. PV Drilling has expanded its service Organizational Structure
portfolio to include: With more than 1,100 employees, PV Drilling and its
subsidiaries are structured as follows:
Drilling
o Drilling contractor.
Subsidiaries wholly-owned by PV Drilling PV Drilling’s Joint-stock companies and Joint ventures
o PVD Drilling Division o PetroVietnam Drilling Investment Corporation

PVD Invest (51%)
o PVD Offshore Services Company Limited

PVD Offshore o PVD Technical Training & Certification Joint Stock Company
PVD Training (51%)
o PVD Well Services Company Limited

PVD Well SERVICES o BJ Services-PV Drilling Joint Venture Company Limited
BJ Services-PV Drilling (49%)
o PVD Logging Services Company Limited

PVD Logging o PV Drilling-Production Testers International Company Limited
PVD-PTI (51%)
o PVD Trading & Technical Services Company Limited o PV Drilling Tubulars Management Company Limited
PVD Tech PVD Tubulars Management (51%)
Drilling rigs provision is one of PV Drilling’s core services
13
PV Drilling
PVD Drilling Division
A
branch of PV Drilling, specializes in the
management and operations of drilling rigs.
They have been efficiently operating the jack-
up rig PV DRILLING I and land rig PV DRILLING 11.
PVD Drilling Division contributed 40% total revenue
and 80% total net profit of PV Drilling in 2008. The
result is due to the stable and efficient operations of up
to 99.6% of the two rigs, as well as the contributions
of best effort in management and operations from
Division leaders and staff.
Subsidiaries wholly-owned by PV Drilling
15
PV Drilling
A
wholly-owned subsidiary of PV Drilling, specializes
in the provision of drilling manpower, inspection,
maintenance and refurbishment of OCTG, drilling
tools and equipment, oil spill control and waste management
services. PVD Offshore’s business grew steadily in 2008
with revenue and net profit of VND 309 billion and VND 90
billion, recording a revenue and net profit annual growth
of 50.9% and 39.7% respectively. In particular, drilling
manpower supply service contributed the highest portion of
approximately 56% of the Company’s revenue and net profit,
occupying around 90% market share in Vietnam. Besides
the supply of drilling manpower for PV Drilling’s two drilling
rigs, PVD Offshore also provided for rigs operating abroad
including Transocean’s Trident 9 (Singapore) & Trident 16
(Malaysia), Premium’s WillBoss (Philippines), Doosung
(South Korea). In addition, PVD Offshore also supplied
motormen to drilling ship Neptune Discoverer in Venezuela.
PVD Offshore Services

Company Limited
(PVD Offshore)
17
PV Drilling
A wholly-owned subsidiary of PV Drilling, focuses on drilling tool rental,

tubular running, directional drilling/ MWD/ LWD, coring, fishing and P&A, liner
hanger and completion services. In 2008, PVD Well Services increased its
market share in Vietnam by from 10% to 80% for directional drilling services,
a leading high-tech service of the oil & gas industry. Moreover, the Company
successfully implemented the development strategy of professional engineers
for directional drilling and tubular running services, contributing a significant
increase in self-operating rate and reducing the dependence on foreign
partners for provision of these services. With all the above efforts, in 2008,
PVD Well Services reached VND 641 billion in revenue, an increase of 64.4%
compared to 2007 and VND 47 billion in net profit.
PVD Well Services

Company Limited
(PVD Well Services)
PVD Logging Services
Company Limited
(PVD Logging)
A wholly-owned subsidiary of PV Drilling, specializes in high-tech

services such as mud logging, geologist/consultant, slickline, wireline
logging and well testing services. In 2008, PVD Logging reached a
total revenue of VND 556 billion and net profit of VND 39 billion, an
annual growth rate of 71.3% and 28.7% respectively. The results were
attributable to the focus of PVD Logging on self-supply services that
contributed high return on revenue such as mud logging, slickline and
wellsite geologist services. In addition, the Company implemented
a strategic human resources development plan with the recruitment
of highly experienced and outstanding personnel from international
companies, to help strengthen the internals of PVD Logging at low
training cost.
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PV Drilling
20
PVD Trading & Technical Services

Annual report 2008
Company Limited
(PVD Tech)
A wholly-owned subsidiary of PV Drilling, provides materials, spare parts,

equipments and technical services for oil & gas and other industries. One of
its most outstanding achievements in 2008 is the supply of wellhead rental
service for Premier Oil and Truong Son JOC as well as expanding the service
internationally by providing services to Nido Company in Philippines. The
Company has also completed the investment and started operation of the 2.5-
hectare worksite at Dong Xuyen Industrial Zone in Vung Tau City. The worksite
is fully equipped with a 30-tonne & 15-tonne crane, 8-tonne forklift, Lincoln &
Miller welding machines, lathe, milling machine and others. In 2008, PVD Tech
was ranked as the second revenue-generating subsidiary of PV Drilling with
amount of VND 706 billion, occupied 19% of PVD’s total revenue. The company
also achieved net profit of VND 22 billion, an increase of 84.8% compared to
that of 2007.
PV Drilling’s Joint-stock companies and Joint ventures
PetroVietnam Drilling
Investment Corporation
(PVD Invest)
A subsidiary of PV Drilling whereby PV Drilling owns 51%

equity. PVD Invest specializes in the investment of drilling rigs
and technical equipments for rental services to support PV
Drilling development strategy. PVD Invest is the investor of the
two jack-up rigs PV DRILLING II & PV DRILLING III that are
expected to be delivered by end of 2009. On 25 October 2008,
the Extraordinary Shareholders’ General Meeting, PVD Invest
ratified a resolution on the approval of the proposed merging
plan of PVD Invest into PV Drilling. The merger is expected to
complete by the 2nd quarter of 2009, which helps to avoid conflict
of interests as well as combines the power of the two companies
to raise the intrinsic value and enhance value added for PVD
shares. Even during the investment period of the two jack-up
rigs, PVD Invest managed to be profitable for two consecutive
years. In 2008, the Company reached VND 16 billion in net profit
from financial income, up 72.7% from 2007.
21
PV Drilling
A subsidiary of PV Drilling whereby PV Drilling owns 51% equity. PVD Training is the
local exclusive partner of TWI (British Institute of Welding Technology) and Seatag
Offshore Company (New Zealand). The Company offers internationally recognized
competency-based training, certification, professional qualifications, technical
services in many disciplines such as welding supervising engineers, cranes,
scaffolding skills training, welder training and international certification, offshore
safety training, etc. The year 2008 marked the breakthrough of PVD Training with
the opening of the high-tech welding training center at Quang Minh Industrial Zone,
Me Linh district, Ha Noi and the newly-built office complex, classrooms and worksite
at Dong Xuyen Industrial Zone, Vung Tau City. In 2008, PVD Training obtained
growth rate of nearly 70% compared to 2007 with a revenue of VND 33 billion and
net profit record of almost VND 7 billion together with the main duty that supplies
the professional experts for drilling industry.
PVD Technical Training & Certification

Joint Stock Company
(PVD Training)
BJ Services-PV Drilling
Joint Venture
(BJ - PVD)
A subsidiary of PV Drilling whereby the latter owns 49%

equity. BJ-PVD specializes in providing cementing,
stimulation, coiled tubing, Nitrogen pumping services,
refurbishment, maintenance services and procurement of
materials and equipment related to the above services. The
year 2008 continued to be an outstanding year of success
for BJ-PVD with revenue of approximately VND 420 billion
and net profit of VND 110 billion which contributed more
than VND 55 billion in profit for PV Drilling, 66.5% increase
from 2007.
23
PV Drilling
24
PV Drilling-Production Testers
Annual report 2008
International Company Limited

(PVD-PTI)
A subsidiary of PVD Logging whereby PVD Logging owns 51% equity. PVD-PTI provides
services to the phases of the exploration, appraisal, development and production of
the well services including: Producing, Processing, Renting Early Production Facilities
(EPF), Extended Well Testing (EWT), Well Testing Services including equipments,
Production Uplift, Well Processing, Development and Appraisal Well Clean-Ups, Well
Effluent Management and Clean-Up, Process Engineering and Equipments Rental. In
its first year of business, PV Drilling-PTI secured the first well-testing service contract
with Vietsopetro, promising potentials for the bright future. Currently, PTI is in the
investment process.
PV Drilling Tubulars
Management Company Limited
(PVD Tubulars Management)
A subsidiary of PVD Tech whereby PVD Tech owns 51%

equity. Established in October 2008, its main business
offers Total Tubular Management services and other
related services for OCTG products such as threading,
repair, maintenance, inspection, logistics services and
the importation and distribution of OCTG products. PVD
Tubulars Management is currently building a 3-hectare
worksite complex and an office at Phu My I Industrial Zone,
Ba Ria - Vung Tau province.
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PV Drilling
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PV DRILLING SIGNIFICANT
Annual report 2008
MILESTONES IN 2008
PV DRILLING I jack-up rig achieved more than PVD Tubulars Management – a joint venture of
2-year safety operations (LTI free) since the first PV Drilling and Marubeni Itochu company, started
delivery day in March 2007. operations on 7 October 2008.
PV DRILLING I jack-up rig broke the record of PV Drilling exceeded the profit target for 2008.
drilling in the deepest Granite basement with a total
depth of 6,526 meter in well 9-2-CNV-2P in Cuu
Long basin, Vietnam.
PV DRILLING 11 land rig gained the new Algeria PV Drilling was honored as one of the top ten
Meterage Record of 208.5 meter with Smith stocks in Vietnam by Standard & Poor’s, an
Bit-6’’K505BPX at Hamra Quartzite Formation, Algeria. international credit rating agency.
Slickline and Karota services performed successfully PV Drilling succeeded in capital mobilization for
for Thang Long JOC and Truong Son JOC. PV DRILLING III jack-up rig in the international
finance market.
ERP system – Phase 1 – Finance & Accounting PV Drilling conducted the merger of PVD Invest,
Management system applied efficiently since a subsidiary in which PV Drilling owned 51% of
1 January 2008. charter capital into PV Drilling, upon the approval
of merger plan at the Extraordinary Shareholders’
General Meeting on 9 November 2008.
2008 FINANCIAL
HIGHLIGHTS
TOTAL ASSETS (VND BILLION)

NET TANGIBLE ASSETS
REVENUE (VND BILLION )
PER SHARE (VND)
2008 3,729 2008 15,228

8,633
2007 2,739 2007 18,948
4,330
2006 1,349 2006 796
2,174
2005 1,072 2005 0
1,185
Net Tangible Assets per Share

Total Assets
PROFIT BEFORE TAX (VND BILLION) DEBT TO EQUITY RATIO
2008 929 2008 2,29
2007 580 2007 0,83
2006 162 2006 1,75
2005 73 2005 0,67
PROFIT AFTER TAX (VND BILLION) EARNINGS PER SHARE (VND)
2008 922 2008 7,431
2007 572 2007 6,192
2006 116 2006 1,712
2005 53
Financial highlights Unit 2008 2007 2006 2005

Revenue VND billion 3,729 2,739 1,349 1,072
Profit Before Tax VND billion 929 580 162 73
Profit After Tax VND billion 922 572 116 53
Debt to Equity Ratio Time 2.29 0.83 1.75 0.67
Net Tangible Assets per Share VND 15,228 18,948 796 N/A
Total Assets VND billion 8,633 4,330 2,174 1,185
Earnings per Share VND 7,431 6,192 1,712 N/A
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PV Drilling
28
2008 FINANCIAL
Annual report 2008
RESULTS SUMMARY
The year of 2008 is also a rapid and steady

development year of PV Drilling despite the fact
of common difficult economy.
2008 business performance summary
The success and developments of PV Drilling’s business performance in 2008 are reflected in the following financial
information:
FINANCIAL RESULTS Unit 2008 2007 2006 2005
Operating results
Revenue VND billion 3,729 2,739 1,349 1,072
Profit before tax VND billion 929 580 162 73
Profit after tax VND billion 922 572 116 53
Financial status
Equity VND billion 2,133 1,864 792 711
Minority Interest VND billion 491 497 - -
Total Assets VND billion 8,633 4,330 2,174 1,185
Total Liabilities VND billion 6,008 1,969 1,383 474
Perfomance indicators
Net Income Margin % 24.73 20.88 8.63 4.90
Earnings per Share VND 7,431 6,192 1,712 N/A
Number of Share Million 132.17 110.14 68.00 N/A
Dividends Ratio after Funds Provision % 49.80 38.51 14.00 N/A
Financial indicators
ROE (Return on Equity) % 46.14 43.07 15.50 12.88
ROE (Return on Chartered capital) % 74.31 61.92 17.12 53.94
ROA % 14.23 17.72 6.93 7.16
Quick Ratio Time 0.99 2.42 0.91 1.35
Debt to Equity Time 2.29 0.83 1.75 0.67
Note: The above figures were consolidated from Financial Statements of the following subsidiaries:
Head Office of PV Drilling
PV Drilling Division
PVD Logging Services Co., Ltd. (PVD Logging)
PVD Well Services Co., Ltd. (PVD Well Service)
PVD Offshore Services C., Ltd. (PVD Offshore)
PVD Trading & Technical Services Co., Ltd. (PVD Tech)
PVD Technical Training & Certification Joint Stock Co. (PVD Training)
Petrovietnam Drilling Investment Corporation (PVD Invest)
The above figures are also included profits from Joint Venture BJ-PV Drilling Co. and PV Drilling – Production Testers International Co., Ltd.
Revenue expansion of high-profit margin advanced technological
services to customers such as Well testing, Mud
Despite the volatile fluctuations of the world economic
logging and Wireline logging together with cost control
situation in 2008, PV Drilling’s revenue continues its
improvements also contributed to the increased profit
robust growth, increasing 36.2% from VND 2,739
of PV Drilling. Net profit margin increased from 20.9%
billion in 2007 to VND 3,729 billion in 2008, scoring
in 2007 to 24.7% in 2008.
124.3% of targeted.
Dividend
The strong increase in revenue is attributable to the
increase in operation efficiency of the two drilling rigs, The significant growth in revenue increased shareholder
of which the first Jack-up rig increased from 86.0% interest in 2008. Return on charter capital achieved
to 99.6% and the Land-rig increased from 94.0% to 74.3%, higher than last year by 12.1%. Earnings per share
99.0%. The continual operations of the first Jack-up increased to VND 7,431 per share in 2008, up 20% from
VND 6,192 per share in 2007. The dividend is calculated
rig and the increase of contracts awarded to provide
49.80% after the stipulated deduction of fund reserves, up
services to customers such as Thang Long, Truong
11.3% from the previous year.
Son, Cuu Long and Premier Oil also contributed to the
surge in revenue.
Assets and resources
Profitability As at end of 2008, PV Drilling’s total assets were VND
8,633 billion, higher than previous year by 99.38%,
PV Drilling achieved a remarkable net profit of VND 922
mainly due to the new investment of the two jack-up rigs
billion, a significant increase of 61.3% as compared
PV DRILLING II and PV DRILLING III.
to the previous year (VND 572 billion) and achieved
131.7% of targeted. Of the 2008 net profit of VND 922 30% of the above total assets were funded from
billion, 80% is contributed by the first Jack-up rig and shareholders and retained earnings and the remaining
Land-rig. The remaining is from other well services. In from trading credit and loan. In 2008, PV Drilling was
successfully approved a syndicated loan of USD 150
addition to the core drilling business contributions, the
million for the new jack-up rig PV DRILLING III with
a term of 6.5 years, in which USD 115 million was
sponsored from foreign banks such as HSBC, ANZ, and
REVENUE TREND (VND BILLION )
RBS and the rest from BIDV with competitive financial
2008 3,729 expenses. As at end of 2008, the total amount paid to
2007 2,739 KFELS contractor for the building of two drilling rigs PV
2006 1,349 DRILLING II and III was USD 211.1 millions, bearing
2005 1,072 53% of the total contract value.
tOTAL REVENUE
NET PROFIT TREND
3.729 BILLION
(VND BILLION)
2008 25% 922 VND

2007 21% 572
2006
9% 116 TOTAL PROFIT AFTER TAX
2005 5%
Profit After Tax

53
VND 922 BILLION

Net Profit Margin
29
PV Drilling
30
MARKET ANALYSIS AND

Annual report 2008
DEVELOPMENT STRATEGIES
FOR PV DRILLING in 2009
Market analysis
Regional and International Market Analysis Vietnam Market Analysis

PV Drilling recognizes that 2009 will be a more difficult According to ODS-Petro Data, the forecasted demand
and challenging year. The global financial crisis and for jack-up rigs in Vietnam is approximately 8 rigs for
the plunge of oil price had lead to the decline of oil and drilling plans that was projected prior to the beginning
gas exploration and production activities resulting in the half of the year 2008 (totally about 44 wells to be drilled
shrink in demand of drilling services. However, in spite of and started operations in 2009). Hence, there will be the
the economic situation in South East Asia and Vietnam, limit for the developments in domestic market in 2009.
the exploration and production activities are expected to
In view of budget reduction for oil and gas exploration
be moderately stable in the current conditions.
and production activities that leads to the decline
According to the specialists’ forecast reports, with the in oil and gas services demand as analyzed above,
fall in oil price, the reduction in budget for oil and gas PV Drilling is likely to experience moderate shrink in
exploration and production activities will continue for service demand. Currently, there are 7 jack-up and 2
the next year and gradual recovery can be expected to semi-submersible rigs operating in offshore Vietnam.
commence from the second quarter in 2009. US reported
the highest national oil exploration and production budget
cuts of 26% to USD 79 billion, and Canada reported Challenges to PV Drilling
23% to USD 22 billion as compared to 2008. However,
the budget reduction for oil exploration and production There will be more difficulties ahead for PV Drilling in its
activities in other countries was less acute. The reduction search for opportunities to expand customer base and
rate of about 6% from 2008 to USD 300 billion is after a new contracts. Besides, PV Drilling needs to strengthen
continuous growth of 9 years. This is due to the earlier its internal resources to be ready for the up-coming
implementation of the projects by many multi-national opportunities when the market enters recovery stage.
and national oil companies in the region. However, the This period will see a more rapid growth increase as
reduction will result in a rise in energy demands leading compared to the pre-crisis stage.
to the gradual recovery of the oil price at the end of
2009. Oil companies forecasted that there will be drilling
plans as the oil price moves toward stabilization in the
beginning of 2010.
Focus on traditional
and target customers
PV Drilling maintains its focus on traditional customers

for its drilling service who have proven to be significant
in the company’s development. They are high potential
customers with long-term drilling programs such
as JVPC, Hoang Long/ Hoan Vu JOC, Thang Long
JOC, Petronas, Vietgazprom, PVEP and Vietsopetro
among many others. The development of relationship
with these customers strengthens PV Drilling’s
ability to bring in more businesses for the Company.
PV Drilling also concentrates on building up
relationships with potential customers to actively
speed up the exploration and production activities in
Vietnam such as Phu Quy POC, Bach Dang POC,
Premier Oil, Chevron, Santos and companies with
demands for drilling service outside Vietnam.
For well and other services, other than the target customers
of drilling service, PV Drilling also targets contractors and
other customers operating from upstream to downstream
business in oil & gas industry. To prepare for the long-term
and future strategic developments as well as to enhance
PV Drilling position in the world market, the expansion of
services to overseas market is one of the targets of the
Company. The priority is to develop the foreign markets
in which Petrovietnam is performing exploration and
production activities or the markets that Petrovietnam has
expansion plans. The relationship between Petrovietnam
and the partners in these markets will be advantageous
for PV Drilling in establishing new businesses. PV Drilling
may embark in new markets by forming joint-ventures with
the local partners to exploit the customers base of these
local firms to tap the market potential.
31
PV Drilling
32
Annual report 2008
MARKET ANALYSIS
AND DEVELOPMENT STRATEGIES
FOR PV DRILLING IN 2009
Introduction of new high-tech services

with high RETURN ON INVESTMENT
One of the proposals of PV Drilling’s services development

is the provision of high-tech services with high return on
investment (ROI). Riding on the success of 2008, PV
Drilling will continue to offer new services such as oil
and gas sampling transfer and management, geology
predict, slickline, realtime rig-link, fabrication services
and steel structure building in 2009.
The expansion of new services will support PV Drilling

to gear toward the plan to provide integrated drilling
packages to customers. This development strategy
will extend the target market for PV Drilling, easing
entry into the specialized service sectors dominated
by foreign companies. This will strengthen the internal
resources of Vietnam Oil and Gas Industry which is in
accordance with the development strategy of PVN.
Focus on Marketing Plan in 2009
Following the recognition of target PV Drilling will establish a system to collect, analyze
customers, PV Drilling will focus on and share integrated customer and market information
within the company to understand and meet customers
the Marketing Plan to implement the
demand in a timely manner. The customer service
projected business strategy.
arrangement between subsidiaries and the headquarter
is placed in priority. This is key factor to increase the
effectiveness of customer service and the professional
image of PV Drilling.
PV Drilling will realign its customer service to focus on

customer satisfaction to enhance the service quality.
In particular, PV Drilling aims to give customers the
convenience of speedy and accurate transaction by
stringent tracking of contracts with the appointment of
only one department or unit to interact with the customer.
33
PV Drilling
34
MARKET ANALYSIS AND

Annual report 2008
DEVELOPMENT STRATEGIES
FOR PV DRILLING IN 2009
Enhance Corporate Governance efficiency

by applying Information Technology and
improving corporate governance system
As one of the top blue-chip IT implementation to develop and improve

the Corporate Governance System
companies in Vietnam, In 2008, PV Drilling marked its first milestone in IT
PV Drilling has been deployment with the official implementation of the
financial-accounting management system of ERP
enhancing the Corporate Oracle E-business Suite 11 in the Company.
Governance to raise The system contributes to the efficiencies in finance-

accounting management practices such as:
the business activities »» Professionalize accounting and financial activities
efficiency as well as to and enhance specialized ability of accounting and
financial staff.
increase value for PV »» Perform accounting management in the Company
Drilling’s investors and and help the BOM in decision making on the
Company’s operations.
shareholders. »» Provide tools in making Consolidated Financial
Statement of the whole company accurately in a
timely manner and in accordance with financial
»» Financial Consolidation »» Business Intelligence
regulations.
»» Follow the principles of VAS and create the

foundation in complying with the principles of
Receivables Financial IFRS, especially when PV Drilling prepares for
Management Analysis Payables Management
IPO plan overseas.
Cash Management Controls & Fixed Assets

Reports
Business Processes
Centralized
Management System
In addition, Drilling Division of PV Drilling has successfully Enhance Corporate Governance
applied the Computerized Maintenance Management efficiency by building up the Corporate
System - MAXIMO in 2008 with the main functions such
Governance system.
as: materials and equipments management, setting up
maintenance plans, enhance the control in materials and »» Build up accounting management and financial
equipments used in business activities of the drilling rigs. analysis system to support the decisions of the
Board of Management.
Continuing the development of the applied foundation
program which operated in 2008, PV Drilling will carry »» Intensify internal audit to provide financial information
on to implement the expansion of the modules of ERP transparently, clearly and accurately.
Oracle EBS 11i system (ERP Oracle Project-2nd stage)
»» Apply the financial tools to prevent currency risks
such as purchasing management module, project/contract
such as foreign exchange, interest rate to effectively
management module, human resources management
stabilize business activities.
module and connecting Maximo. Together with the
execution of the applied software systems, PV Drilling »» Vietnam and the global stock markets are currently
will concentrate on building new IT infrastructure; improve still in a challenging phase. Investors are facing with
the WAN system that connects all the subsidiaries of the the high levels of disbelief and skepticism as shares’
Corporation, and a satellite communication connection market price of listed companies decreased. As
with PV DRILLING I. such, for the year ahead, PV Drilling will prepare for
its overseas IPO plan to be ready when the economy
The development of IT in 2009 is an affirmed step towards
recovers to enhance the PVD’s share value.
the building of the Company’s Corporate Governance
system. This will help PV Drilling to improve the
management efficiency, enhance competitiveness and
information transparency as well as bridge the gap within
the same industry.
35
PV Drilling
36
Annual report 2008
PV DRILLING 2009 BUSINESS PLAN
Eventhough the financial and economic crisis is predicted to

be continuous in 2009, the downward of oil price will affect to
the Company’s revenue that causes the limit to the growth of
financial indicators, PV Drilling will always be expanding the
business activities for its long-term development.
Based on the oil price of approximately USD 50 per barrel,

the financials of PV Drilling in 2009 is budgeted as below:
Projected Business Performance:

Revenue VND 3,500 billion
Gross Profit VND 770 billion
Net Profit VND 700 billion
Investment Plan: VND 4,442 billion

Investment in PV DRILLING II & III jack-up rigs: VND 3,774 billion
(disbursement period)
Investment in drilling services equipment : VND 369 billion
Other investments : VND 299 billion
If the oil price hovers at around 70 USD per barrel, PV Drilling’s

targets will be forecasted as follows:
Revenue VND 4,000 billion

Gross Profit VND 884 billion
Net Profit VND 800 billion
PV Drilling remains confident in achieving its objectives in 2009,
given the modern technology infrastructures advantages,
qualified and experienced staffs, and the preferential support
given as a subsidiary of Petrovietnam.
37
PV Drilling
38
Annual report 2008
STRATEGIES FOR STEADY GROWTH

OF PV DRILLING AMIDST
THE VOLATILE ECONOMY IN 2009
The Vietnam economy has suffered from the impact of PV Drilling recommends the following strategies in
the global economic crisis in 2008, causing difficulties to face of the above difficulties to meet the objective of
many companies. According to the economists’ forecast, stabilizing the business in 2009 while preparing for
Vietnam economy’s growth rate in 2009 is unlikely future growth in 2010:
to improve due to the lack of profusion of domestic
and foreign capital. Vietnam is expected to face more For PV DRILLING I efficient operations: Continue
challenges in 2009 with rising unemployment rate, to maximize the operating efficiency of PV DRILLING
reduction in consumers’ purchasing power, and the I by reducing maintenance process time to increase
decrease in import and export turnover. the revenues, and lower the costs. PV DRILLING I
contributed less than 40% of the total revenue in 2008,
The global economic crisis has affected the drilling and but the profit was approximately 80% of the total profit
well services providers including PV Drilling. The business of PV Drilling. The gain was due to the increase in
performance is also affected by the sharp fall in oil price the operating efficiency of PV DRILLING I from 95%
causing a decrease in demand for drilling rigs and other to 99.5% in 2008. As a matter of fact, in 2009, the
drilling services. In 2008, the oil price of PetroVietnam operating efficiency maximization of PV DRILLING I will
averaged at about USD 102 per barrel while the oil price continue to be an important factor toward the increase of
rose to a record high of more than USD 147 per barrel. revenues, reduction in drilling rigs rental expenses, and
According to the forecast 2009, the average global crude improvement business performance of the Company.
oil price is expected to be in downward trend with the
price of USD 60 per barrel compared to the hit price in For the development of high tech services: In addition
2008. However, in South East Asia - PV Drilling’s target to the main traditional service such as drilling services,
market, the number of delayed projects is small as most manpower supply, oil spill response, PV Drilling will
of the projects had already been implemented when the concentrate on the development of high-tech services
oil price was low.
whereby PV Drilling will self-provide to raise higher For the Human Resources: PV Drilling will strengthen
profits and efficiency. Since its establishment, PV internal human resources by planning tailored training
Drilling has been focusing on expanding itself provision programs to develop and enhance the skills of the
capabilities by cooperating with foreign partners and management team, in particular for Vietnamese staff
investing in modern technologies to meet the market to gradually take the place of the foreign counterparts.
demand together with qualified personel recruitments The company will also boost the abilities of independent
and appropriate training policy to provide the services. businesses to reduce reliability on foreign partners for
The reality has proved that the above policy is all the high tech services. These solutions will form the base for
right track. An example of the successful solution is the long term and stable development of PV Drilling, as
the fact that PVD Logging, a subsidiary of PV Drilling, well as brand positioning of PV Drilling as a provider of
recorded a net profit of nearly 50% of its total profit high tech drilling and drilling-related services with high
in 2008 while its revenue from its high-tech services return on investment.
such as mud logging, slickline... was less than 20% of
the total revenue. For the Investment and Construction: To continue
control, reseach and evaluate all approved investment
For the Market: In addition to the local market, PV projects.
Drilling will expand its services overseas. Meanwhile, PV
+ For projects in progress: provide management
Drilling will participate in projects which PetroVietnam
supports to PVD Invest to assist in the building of PV
are implementing in Iraq, Venezuela and other
DRILLING II, and III rigs safely, qualitatively and on
countries. The international service expansion aligns
schedule, within the approved total budget to prevent
with the long-term development strategy of PV Drilling
time loss and materials wastage. Continue with other
in view of the globalization and Vietnam’s entry to
ongoing projects to complete on schedule benefitting
WTO. This solution aims to leverage on PetroVietnam
from the current lower cost.
for participation in its projects in countries that have
established good relations with Vietnam. + For the projects to be implemented: Priority
given to important projects with higher efficiency, while
For the Finance: 2008 recorded volatile fluctuations in eliminating unproductive and unfeasible projects.
the financial markets. Hence, PV Drilling needs to lower
the costs and increase in the profits by operating and Faster and stronger recovery can be expected after
managing effectively all financial resources such as cash the recession. PV Drilling will be prepared to take this
flow management, financial instruments implementation, opportunity to strengthen its developments through
cost control solutions for expenses reduction. long-term and strategic investment projects.
For the Information Technology: Riding on the success Apart from the strategies mentioned and the
of its ERP first phase implemention in 2009, PV Drilling will advantage as a subsidiary of PetroVietnam, PV Drilling
continue with the second phase by extending it to other will also have the support from the parent Company in
areas such as Project Management, HR Management, its participation in PetroVietnam’s drilling exploration and
and Purchasing. PV Drilling will also continue to promote production programs locally and internationally.
the successful application material management system
‘Maximo’, and other specialized applied systems in With the recent support from Vietnamese government
oil field to optimize materials management, minimize to assist local companies and key national industries
variable cost, and increase business efficiency. amidst the economic crisis, PV Drilling submits an
appeal to PetroVietnam to have the protectionism from
government on key businesses currenly shared by
foreign companies.
39
PV Drilling
40
INVESTOR
Annual report 2008
RELATIONS
Satisfying information demands
for investors and shareholders
is always the top priority of PV Drilling
As one of the blue-chips companies listed on Vietnam for discussion about financial indicators and company
Stocks Exchange, PV Drilling is responsible for the development strategies so that the investors can
interest of its local and foreign shareholders. Further evaluate investment opportunities in PVD.
to the requests of shareholders, financial consulting
Apart from the Annual Shareholders’ General Meeting
companies, management funds and the Press
held in March 2008, PV Drilling has organized other
regarding meeting and exchange information, PV
meetings with the investors to share information,
Drilling has held many meetings with shareholders,
exchange and receive constructive ideas from them to
financial consulting companies, management funds
enhance the efficiency in business operations as well
and the Press at PV Drilling‘s headquarters to inform
as to contribute to improve operation management and
them of the Company progress in 2008. Through
corporate governance of PV Drilling:
these meetings, PV Drilling was able to meet
investors’ requests to update and share all the related On 17 March 2009: met with major shareholders
information on business operations as well as open in Sheraton Hotel, District 1, Ho Chi Minh City
Please contact us for more information: PetroVietnam Drilling and Well Services Corporation
to update with business activities and company PVD Invest into PV Drilling and conversion ratio between
development strategies. PVDI share, capital contribution by PVD Invest’s
shareholders and PVD share.
On 21 August 2008: gathered with major
shareholders and some Investment Funds in Legend With the motto of “satisfying information demand for
Hotel, District 1, Ho Chi Minh City to discuss on the plan shareholders”, PV Drilling has received a high appraisal
of merging PVD Invest (owned 51% of charter capital by for cooperation, transparency and timeliness in public
PV Drilling) into PV Drilling. information related to its business activities from
shareholders. We can say the investor relations of PV
On 9 November 2008: held Extraordinary
Drilling is carried effectively and efficiently and this has
Shareholders’ General Meeting in Caravelle Hotel,
built up the trust and created the good image of Company
District 1, Ho Chi Minh City to approve the merging of
for local and foreign investors
Petro Vietnam
50.38%
Vietcombank
4.36%
PVFC
9.40%
Foreign shareholders
28.52%
Other shareholders
As of 20 March 2009
7.34%
41
4th Fl., Sailing Tower, 111A Pasteur, District 1, Ho Chi Minh City. PV Drilling
42
PUBLIC
Annual report 2008
RELATIONS
PetroVietnam Drilling
and Well Services Corporation
(PV Drilling) spread joy
and warmth to the social community.
In addition to the drive in business activities in 2008, PV Drilling continues to play a positive and active role in support
of charity through its many social activities and community development projects.
In 2008, PV Drilling donated 207 “Great Unity Houses” in HCMC, Ba Ria – Vung Tau, Tien Giang, Hau Giang and
Can Tho Provinces. The Company also actively supports funds for the poor, seniors, and victims of natural disasters
in provinces such as Lai Chau, Son La. The Thien Phuoc Center for Children with Disability, Truong Sa soldiers and
the Study Encouragement Society are also beneficiaries of PV Drilling.
Along with its community support activities in 2008, PV Drilling
also took part in sponsoring the musical evening “Everlasting
Green” in honor of the soldiers’ beauty of uniforms and in praise
of the ancestors noble traditions.
The sponsors of charity-social activities amounted to VND 3.7

billion in 2008.
Through its active participation in charity, social activities and

community development projects, PV Drilling is acknowledged
as a caring company with realistic actions and in time supports in
sharing difficulties with the society. These values expressed the
cultural splendor of PV Drilling, preserving the shared tradition of
the Vietnamese nation in general and PV Drilling in particular.
43
PV Drilling
FINAnCIAL STATEMENTS
01
STATEMENT OF THE
BOARD OF DIRECTORS
Annual report 2008
The Board of Directors of PetroVietnam Drilling and Well Services Corporation (“the Company”) and its subsidiaries
(“the Group”) presents this report together with the Group’s audited consolidated financial statements for the year
ended 31 December 2008.
THE BOARDS OF MANAGEMENT AND DIRECTORS
The members of the Boards of Management and Directors of the Group who held office during the year and at the
date of this report are as follows:
Board of Management
Mr. Do Dinh Luyen Chairman

Mr. Do Van Khanh Member
Mr. Tran Van Hoat Member
Mr. Pham Tien Dung Member
Mr. Nguyen Xuan Son Member
Mr. Nguyen Hong Nam Member
Mr. Dam Hai Giang Member
Board of Directors
Mr. Do Van Khanh Chief Executive Officer and President

Mr. Tran Van Hoat Vice President
Mr. Van Duc Tong Vice President
Mr. Luong Trong Diep Vice President
Mr. Pham Tien Dung Vice President
Mr. Ho Vu Hai Vice President
Ms. Ho Ngoc Yen Phuong Vice President
BOARD OF DIRECTORS’ STATEMENT OF RESPONSIBILITY
The Board of Directors of the Group is responsible for preparing the consolidated financial statements of each year,
which give a true and fair view of the financial position of the Group and of its results and cash flows for the year.
In preparing these consolidated financial statements, the Board of Directors is required to:
• select suitable accounting policies and then apply them consistently;

• make judgments and estimates that are reasonable and prudent;
• state whether applicable accounting principles have been followed, subject to any material departures
disclosed and explained in the consolidated financial statements;
• prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume
that the Group will continue in business; and
• design and implement an effective internal control system for the purpose of properly preparing the financial
statements so as to minimize errors and frauds.
STATEMENT OF THE
BOARD OF DIRECTORS
The Board of Directors is responsible for ensuring that proper accounting records are kept, which disclose, with
reasonable accuracy at any time, the financial position of the Group and to ensure that the consolidated financial
statements comply with Vietnamese Accounting Standards, Vietnamese Accounting System and prevailing
accounting regulations in Vietnam. The Board of Directors is also responsible for safeguarding the assets of the
Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Board of Directors confirms that the Group has complied with the above requirements in preparing these
consolidated financial statements.
For and on behalf of the Board of Directors,
Do Van Khanh
Chief Executive Officer and President
20 March 2009
02
PV Drilling
03
AUDITORS’
REPORT
Annual report 2008
To: The shareholders of PetroVietnam Drilling and Well Services Corporation
We have audited the accompanying consolidated balance sheet of PetroVietnam Drilling and Well Services
Corporation and its subsidiaries (“the Group”) as at 31 December 2008, and the related consolidated statements of
income and cash flows for the year ended 31 December 2008. The accompanying consolidated financial statements
are not intended to present the financial position, results of operations and cash flows in accordance with accounting
principles and practices generally accepted in countries and jurisdictions other than Vietnam.
Respective Responsibilities of the Board of Directors and Auditors
As stated in the Statement of the Board of Directors on pages 1 and 2, these consolidated financial statements are
the responsibility of the Group’s Board of Directors. Our responsibility is to express an opinion on these consolidated
financial statements based on our audit. The consolidated financial statements of the Group for the year ended 31
December 2007 were audited by another auditor whose report dated 15 March 2008, expressed an unqualified
opinion on those consolidated statements.
Basis of Opinion
We have conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that
we plan and perform the audit to obtain reasonable assurance that the consolidated financial statements are free
of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall consolidated financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
Opinion
In our opinion, the accompanying consolidated financial statements give a true and fair view of, in all material
respects, the financial position of the Group as at 31 December 2008 and the results of its operations and its
cash flows for the year then ended in accordance with Vietnamese Accounting Standards, Vietnamese Accounting
System and prevailing accounting regulations in Vietnam.
Pham Van Thinh Le Dinh Tu

Partner Auditor
CPA Certificate No. D.0028/KTV CPA Certificate No. 0488/KTV
For and on behalf of
Deloitte Vietnam Company Limited
20 March 2009
Ho Chi Minh City, S.R Vietnam
CONSOLIDATED
BALANCE SHEET
As at 31 December 2008
FORM B 01-DN/HN
Unit: VND
ASSETS Codes Notes 31/12/2008 31/12/2007
A. CURRENT ASSETS 100 2,065,294,939,509 1,659,412,238,630
I. Cash and cash equivalents 110 4 687,790,226,960 521,940,969,552

1. Cash 111 195,122,511,791 216,560,814,654
2. Cash equivalents 112 492,667,715,169 305,380,154,898
II. Short-term financial investments 120 120,000,000,000 -

1. Short-term investments 121 5 120,000,000,000 -
III. Short-term receivables 130 1,056,945,202,837 1,040,549,863,371

1. Trade accounts receivable 131 1,043,280,603,366 711,618,493,896
2. Advances to suppliers 132 10,594,443,966 317,890,490,581
3. Other receivables 135 9,992,206,019 13,751,462,835
4. Provision for doubtful debts 139 (6,922,050,514) (2,710,583,941)
IV. Inventories 140 6 174,461,359,251 45,689,923,892

1. Inventories 141 176,136,789,143 45,689,923,892
2. Provision for devaluation of inventories 149 (1,675,429,892) -
V. Other short-term assets 150 26,098,150,461 51,231,481,815

1. Short-term prepayments 151 15,304,253,492 44,538,100,047
2. Value added tax deductibles 152 5,296,448,738 1,880,930,495
3. Other tax receivable from State budget 154 1,131,403,825 1,131,403,825
4. Other short-term assets 158 4,366,044,406 3,681,047,448
B. NON-CURRENT ASSETS 200 6,567,567,785,523 2,670,501,884,786
I. Fixed assets 220 6,272,698,419,123 2,534,750,434,064

1. Tangible fixed assets 221 7 2,012,619,597,868 2,086,943,238,148
- Cost 222 2,411,225,758,222 2,305,943,197,799
- Accumulated depreciation 223 (398,606,160,354) (218,999,959,651)
2. Intangible assets 227 8 146,890,993,792 26,876,863,689
- Cost 228 152,853,500,592 29,594,443,669
- Accumulated amortization 229 (5,962,506,800) (2,717,579,980)
3. Construction in progress 230 9 4,113,187,827,463 420,930,332,227
II. Long-term financial investments 250 245,120,496,730 77,522,144,578

1. Investments in joint ventures 252 11 74,976,402,570 18,983,644,578
2. Other long-term investments 258 12 172,694,670,160 58,538,500,000
3. Provision for diminution in value of long-term
financial investments 259 12 (2,550,576,000) -
III. Other non-current assets 260 46,320,363,334 54,372,236,144

1. Long-term prepayments 261 18,251,152,491 42,585,140,763
2. Deferred tax assets 262 13 10,789,332,833 50,925,160
3. Other non-current assets 268 17,279,878,010 11,736,170,221
IV. Goodwill 270 10 3,428,506,336 3,857,070,000
TOTAL ASSETS 280 8,632,862,725,032 4,329,914,123,416
The accompanying notes set out on pages 10 to 29 are an integral part of these consolidated financial statements
04
PV Drilling
05
CONSOLIDATED
BALANCE SHEET
Annual report 2008
FORM B 01-DN/HN
Unit: VND
RESOURCES Codes Notes 31/12/2008 31/12/2007
A. LIABILITIES 300 6,008,458,297,364 1,968,627,891,788
I. Current liabilities 310 3,892,009,691,143 672,053,506,293

1. Short-term borrowings and liabilities 311 14 1,983,809,569,154 109,174,332,022
2. Trade accounts payable 312 1,027,989,526,309 289,795,227,982
3. Advances from customers 313 263,742,121,539 8,757,884,541
4. Taxes and amounts payable to State budget 314 15 52,764,831,015 28,473,913,608
5. Payables to employees 315 29,827,800,836 11,853,166,660
6. Accrued expenses 316 232,344,501,167 163,535,827,594
7. Other current payables 319 301,531,341,123 60,463,153,886
II. Long-term liabilities 330 2,116,448,606,221 1,296,574,385,495

1. Other long-term payables 333 212,198,276,591 -
2. Long-term loans and liabilities 334 16 1,878,918,456,000 1,294,047,113,324
3. Provision for severance allowance 336 25,331,873,630 2,527,272,171
B. EQUITY 400 17 2,133,443,696,017 1,864,223,187,039
I. Shareholders’ equity 410 2,113,823,567,404 1,830,445,769,483

1. Charter capital 411 1,321,675,040,000 1,101,397,300,000
2. Share premium 412 201,153,600,000 201,153,600,000
3. Foreign exchange reserve 416 5,974,444,429 9,872,495,037
4. Investment and development funds 417 149,576,096,366 58,751,471,235
5. Financial reserve funds 418 79,911,387,199 34,554,623,567
6. Retained earnings 420 355,532,999,410 424,716,279,644
II. Other resources and funds 430 19,620,128,613 33,777,417,556

1. Bonus and welfare funds 431 19,620,128,613 33,777,417,556
C. MINORITY INTEREST 500 18 490,960,731,651 497,063,044,589
TOTAL RESOURCES 600 8,632,862,725,032 4,329,914,123,416
CONSOLIDATED
BALANCE SHEET
FORM B 01-DN/HN
OFF BALANCE SHEET ITEMS 31/12/2008 31/12/2007
1. Goods held under trust or for processing (VND) - 385,975,000

2. Foreign currencies - -
USD 7,451,168 1,974,709
EUR 16,497 11,263
GBP 560 560
DINARS 39,418,953 7,108,546

Do Van Khanh Doan Dac Tung
Chief Executive Officer and President Chief Accountant
20 March 2009
06
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07
CONSOLIDATED
INCOME STATEMENT
Annual report 2008
For the year ended 31 December 2008
FORM B 02-DN/HN
Unit: VND
ITEMS Codes Notes 2008 2007
1. Gross sales 01 19 3,728,745,990,771 2,738,605,347,000

2. Less deductions 02 - -
3. Net sales 10 3,728,745,990,771 2,738,605,347,000
4. Cost of goods sold 11 20 (2,520,350,855,424) (2,031,930,050,000)
5. Gross profit 20 1,208,395,135,347 706,675,297,000
6. Financial income 21 21 134,722,761,616 31,935,296,000
7. Financial expenses 22 22 (229,046,603,811) (85,302,968,000)
8. Selling expenses 24 (2,569,526,528) -
9. General and administration expenses 25 (233,633,166,666) (111,023,714,000)
10. Operating profit 30 877,868,599,958 542,283,911,000
11. Other income 31 18,547,726,680 6,897,459,000
12. Other expenses 32 (21,783,874,626) (1,804,342,000)
13. (Loss)/Profit from other activities 40 (3,236,147,946) 5,093,117,000
14. Income from investment in joint ventures 50 11 54,115,856,630 32,498,277,000
15. Profit before tax 60 928,748,308,642 579,875,305,000
16. Current tax expense 61 23 (6,410,872,603) (3,541,205,000)
17. Deferred tax income 62 13 10,738,407,833 50,925,000
18. Profit after tax 70 933,075,843,872 576,385,025,000
Attributable to:
- Minority interest 18 10,817,239,081 4,483,860,207
- The Group’s shareholders 17 922,258,604,791 571,901,164,793
19. Earnings per share 80 24 7,431 6,192

20 March 2009
CONSOLIDATED
CASH FLOW STATEMENT
FORM B 03-DN/HN
Unit: VND
ITEMS Codes 2008 2007
I. CASH FLOWS FROM OPERATING ACTIVITIES

1. Profit before tax 01 928,748,308,642 579,875,305,000
2. Adjustments for:
Depreciation and amortization 02 184,828,166,672 145,302,469,000
Provisions 03 8,437,472,465 2,138,564,000
Unrealized exchange losses/(gains) 04 71,131,901,609 (177,371,000)
Gains from investing activities 05 (127,655,819,245) (55,963,145,000)
Interest expense 06 78,731,366,518 76,857,114,000
3. Operating profit before movements in working capital 08 1,144,221,396,661 748,032,936,000
Increase in receivables 09 (19,239,343,144) (301,745,567,000)
(Increase)/Decrease in inventories 10 (130,446,865,251) 18,904,742,000
Increase/(Decrease) in accounts payable 11 951,605,571,545 (110,504,531,000)
Decrease/(Increase) in prepaid expenses 12 53,567,834,827 (56,692,609,000)
Interest paid 13 (83,494,260,164) (66,784,762,000)
Corporate income tax paid 14 (7,838,107,729) (15,961,613,000)
Other cash outflows 16 (121,204,945,459) (35,915,065,000)
Net cash from operating activities 20 1,787,171,281,286 179,333,531,000
II. CASH FLOWS FROM INVESTING ACTIVITIES

1. Acquisition of fixed assets and other long - term assets 21 (3,424,336,178,517) (1,495,497,086,000)
2. Investments in other entities 25 (288,334,569,325) (72,196,579,000)
3. Interest income and dividends received 27 122,775,262,896 43,329,741,000
Net cash used in investing activities 30 (3,589,895,484,946) (1,524,363,924,000)
III. CASH FLOWS FROM FINANCING ACTIVITIES

1. Proceeds from issuing stocks 31 7,817,040,913 1,017,353,600,000
2. Proceeds from borrowings 33 2,832,685,796,353 972,345,972,000
3. Repayments of borrowings 34 (504,049,558,528) (275,321,404,000)
4. Dividends paid 36 (367,521,865,001) -
Net cash from financing activities 40 1,968,931,413,737 1,714,378,168,000
Net increase in cash and cash equivalents 50 166,207,210,077 369,347,775,000
Cash and cash equivalents at beginning of year 60 521,940,969,552 152,593,194,552
Effect of changes in foreign exchange rates 61 (357,952,669) -
Cash and cash equivalents at end of year 70 687,790,226,960 521,940,969,552
08
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09
CONSOLIDATED
INCOME STATEMENT
Annual report 2008
FORM B 03-DN/HN
Supplemental non-cash disclosures
Cash outflows for purchases of fixed assets and other long-term assets during the year exclude an amount of VND
498,735,992,806 (2007: VND 296,019,592), representing an addition in fixed assets during the year that has not yet
been paid. Consequently, changes in accounts payable have been adjusted by the same amount.
Dividends paid during the year exclude an amount of VND 166,767,247,229 (2007: Nil), representing a dividend
declared during the year that has not yet been paid. Consequently, changes in accounts payable have been adjusted
by the same amount.
During the year 2008, the Group has declared dividends to its shareholders of VND 220,277,740,000 by translating
to shares capital. This transaction did not constitute movement of cash and, accordingly, was not presented in the
above statement.

20 March 2009
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
1. GENERAL INFORMATION
Structure of ownership
The Group consisted of PetroVietnam Drilling & Well Services Corporation (the “Company”) and its six (6)
subsidiaries and three (3) joint ventures as follows:
The Company
The Company is a joint stock company established in Vietnam in accordance with the Business Registration
Certificates No. 4103004335 dated 15 February 2006 and amendment on 18 June 2008 issued by the
Department of Planning and Investment (“DPI”) of Ho Chi Minh City. The Company has emerged from the
equitization of PetroVietnam Drilling and Well Services Company, a wholly-owned subsidiary of Vietnam Oil
and Gas Corporation (hereinafter referred as “PetroVietnam”).
Majority of the Company’s shares are held by PetroVietnam, who currently holds 50.38% of the Company’s
shares. The remaining 49.62% is held by other shareholders.
The Company’s registered head office is located at 2nd Floor, 12 Nam Ky Khoi Nghia Street, District 1, Ho
Chi Minh City, Vietnam.
The Subsidiaries
PetroVietnam Drilling Investment Corporation (“PVD Invest”), initially named Pacific Drilling Investment
Corporation, is a joint stock company established in Vietnam in accordance with the Business Registration
Certificate No. 4103006510 issued by the DPI of Ho Chi Minh City on 24 April 2007, as amended. PVD Invest’s
office is located at 8 Nguyen Hue Street, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City, Vietnam.
PVD Offshore Services Company Limited (“PVD Offshore”) is a one member limited liabilities company
established in Vietnam in accordance with Business Registration Certificate No. 4904000114 issued by the
DPI of Ba Ria Vung Tau Province on 29 June 2007. PVD Offshore’s registered office is located at 8 Hoang
Dieu Street, Ward 1, Vung Tau City, Ba Ria Vung Tau Province, Vietnam.
Well Services Company Limited (“PVD Well”) is a one member limited liabilities company established in
Vietnam in accordance with Business Registration Certificate No. 4104001468 issued by the DPI of Ho Chi
Minh City on 1 August 2007. PVD Well Services’s registered office is located at 37 Ton Duc Thang Street, Ben
Nghe District, Ho Chi Minh City, Vietnam.
Petroleum Well Logging Company Limited (“PVD Logging”) is a one member limited liabilities company
established in Vietnam in accordance with Business Registration Certificate No. 4104001513 issued by the
DPI of Ho Chi Minh City on 7 August 2007. PVD Logging’s registered office is located at 37 Ton Duc Thang
Street, Ben Nghe District, Ho Chi Minh City, Vietnam.
Petroleum Trading and Technical Services Company Limited (“PVD Tech”) is a one member limited liabilities
company established in Vietnam in accordance with Business Registration Certificate No. 4104001532 issued
by the DPI of Ho Chi Minh City on 9 August 2007. PVD TECH’s registered office is located at 21 Nguyen Trung
Ngan Street, Ben Nghe District, Ho Chi Minh City, Vietnam.
PVD Technical Training & Certification Joint Stock Company Limited (“PVD Training”), formerly Cuu Long
Company Limited, is a joint stock company established in Vietnam in accordance with Business Registration
Certificate No. 4903000441 issued by the DPI of Ba Ria Vung Tau Province on 12 October 2007, as amended.
PVD Training’s registered office is located at Dong Xuyen Industrial Zone, 30/4 Street, Rach Dua Ward, Vung
Tau City, Ba Ria Vung Tau Province, Vietnam.
The percentage of the Group’s ownership and the subsidiaries’ chartered capital and their capital contribution
status are further disclosed in note 10 of the notes to the consolidated financial statements.
10
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Annual report 2008
The Joint Ventures
BJ Services-PV Drilling Joint Venture Company Limited (“BJ-PVD”) is a joint venture company established in
Vietnam in accordance with Investment Certificate No. 49202100003 issued by the People’s Committee of
Ba Ria Vung Tau Province on 28 September 2006. BJ-PVD’s registered office is located at 65A 30/4 Street,
Thang Nhat Ward, Vung Tau City, Ba Ria Vung Tau Province, Vietnam.
PV Drilling Production Testers International Company Limited (“PVD-PTI”) is a joint venture company
established in Vietnam in accordance with Investment Certificate No. 491022000098 issued by the People’s
Committee of Ba Ria Vung Tau Province on 25 April 2008. PVD-PTI’s registered office is located at 65A 30/4
Street, Thang Nhat Ward, Vung Tau City, Ba Ria Vung Tau Province, Vietnam.
PetroVietnam Drilling Tubulars Management Company Ltd. (“PVD Tubulars”) is a joint venture company
established in Vietnam in accordance with Investment Certificate No. 492022000134 dated 07 October 2008
issued by Ba Ria-Vung Tau Industrial Zone Department. PVD Tubulars’s registered office is located in Phu My
1 Industrial Zone, Tan Thanh District, Ba Ria – Vung Tau province, Vietnam.
Principal activities
The Group, through the parent company and its subsidiaries and joint ventures, is principally engaged in
providing drilling services, well services, drilling rig, equipment, manpower, oil spill control service and other
related services in the oil and gas industry.
2. ACCOUNTING CONVENTION AND FISCAL YEAR
Accounting convention
The accompanying consolidated financial statements, expressed in Vietnam Dong (VND), are prepared
under the historical cost convention and in accordance with Vietnamese Accounting Standards, Vietnamese
Accounting System and prevailing accounting regulations in Vietnam.
Fiscal year
The Group’s fiscal year begins on 1 January and ends on 31 December.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies, which have been adopted by the Group in the preparation of these
consolidated financial statements, are as follows:
Estimates
The preparation of consolidated financial statements in conformity with Vietnamese Accounting Standards,
Vietnamese Accounting System and prevailing accounting regulations in Vietnam requires management to
make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures of
contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and enterprises
controlled by the Group up to 31 December each year. Control is achieved where the Group has the power
to govern the financial and operating policies of an investee enterprise so as to obtain benefits from its
activities.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated income
statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting
policies used in line with those used by the Group.
All inter-company transactions and balances between group enterprises are eliminated on consolidation.
Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group’s
equity therein. Minority interests consist of the amount of those interests at the date of the original business
combination (see below) and the minority’s share of changes in equity since the date of the combination.
Losses applicable to the minority in excess of the minority’s interest in the subsidiary’s equity are allocated
against the interests of the Group except to the extent that the minority has a binding obligation and is able to
make an additional investment to cover the losses.
Business combinations
On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are measured at their fair
values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable
net assets acquired is recognised as goodwill. Any deficiency of the cost of acquisition below the fair values
of the identifiable net assets acquired is credited to profit and loss in the period of acquisition.
The interest of minority shareholders is initially measured at the minority’s proportion of the net fair value of
the assets, liabilities and contingent liabilities recognized.
Interests in joint ventures
A joint venture is a contractual arrangement whereby the Group and other parties undertake an economic
activity that is subject to joint control, which is when the strategic financial and operating policy decisions
relating to the activities require the unanimous consent of the parties sharing control.
Where a group entity undertakes its activities under joint venture arrangements directly, the Group’s share of
jointly controlled assets and any liabilities incurred jointly with other ventures are recognized in the financial
statements of the relevant entity and classified according to their nature. Liabilities and expenses incurred
directly in respect of interests in jointly controlled assets are accounted for on an accrual basis. Income from
the sale or use of the Group’s share of the output of jointly controlled assets, and its share of joint venture
expenses, are recognised when it is probable that the economic benefits associated with the transactions will
flow to/from the Group and their amount can be measured reliably.
Joint venture arrangements that involve the establishment of a separate entity in which each venture has an
interest are referred to as jointly controlled entities. The Group reports its interests in jointly controlled entities
using the equity method of accounting.
Any goodwill arising on the acquisition of the Group’s interest in a jointly controlled entity is accounted for in
accordance with the Group’s accounting policy for goodwill arising on the acquisition of a subsidiary.
12
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Annual report 2008
Goodwill
Goodwill represents the excess of the cost of acquisition over the Group’s interest in the net fair value of the
identifiable assets, liabilities and contingent liabilities of a subsidiary, associate or jointly controlled entity at
the date of acquisition. Goodwill is recognized as an asset and is amortized on the straight-line basis over 10
years.
Goodwill arising on the acquisition of an associate is included within the carrying amount of the associate.
Goodwill arising on the acquisition of subsidiaries and jointly controlled entities is presented separately as
intangible asset in the balance sheet.
On disposal of a subsidiary, associate or jointly controlled entity, the attributable amount of unamortized
goodwill is included in the determination of the profit or loss on disposal.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid investments
that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value.
Provision for doubtful debts
Provision for doubtful debts is made for receivables that are overdue for three months or more, or when the
debtor is in dissolution, bankruptcy, or in similar difficulties.
Inventories
Inventories are stated at the lower of cost and net realizable value. Cost comprises direct materials and
where applicable, direct labor costs and those overheads that have been incurred in bringing the inventories
to their present location and condition. Cost is calculated using the weighted average method. Net realizable
value represents the estimated selling price less all estimated costs to completion and costs to be incurred in
marketing, selling and distribution.
The provision for devaluation of inventories is made for obsolete, damaged, or sub-standard inventories
which have a book value higher than net realizable value as at the balance sheet date.
Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less accumulated depreciation. The cost of purchased tangible fixed
assets comprises its purchase price and any directly attributable costs of bringing the assets to its working
condition and location for its intended use. The costs of self-constructed or manufactured assets are the
actual construction or manufacturing cost plus installation and test running costs. Tangible fixed assets are
depreciated using the straight-line method over their estimated useful lives as follows:
2008 2007
Years Years
Buildings and structures 6-10 6-10

Machinery and equipment 5-8 5-8
Other equipment 3-4 4-6
Motor vehicles 5-7 5-10
Drilling rigs 10-15 7-12
With effect from 1 January 2008, the Group’s management decided to change the Group’s depreciation rate
applied for drilling rigs, from 7 years to 10 years for the land-rig and from 12 years to 15 years for the jack-up
rig, respectively.
Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessee. All other leases are classified as operating leases.
The Group as lessor
Amounts due from lessees under finance leases are recorded as receivables at the amount of the Group’s net
investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant
periodic rate of return on the Group’s net investment outstanding in respect of the leases. Rental income from
operating leases is recognized on a straight-line basis over the term of the relevant lease. Initial direct costs
incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset
and recognized on a straight-line basis over the lease term.
The Group as lessee
Rentals payable under operating leases are charged to the income statement on a straight-line basis over the
term of the relevant lease. Benefits received and receivable as an incentive to enter into an operating lease
are also spread on a straight-line basis over the lease term.
Intangible assets and amortization
Intangible assets represent land use rights, goodwill upon equitization and computer software, that are stated
at cost less accumulated amortization.
The Goup’s land use right pertain to land for 1,322.8 square meter, located at No. 143 Tran Nao Street,
District 2, Ho Chi Minh City where the Company can use for indefinite time. Land use rights with indefinite
time are not amortized.
Goodwill upon equitization was recognized from the business revaluation of the Group’s business value upon
equitization. Goodwill is recognized as an asset and is amortized on a straight-line basis over 20 years.
Software is amortized on a straight-line basis over 5 years.
Construction in progress
Properties in the course of construction for production, rental or administrative purposes, or for the purposes
not yet determined, are carried at cost. Cost includes professional fees, and for qualifying assets, borrowing
costs dealt with in accordance with the Group’s accounting policy. Depreciation of these assets, on the same
basis as other property assets, commences when the assets are ready for their intended use.
Investments in securities
Investments in securities are recognized on a trade date basis and are initially measured at cost including
directly attributable transaction costs. At the subsequent reporting dates, investments in securities are
measured at cost, less the amount of diminution in value of investments in securities.
Provision for diminution in value of investments in security investments is made for freely traded securities
whose book value is higher than market price as at the balance sheet date.
Long-term prepayments
Long-term prepayments comprise small tools, spare parts, incurred during year which are expected to provide
future economic benefits to the Group for more than one year. These expenditures have been capitalized as
long-term prepayments and are amortized on a straight-line basis over 3 years.
14
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Annual report 2008
Revenue recognition
Revenue is recognized when the outcome of such transactions can be measured reliably and it is probable
that the economic benefits associated with the transactions will flow to the Group. Sales of goods are
recognized when goods are delivered and title has passed. Sales of services are recognized by reference to
the percentage of completion of the transaction at the balance sheet date.
Interest income is accrued on a time basis, by reference to the principal outstanding and at the interest applicable
rate.
Dividend income from investments is recognized when the Group’s right to receive payment has been
established.
Foreign currencies
Transactions arising in foreign currencies are translated at exchange rates ruling at the transaction date.
Monetary assets and liabilities denominated in foreign currencies are retranslated at the rates of exchange
prevailing on the balance sheet date. Exchange differences are recognized in the income statement.
Exchange differences arising from the translation of monetary assets and liabilities denominated in foreign
currencies, including realized and unrealized, during the construction stage of drilling rigs of PVD Invest, one
of the Group’s subsidiary, are recorded in the balance sheet under the account “foreign exchange differences”
in the owner’s equity section. Once the drilling rigs are completed, the accumulated realized exchange
differences will be charged to the income statement immediately while the accumulated unrealized exchange
differences will be amortized over 5 years.
For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s
foreign operations (including comparatives) are expressed in the local currency using exchange rates
prevailing on the balance sheet date. Income and expense items (including comparatives) are translated at
the average exchange rates for the period, unless exchange rates fluctuated significantly during that period,
in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if
any, are classified as equity and transferred to the Group’s translation reserve. Such translation differences
are recognized in the income statement in the period in which the foreign operation is disposed of.
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which
are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are
added to the cost of those assets, until such time as the assets are substantially ready for their intended
use or sale. Investment income earned on the temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the cost of those assets.
All other borrowing costs are recognised in the income statement when incurred.
Provisions
Provisions are recognized when the Group has a present obligation as a result of a past event, and it is
probable that the Group will be required to settle that obligation. Provisions are measured at the management’s
best estimate of the expenditure required to settle the obligation at the balance sheet date.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported
in the income statement because it excludes items of income or expense that are taxable or deductible in
other years (including loss carried forward, if any) and it further excludes items that are never taxable or
deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted by the
balance sheet date.
Deferred tax is recognized on significant differences between carrying amounts of assets and liabilities in the
consolidated financial statements and the corresponding tax bases used in the computation of taxable profit
and is accounted for using balance sheet liability method. Deferred tax liabilities are generally recognized for
all temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable
profit will be available against which deductible temporary differences can be utilized.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or
the asset realized. Deferred tax is charged or credited to profit or loss, except when it relates to items charged
or credited directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax
assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority
and the Group intends to settle its current tax assets and liabilities on a net basis.
The determination of the tax currently payable and deferred tax is based on the current interpretation of tax
regulations. However, these regulations are subject to periodic variation and their ultimate determination
depends on the results of the tax authorities’ examinations.
Other taxes are paid in accordance with the prevailing tax laws in Vietnam.
4. CASH AND CASH EQUIVALENTS
31/12/2008 31/12/2007
VND VND
Cash on hand 1,325,160,265 997,324,244

Cash in bank 193,785,462,026 214,599,438,188
Cash in transit 11,889,500 964,052,120
Cash equivalents 492,667,715,169 305,380,155,000
687,790,226,960 521,940,969,552
5. SHORT-TERM INVESTMENTS
Short-term investments represent the bank deposit by VND with recoverability term of one year or less.
16
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Annual report 2008
6. INVENTORIES
31/12/2008 31/12/2007
VND VND
Goods in transit 7,333,502,107 6,989,274,000

Raw materials 70,763,705,102 21,127,565,000
Tools and supplies 1,594,368,301 9,122,179,000
Work in progress 93,594,244,636 8,173,423,892
Merchandise 2,023,885,718 277,482,000
Goods on consignment 827,083,279 -
176,136,789,143 45,689,923,892
Provision for devaluation of inventories (1,675,429,892) -
174,461,359,251 45,689,923,892
7. TANGIBLE FIXED ASSETS

Buildings and Machinery and Office Motor
structures equipment Equipment Vehicles Others Total
VND VND VND VND VND VND
COST
As at 1/1/2008 21,687,230,934 166,212,381,965 18,010,855,938 18,310,870,999 2,081,721,857,963 2,305,943,197,799
Additions 857,934,873 67,140,027,890 7,636,473,153 2,404,345,436 15,083,776,824 93,122,558,176
Transfer from
construction in
progress 14,026,605,067 - - - - 14,026,605,067
Others increase 849,310,532 - 370,977,966 6,073,932 - 1,226,362,430
Disposals (297,532,856) (276,050,565) (859,360,815) (568,926,886) - (2,001,871,122)
Other decrease - (720,116,662) (78,832,421) (292,145,045) - (1,091,094,128)
As at 31/12/2008 37,123,548,550 232,356,242,628 25,080,113,821 19,860,218,436 2,096,805,634,787 2,411,225,758,222
ACCUMULATED DEPRECIATION
As at 1/1/2008 3,357,289,084 73,414,068,600 7,934,451,603 8,283,348,013 126,010,802,351 218,999,959,651
Charge for the year 5,031,294,683 21,127,928,172 3,713,765,505 2,046,278,082 149,658,417,854 181,577,684,296
Eliminated from
disposals (258,411,224) (276,050,565) (795,874,465) (568,926,886) - (1,899,263,140)
Other decrease - (72,220,453) - - - (72,220,453)
As at 31/12/2008 8,130,172,543 94,193,725,754 10,852,342,643 9,760,699,209 275,669,220,205 398,606,160,354
NET BOOK VALUE
As at 31/12/2008 28,993,376,007 138,162,516,874 14,227,771,178 10,099,519,227 1,821,136,414,582 2,012,619,597,868
As at 31/12/2007 18,329,941,850 92,798,313,365 10,376,419,396 9,727,507,925 1,955,711,055,612 2,086,943,238,148
As described in note 3 above, with effect from 1 January 2008, the Group’s management decided to change
the Group’s depreciation rate applied for drilling rigs, from 7 years to 10 years for the land-rig and from 12
years to 15 years for the jack-up rig, respectively. The Group’s management believes that the application of
new depreciation rates reflect more accurately the operation of the business as well as the utilization rate of
these rigs. Had the old depreciation rate been applied, depreciation charge for these rigs for the year ended
31 December 2008 would have increased by approximately VND 46 billion and the profit for the year ended
would have decreased by the same amount.
8. INTANGIBLE ASSETS
Land userights Others Total

VND VND VND
COST
As at 1/1/2008 - 29,594,443,669 29,594,443,669
Additions 109,833,329,400 13,436,315,800 123,269,645,200
Others increase - 9,411,723 9,411,723
Others decrease - (20,000,000) (20,000,000)
As at 31/12/2008 109,833,329,400 43,020,171,192 152,853,500,592
ACCUMULATED AMORTIZATION
As at 1/1/2008 - 2,717,579,980 2,717,579,980
Charge for the year - 3,250,482,376 3,250,482,376
Other decrease - (5,555,556) (5,555,556)
As at 31/12/2008 - 5,962,506,800 5,962,506,800
NET BOOK VALUE

As at 31/12/2008 109,833,329,400 37,057,664,392 146,890,993,792
As at 31/12/2007 - 26,876,863,689 26,876,863,689
9. CONSTRUCTION IN PROGRESS
31/12/2008 31/12/2007
VND VND
Drilling Jack-up rig II 1,400,442,580,427 404,389,840,014

Drilling Jack-up rig III 2,689,476,352,614 -
Others 23,268,894,422 16,540,492,213
4,113,187,827,463 420,930,332,227
During the year, the Group has capitalized borrowing costs amounting to VND 68,132,958,892 (2007: VND
21,532,510,000). These are costs in connection with the loans that have been entered to finance for constructing
the Group’s drilling rigs.
10. INVESTMENTS IN SUBSIDIARIES

Details of the Group’s subsidiaries at 31 December 2008 are as follows:
Registered charter capital Contributed charter capital Percent

31/12/2008 31/12/2007 31/12/2008 31/12/2007 of interest
Name of subsidiaries VND VND VND VND %
PVD Invest 1,000,000,000,000 1,000,000,000,000 510,000,000,000 510,000,000,000 51

PVD Offshore 80,000,000,000 80,000,000,000 57,640,139,096 53,942,337,123 100
PVD Well Services 50,000,000,000 50,000,000,000 804,342,798 804,342,798 100
PVD Logging 50,000,000,000 50,000,000,000 50,000,000,000 30,930,540,265 100
PVD Tech 50,000,000,000 50,000,000,000 50,000,000,000 50,000,000,000 100
PVD Training 22,334,500,000 11,755,000,000 15,962,691,000 6,970,091,000 51
The Group has a plan to merge PVD Invest, its subsidiary, into the Company. The general shareholders meeting of the
Company has approved the plan. The merger transaction is expected to be completed in the 2nd quarter of 2009.
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On 12 August 2007, the Group acquired 51% interest of PVD Training, formerly Cuu Long Company Limited,
for a consideration of VND 6,970,091,000. The acquisition generated a positive goodwill for the Group
amounting to VND 4,285,636,640. The movement in goodwill during the year is as follows:
Goodwill
VND
COST
As at 1/1/2008 4,285,636,640
As at 31/12/2008 4,285,636,640
ACCUMULATED AMORTIZATION
As at 1/1/2008 428,566,640
Charge for the year 428,563,664
As at 31/12/2008 857,130,304
NET BOOK VALUE

As at 31/12/2008 3,428,506,336
As at 31/12/2007 3,857,070,000
11. INVESTMENTS IN JOINT VENTURES

Summarized financial information in respect of the Group’s joint ventures is set out below:
Registered charter Contributed charter Percent

capital capital of interest
Name of joint ventures USD VND %
BJ-PVD 1,000,000 7,880,670,000 49

PVD-PTI 4,000,000 34,238,560,029 51
PVD Tubulars 3,500,000 20,271,435,771 51
The Group’s share of joint ventures’ profit and investment value:
Cost of investment Share’s profit/(loss) Profit received

as at 31/12/2008 in 2008 in 2008 As at 31/12/2008
VND VND VND %
BJ-PVD 7,880,670,000 55,767,447,964 (41,530,119,860) 22,117,998,104

PVD-PTI 34,238,560,029 (1,651,591,334) - 32,586,968,695
PVD Tubulars 20,271,435,771 - - 20,271,435,771
62,390,665,800 54,115,856,630 (41,530,119,860) 74,976,402,570
12. OTHER LONG-TERM FINANCIAL INVESTMENTS
31/12/2008 31/12/2007
VND VND
Government bonds 44,538,500,160 44,538,500,000

Investment certificates - Vietnam blue-chips fund (VFMVF4) 4,738,170,000 -
Shares of PV Shipyard 8,000,000,000 8,000,000,000
Shares of Petro Land 20,000,000,000 6,000,000,000
Shares of Sao Mai - Ben Dinh 95,418,000,000 -
Provision for diminution in value of long-term investments (2,550,576,000) -
170,144,094,160 58,538,500,000
The provision represents the diminution in value of listed investments certificate of VFMVF4. For other long-
term investment, the Group’s management believes that the market price of these investments has exceeded
its cost; hence, no provision for diminution in value of these investments is considered necessary.
13. DEFERRED TAX ASSETS
The following are the major deferred tax assets recognized by the Group, and the movements thereon, during
the current and prior reporting periods.
Accruals and other Unrealized foreign

provisions exchange losses Total
VND VND VND
Credit to profit for the year 50,925,000 - 50,925,160

As at 31 December 2007 50,925,000 - 50,925,160
Credit to profit for the year 4,643,582,340 6,094,825,493 10,738,407,833
As at 31 December 2008 4,694,507,340 6,094,825,493 10,789,332,833
14. SHORT-TERM BORROWINGS AND LIABILITIES
31/12/2008 31/12/2007
VND VND
Short-term loans 1,762,464,258,050 -

Current portion of long-term loans (note 16) 221,345,311,104 109,174,332,022
1,983,809,569,154 109,174,332,022
Details of short-term loans are follows:
31/12/2008 31/12/2007
VND VND
JP Morgan 408,296,850,000 -
DBS Bank Limited 471,111,750,000 -
BIDV 513,299,595,000 -
Vietcombank 55,681,563,050 -
ABN AMRO N.V. Bank (“ABN-AMRO”) 314,074,500,000 -
1,762,464,258,050 -
Short-term loan from JP Morgan represents a short term credit facility with total amount of USD 24,050,000
received by PVD Invest to finance for the payments to the Contractor, Keppel Fels Limited. The principal
had been fully repaid on 20 January 2009. The loan bears interest at the rate of LIBOR three-month plus a
marginal interest rate.
Short-term loan from DBS Bank Limited represents a short term bridging loan of up to USD 27,750,000 received
by PVD Invest to finance for the payments to the Contractor, Keppel Fels. This loan had been partially repaid with
amount of USD 18,500,000 on 13 March 2009, the outstanding balance is expected to be paid on 30 March 2009.
The loan bears interest at the rate of SIBOR six-month plus a marginal interest rate.
Short-term loan from BIDV represents the short-term loans with total amount of USD 30,235,000 received
by PVD Invest to finance for the payments to the Contractor, Keppel Fels Limited. This loan is secured by a
guarantee letter issued by the Group.
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Annual report 2008
Short-term loans from Vietcombank represent a short-term credit facility in the form of letter of credit in
supplement working capital for PVD Tech, which is guaranteed by the Group, the loan bears interest at fixed
rate and had been fully repaid on 13 January 2009.
Short-term loan from ABN-AMRO bank represents the short-term credit facility with total amount of USD
18,500,000 received by the Group in supplement working capital. The loan bears interest at the fixed rate and
had been fully repaid on 24 February 2009.
15. TAXES AND AMOUNTS PAYABLE TO STATE BUDGET
31/12/2008 31/12/2007
VND VND
Value added tax 33,198,049,613 16,377,812,202

Import tax 1,543,772 -
Corporate income tax 1,632,225,298 3,059,460,424
Personal income tax 12,615,945,880 5,218,664,112
Withholding tax 5,317,066,452 3,720,646,426
Other taxes - 97,330,444
52,764,831,015 28,473,913,608
16. LONG-TERM LOANS AND LIABILITIES
31/12/2008 31/12/2007
VND VND
Long-term loans 2,100,263,767,104 1,403,221,445,346

Current portion of long-term loans (note 14) (221,345,311,104) (109,174,332,022)
1,878,918,456,000 1,294,047,113,324
Details of long-term loans are as follows:
31/12/2008 31/12/2007
VND VND
Vietcombank 1,043,892,165,924 1,155,965,409,396

PVFC 213,134,775,525 247,256,035,950
BIDV 843,236,825,655 -
2,100,263,767,104 1,403,221,445,346
The Group had entered into a long-term loan agreement with Vietcombank for USD 80,237,605 to finance its
Mobile Offshore Self-elevating Cantilever Drilling Jack-up Rig 90 meter water depth Project. The duration of
the loan is 109.5 months (amended from the original duration of 146.5 months) from the first drawndown date
including a grace period of 25.5 months. This loan will be repayable on semi-annual installments for 84 months
after the grace period. This loan is guaranteed by PetroVietnam, the Group’s major shareholder, and bears
interest at the rate of SIBOR six-month plus a marginal interest rate. Interest shall be accrued to the principal
every six-month during the grace period.
On 13 November 2006, the Group also entered into a long-term loan agreement with PVFC, a related party,
for USD 18,599,000 to finance its acquisition of land drilling rig. The duration of the loan is 84 months from
the first drawdown date, including a grace period of 12 months for both principal and interest. This loan is
secured by the assets acquired from the loan at cost of VND 336,081,823,970 and carrying amount as at 31
December 2008 of VND 336,081,823,970 (2007: VND 336,081,823,970). This loan bears interest at SIBOR
six-month plus a marginal interest rate. Interest applies every three-month for outstanding amount in arrears.
This loan is repayable on 12 semi-annual installments starting from 13 May 2008.
On 31 December 2007, the Group also entered into a long-term syndicated loan agreement with BIDV, PVFC
and Eximbank for USD 155,000,000 to finance its Mobile Offshore Self-elevating Cantilever Drilling Jack-up
Rig II Project. The duration of the loan is 132 months from the first drawdown date, including a grace period
of 24 months for both principal and interest. This loan is secured by the assets acquired from the loan with
a carrying value of VND 1,400,442,580,427 (2007: VND 404,389,840,014). This loan bears interest at the
interest rate of deposit of 12 months by USD which is calculated on average interest rates of syndicated credit
institutions plus a marginal interest rate and it is not exceeding a fixed rate which has been agreed with these
credit institutions. Interest applies every three-month for outstanding amount in arrears. This loan is repayable
on 18 semi-annual installments starting from 10 July 2011. As at 31 December 2008, unused balance of this
loan which is available for withdrawn was USD 107,059,000.
On 8 December, 2008, the Group entered into a syndicated long-term loan with ABN AMRO Bank N.V.,
Australia and New Zealand Banking Group Limited, and The Hong Kong and Shanghai Banking Corporation
Limited which were subsequently joined by Oversea-Chinese Banking Corporation Limited; First Commercial
Bank; Far East National Bank and Land Bank of Taiwan for USD 115 millions to finance for the repayment
of short-term bridging loans and payments to the Contractor Keppel Fels related to constructing the Drilling
Jack-up Rig III Project. This loan is guaranteed by PetroVietnam. As at the balance sheet date, the Group has
not withdrawn from this loan.
Long-term loans are repayable as follows:
31/12/2008 31/12/2007
VND VND
On demand or within one year 221,345,311,104 109,174,332,022

In the second year 513,349,711,104 109,174,332,022
In the third to fifth years inclusive 1,191,586,717,242 327,522,996,066
After five years 173,982,027,654 857,349,785,236
2,100,263,767,104 1,403,221,445,346
Less: Amount due for settlement within 12 months
(shown under current liabilities) (221,345,311,104) (109,174,332,022)
Amount due for settlement after twelve months 1,878,918,456,000 1,294,047,113,324
17. EQUITY
According to the Group’s amended Business Registration Certificate, the charter capital is VND
1,321,675,040,000 (2007: VND 1,101,397,300,000).
The Group’s share par value and number of shares as follows:
31/12/2008 31/12/2007
VND VND
Authorized 132,167,504 110,139,730

Shares issued and fully contributed 132,167,504 110,139,730
Par value (VND) 10,000 10,000
The Group has one class of ordinary share which carry no right to fixed income. The shareholders of ordinary
shares are entitles to receive dividends as declared from time to time and are entitled to one vote per share at
the Group’s shareholders meetings. All shares rank equally with regard to the Company’s residual assets.
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Annual report 2008
31/12/2008 31/12/2007
VND VND
Value of shares held by Petro Vietnam 665,856,000,000 554,880,000,000

Value of shares held by other shareholders 655,819,040,000 546,517,300,000
1,321,675,040,000 1,101,397,300,000
Movement of shareholders’ equity and other funds during the year were as follows:
Foreign
Financial Investment and exchange Bunus and welfare
Charter capital Share premium Retained earnings reserves fund development fund differences fund Total
VND VND VND VND VND VND VND VND
As at 1/1/2007 680.000.000.000 - 86.230.063.353 5.805.723.856 11.611.447.710 - 7.944.352.478 791.591.587.397
Paid-in capital 421.397.300.000 201.153.600.000 - - - - - 622.550.900.000

Profit for the year - - 424.166.216.291 28.748.899.711 56.660.023.525 - 62.326.025.266 571.901.164.793
Other increases - - - - - 9.872.495.037 - 9.872.495.037
Dividends (85.680.000.000) (85.680.000.000)
Other decreases (9.520.000.000) (36.492.960.188) (46.012.960.188)
As at 31/12/2007 1.101.397.300.000 201.153.600.000 424.716.279.644 34.554.623.567 58.751.471.235 9.872.495.037 33.777.417.556 1.864.223.187.039
Stock dividends 220.277.740.000 - (220.277.740.000) - - - - -

Foreign exchange
differences - - - - - (3.898.050.608) - (3.898.050.608)
Profit for the year - - 922,258,604,791 - - - - 922,258,604,791
Dividends - - (534.289.112.230) - - - - (534.289.112.230)
Funds distributions - - (236,875,032,795) 45.356.763.632 90.824.625.131 - 100,693,644,032 -
Bonus and welfare
fund untilization - - - - - (114,850,932,975) (114,850,932,975)
As at 31/12/2008 1.321.675.040.000 201.153.600.000 355,532,999,410 79.911.387.199 149.576.096.366 5.974.444.429 19.620.128.613 2.133.443.696.017
During the year, the Group’s shareholders have decided to increase its charter capital from VND
1,101,397,300,000 to VND 1,321,675,040,000 by issuing additional 22,027,774 shares to existing shareholders
using its retained earnings. This was subsequently approved by the Planning Investment Department of Ho
Chi Minh City in its Business Registration Certificate No. 4103004335 dated 18 June 2008.
As at 31 December 2008, the Group temporarily appropriated a part of the 2008 consolidated profit after tax
for three funds which are Financial Reserve Fund, Investment and Development Fund and Bonus and Welfare
Fund in accordance with the Group’s Charter. The final amounts of such appropriations will be determined
and approved by the shareholders in the general annual shareholders meeting.
During the year, the Group declared and paid total dividends of VND 754,566,852,230 by issuing additional
22,027,774 shares and VND 534,289,112,230 by cash, of that VND 330,418,760,000 was dividends declared
and paid from the profit of 2008 at 25% per share.
Details movement of foreign exchange difference:
Exchange rate Exchange rate

difference in translating difference during
foreign operation construction stage
(Algeria Branch) (PVD Invest) Total
VND VND VND
As at 1 January 2007 - - -
Additions 9,872,495,037 - 9,872,495,037
As at 31 December 2007 9,872,495,037 - 9,872,495,037
Additions 18,395,662,657 (43,713,163,264) (25,317,500,607)
Attributable to minority interest 21,419,449,999 21,419,449,999
As at 31 December 2008 28,268,157,694 (22,293,713,265) 5,974,444,429
18. MINORITY INTEREST

Minority interest presents the minority’s portion in net assets value and income statement of PVD Invest
and PVD Training.
Rate of minority interest was calculated as follow:
PVD Invest PVD Training
Charter capital of subsidiaries 1,000,000,000,000 21,511,660,000

Including:
Distributed capital of the Group 510,000,000,000 11,390,620,000
Distributed capital of Minority interest 490,000,000,000 10,121,040,000
Rate of minority interest 49.00% 47.05%
Minority interest in net asset as at 31 December 2008:
PVD Invest PVD Training Total

VND VND VND
Total assets 4,316,397,862,116 28,978,774,152 4,345,376,636,268

Total liabilities (3,337,366,392,387) (5,098,797,327) (3,342,465,189,714)
Net assets 979,031,469,729 23,879,976,825 1,002,911,446,554
Details as follow:
Charter capital 1,000,000,000,000 21,511,660,000 1,021,511,660,000
Other funds (41,037,957,932) 323,444,771 (40,714,513,161)
Retained earnings 20,069,427,661 2,044,872,054 22,114,299,715
Minority interest 479,725,420,167 11,235,311,484 490,960,731,651

Details as follow:
Charter capital 490,000,000,000 10,121,040,000 500,121,040,000
Other funds (20,108,599,387) 152,177,817 (19,956,421,570)
Retained earnings 9,834,019,554 962,093,667 10,796,113,221
Minority interest in operating result for the year ended 31 December 2008:
PVD Invest PVD Training Total

VND VND VND
Profit for the year 15,757,342,990 6,580,660,964 22,338,003,954

Minority interest of operating result 7,721,098,065 3,096,141,016 10,817,239,081
19. GROSS SALES
2008 2007
VND VND
Sale of goods 706,391,540,167 795,666,626,000

Sale of drilling services 1,503,016,439,145 936,390,848,000
Sale of well services and others 1,519,338,011,459 1,006,547,873,000
3,728,745,990,771 2,738,605,347,000
Including in the above sales is the sale of drilling services from the land-rig in Algeria with amount of
VND 142,027,947,079 (2007: VND 81,910,009,240). Currently, the service contract has been temporary
terminated from 25 July 2008.
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Annual report 2008
20. COST OF GOODS SOLD
2008 2007
VND VND
Cost of goods sold 663,203,344,102 776,543,544,000

Cost of drilling services 605,585,984,198 497,162,687,000
Cost of well services and others 1,251,561,527,124 758,223,819,000
2,520,350,855,424 2,031,930,050,000
Production cost by nature
2008 2007
VND VND
Raw materials and consumables 1,136,690,199,021 808,917,086,000

Labor cost 426,668,529,919 204,194,306,000
Depreciation and amortization 165,842,679,055 144,871,022,000
Out-sourced services 697,254,289,649 796,904,412,000
Other expenses 93,895,157,780 77,043,224,000
2,520,350,855,424 2,031,930,050,000
21. FINANCIAL INCOME
2008 2007
VND VND
Interest income 73,539,962,615 23,963,583,000

Unrealized foreign exchange gain 4,129,326,936 -
Realized foreign exchange gain 56,666,398,238 -
Other financial income 387,073,827 7,971,713,000
134,722,761,616 31,935,296,000
22. FINANCIAL EXPENSES
2008 2007
VND VND
Interest expense 78,731,366,518 76,857,114,000

Unrealized foreign exchange loss 75,261,228,545 -
Realized foreign exchange loss 72,264,054,767 -
Provision for decline in value of investments 2,550,576,000 -
Other financial expenses 239,377,981 8,445,854,000
229,046,603,811 85,302,968,000
23. CURRENT TAX EXPENSE
2008 2007
VND VND
Profit before tax 928,748,308,642 579,875,305,000

Adjustments for taxable income -
Less: non-assessable income (58,319,344,073) (33,796,581,000)
Add back: non-deductible expenses 96,287,239,115 12,246,606,000
Assessable income 966,716,203,684 558,325,330,000
Current tax expense 6,410,872,603 3,541,205,000
Details current tax expense:
PVD Training PVD Invest Others Total

VND VND VND
Profit before tax 7,459,147,303 21,279,750,980 900,009,410,359 928,748,308,642

Adjustments for taxable income
Less: non-assessable income (74,160,507) (58,245,183,566) (58,319,344,073)
Add back: non-deductible expenses 493,293,458 - 95,793,945,657 96,287,239,115
Assessable income 7,952,440,761 21,205,509,473 937,558,172,450 966,716,203,684
Tax rate 12.4% 28% 0%
Current tax expense 983,519,647 5,937,565,332 - 6,921,084,979
Tax deduction (64,894,976) (445,317,400) - (510,212,376)
Net current tax expense 918,624,671 5,492,247,932 - 6,410,872,603
The Group has the obligation to pay Corporate Income Tax (“CIT”) at the rate of 28% of taxable profits.
Except for PVD Training, BJ-PVD and PVD Invest as discussed below, the Group is entitled to tax exemption
for two years (from 2007 to 2008) and a 50% reduction for the following five years. As it is the second year
during the tax exemption, no corporate income tax was provided for.
PVD Training has the obligation to pay Corporate Income Tax (“CIT”) at the rates from 0% to 28% of taxable
profits for its activities. It is entitled to corporate income tax exemption for two years (from 2005 to 2006) and
a 50% reduction for the following seven years for its security training activities; and three years exemption
(from 2005 to 2007) and a 50% reduction for seven years for its technical training activities.
BJ-PVD is entitled to tax exemption for two years (from 2007 to 2008) and a 50% reduction for the
following three years.
PVD Invest has the obligation to pay CIT at the rate of 28% in 2008 for assessable income from financial
activities.
Up to the date of this report, the Group has been continuously working with Tax authorities for the tax incentive
scheme for PVD Logging, PVD Well Services, PVD Tech and PVD Offshore. However, the Group believed that
the Group’s subsidiaries are also entitled the corporate income tax incentive scheme as of the Group. Had the
Group’s subsidiaries not be entitled CIT incentive, consolidated current tax expense and profit after tax for the
year ended 31 December 2008 would have increased and decreased by VND 38,902,700,979, respectively.
Accordingly, the Group’s taxes and amounts payable to State budget and consolidated retained earnings as
at 31 December 2008 would have increased and decreased by VND 38,902,700,979, respectively.
The Group’s tax returns are subject to examination by the tax authorities. Because the application of tax
laws and regulations for many types of transactions is susceptible to varying interpretations, the amounts
reported in the consolidated financial statements could be changed at a later date upon final determination
by the tax authorities.
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Annual report 2008
24. EARNINGS PER SHARE

The calculation of the basic earnings per share attributable to equity holders of the Group is based on the
following data:
2008 2007
VND VND
Net profit attributable to ordinary shareholders 922,258,604,791 571,901,164,896

Less: Unrealized foreign exchange gains (4,129,326,936) -
Deferred tax income (10,917,622,720) -
Earnings for the purposes of basic earnings per share 907,211,655,135 571,901,164,896
Weighted average number of ordinary shares for
the purposes of basic earnings per share 122,089,043 92,360,384
Earnings per share 7,431 6,192
25. CONTINGENT LIABILITIES
Up to the date of this report, the Group has not completed the tax finalization for its branch operation in
Algeria. The tax finalization will be done by the Authorities of Algeria upon the completion of Algeria project
and the tax liabilities will be determined at that time. The Group’s management believes that there will be no
significant additional tax liabilities.
26. COMMITMENTS
Capital commitments
On the 28 May 2007, PVD Invest entered into a contract with Keppel Fels Limited to build a 517 feet Jack-up drilling
(PV Drilling II) for USD 191,000,000. As at 31 December 2008, the contractor has completed the construction with
estimated value of USD 98,365,000. The outstanding value of this contract of USD 92,635,000 will be performed
and estimated to complete up to 30 October 2009 and being dealt to have an early completion on 15 September
2009.
On the 22 February 2008, PVD Invest also entered into another contract with the Contractor Keppel Fels
Limited and Will Alpha to build a 517 feet Jack-up drilling (PV Drilling III) for USD 185,000,000 and USD
21,000,000, respectively. As at 31 December 2008, Kepple Fels Limited has completed the construction with
estimated value of USD 98,235,000. The outstanding value of this contract will be performed and estimated
to complete up to 31 December 2009.
27. OTHER COMMITMENTS

Lease commitment
At the balance sheet date, the Group had outstanding commitments under non-cancelable operating leases,
which fall due as follows:
31/12/2008 31/12/2007
VND VND
Within one year 19,094,565,100 4,042,423,000

In the second to fifth years inclusive 54,402,896,236 6,933,471,000
After five years 18,517,343,594 5,225,432,000
92,014,804,930 16,201,326,000
Operating lease payments represent total rental payable for leasing office premises in Ho Chi Minh City and
Vung Tau City. These leases are negotiated for periods from 1 year to 8 years.
Service rendered commitment
On 20 October 2008, the Group has signed with The Joint Operating Company “Vietgazprom” to provide
drilling services with estimated day rate of USD 225,900 per day. The duration of this contract shall be
effective for a minimum of 60 days with commencement date from 1 June 2009 to 15 July 2009.
28. RELATED PARTY TRANSACTIONS AND BALANCES

During the year, the Group entered into the following transactions with related parties:
2008 2007
VND VND
Sales
PetroVietnam Group’s subsidiaries 203,645,992,732 54,097,813,000
PetroVietnam’s Joint Ventures/Joint Operating
Companies/Petroleum Sharing Contracts 1,818,523,473,578 1,509,491,821,000
Purchases - -
Companies/Petroleum Sharing Contracts 295,803,054,400 30,017,749,000
Loan from PVFC

Withdrawn - 140,889,154,000
Repayment 44,954,031,500 43,388,546,000
Directors’ remuneration
Remuneration paid to the Group’s Chairman and Board of Directors during the year was as follows:
2008 2007
VND VND
Salaries 4,165,775,341 3,350,866,000

Bonus 4,900,163,737 680,015,000
Benefits in kind 168,000,000 66,277,000
9,233,939,078 4,097,158,000
28
PV Drilling
29

Annual report 2008
28. RELATED PARTY TRANSACTIONS AND BALANCES (cont’d)

Related party balances at the balance sheet date were as follows:
31/12/2008 31/12/2007
VND VND
Receivables
PetroVietnam Group’s subsidiaries 889,510,280 7,484,868,000
Companies/Petroleum Sharing Contracts 111,379,068,171 326,959,746,000
Payables
Loan payables
PetroVietnam Group’s subsidiaries (PVFC) 213,134,775,525 247,256,035,950
Dividends payables
PetroVietnam 166,464,000,000 -
29. COMPARATIVE FIGURES

Certain reclassifications have been made to the prior year’s figures to enhance their comparability with the
current year’s presentation.
30. APPROVAL OF ISSUANCE

The consolidated financial statements for the year ended 31 December 2008 have been approved by the
Group’s Board of Management on 20 March 2009.

20 March 2009

PVD's Annual Report 2008

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PV Drilling • ANNUAL REPORT 2008

4th FIoor, Sailing Tower, 111A Pasteur St.,

www.pvdrilling.com.vn WELL SERVICES

ANNUAL REPORT 2008

PIONEER OF VIETNAM DRILLERS

2008 marked many outstanding achievements in business activities of PV Drilling. PV

As a subsidiary of PetroVietnam, PV Drilling has advantages from PetroVietnam by receiving

Commercial & HSEQ Dept. MIS Dept. Legal Dept.

Project Hanoi PVD Offshore PVD Well

PVD Logging PVD Trading & PVD Drilling PetroVietnam

PV Drilling PVD Technical BJ Services – PVD Tubulars

Mr. DO DINH LUYEN

Mr. Luyen, together with other members of the Board of Management

Mr. Luyen graduated with a degree in Petroleum Mechanical

Dr. Do Van Khanh

Mr. Tran Van Hoat

Mr. Pham Tien Dung

Mr. Nguyen Xuan Son

He is a member of Board of Management since 23 January 2006, and

He is a member of Board of Management since 23 January 2006, and Deputy

Mr. Dam Hai Giang

He is a member of Board of Management since 23 January 2006. Mr. Giang

1. Dr. DO VAN KHANH

2. Mr. TRAN VAN HOAT

3. Mr. VAN DUC TONG

and Production Equipment Technology at Technological Machinery from

5. Mr. LUONG TRONG DIEP

7. Ms. HO NGOC YEN PHUONG

8. Mr. DOAN DAC TUNG

Key Milestones in PV Drilling’s Development Drilling- related services

o PVD Drilling Division o PetroVietnam Drilling Investment Corporation

o PVD Offshore Services Company Limited

o PVD Well Services Company Limited

o PVD Logging Services Company Limited

Drilling rigs provision is one of PV Drilling’s core services

PVD Drilling Division

PVD Offshore Services

A wholly-owned subsidiary of PV Drilling, focuses on drilling tool rental,

PVD Well Services

A wholly-owned subsidiary of PV Drilling, specializes in high-tech

PVD Trading & Technical Services

A wholly-owned subsidiary of PV Drilling, provides materials, spare parts,

A subsidiary of PV Drilling whereby PV Drilling owns 51%

PVD Technical Training & Certification

A subsidiary of PV Drilling whereby the latter owns 49%

International Company Limited

A subsidiary of PVD Tech whereby PVD Tech owns 51%

TOTAL ASSETS (VND BILLION)

2008 3,729 2008 15,228

Net Tangible Assets per Share

PROFIT BEFORE TAX (VND BILLION) DEBT TO EQUITY RATIO

2008 929 2008 2,29

2007 580 2007 0,83

2006 162 2006 1,75

2005 73 2005 0,67

PROFIT AFTER TAX (VND BILLION) EARNINGS PER SHARE (VND)

2008 922 2008 7,431

2007 572 2007 6,192

2006 116 2006 1,712

Financial highlights Unit 2008 2007 2006 2005

The year of 2008 is also a rapid and steady

2008 business performance summary