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The 2014 Annual General Meeting of Shareholders of PetroVietnam Gas Joint Stock Corporation

Implementing the regulations of Law on enterprises and Charter of PetroVietnam Gas Joint Stock Corporation (PV Gas), in the morning on 17th April 2014, PV Gas held the 2014 Annual General Meeting of Shareholders at PV Gas Tower, Ho Chi Minh City.                       

     Attendees to the meeting included Mr. Do Manh Tuan, Deputy Head of the Department of Sector Economics – Government Office; from the Vietnam Oil and Gas Group (PVN) there were Mr. Nguyen Thanh Liem – Member of Board of Directors, Mr. Nguyen Quoc Thap and Mr. Le Minh Hong – Vice Presidents, and representatives from Ministries, Departments, PVN and other partners; 674 shareholders and proxies who currently hold 98.44% of PV GAS' total shares. From the PV GAS there were leaders of BOD, Board of Management, Board of Controllers, representatives from Divisions, owned companies and subsidiary companies.                         
      At the meeting, PV GAS reported to General Meeting of Shareholders the following issues for discussion and approval:
−     Election of BOD member;
−    Report on business operations in 2013, 2013 audited financial report, 2013 profit distribution method and Business and profit distribution plan for 2014;
−    Report on BOD's activities in 2013, operation orientations for 2014;
−    Report on Board of Controllers' activities in 2013, Operation orientations for 2014, Proposal of auditor appointment for 2014;
−   Report on implementation of remuneration, income of BOD and Board of Controllers in 2013 and plan on remuneration, income of BOD and Board of Controllers for 2014;
      The Presidium also spent much of time to answer shareholders’ questions and concerns about relating reports, insisted on PV GAS's great effort in sustainably building and developing the brand of PV GAS on the basis of transparent business and attraction of domestic and foreign investment sources.                      
      With the approval rates were all from 99% to 100%, all the above mentioned contents were adopted at the meeting. Accordingly, the meeting approved the appointment of Mr. Le Nhu Linh as the BOD member concurrent the new Chairman of PetroVietnam Gas Joint Stock Corporation.                      
      Also at the meeting, the Contract Signing Ceremony of Nam Con Son 2 gas pipeline project, phase 1 took place.

      PV GAS' OPERATION RESULTS IN 2013
      In 2013, PV Gas was actively aware of and assessed the existing obstacles and difficulties and took appropriate measures to promptly handle the difficulties in management and administration, creatively carry out tasks in production and trading. By promoting the full strength of the whole political system, the solidarity and high determination of all PV Gas leaders and personnel, as well as making full use of opportunities, support and directions from PetroVietnam, support from customers, domestic and foreign shareholders, PV GAS has overcome difficulties, challenges to successfully and impressively completed the 2013 plan: ensuring safe and stable operation of gas system; completion and putting into operation of the Thi Vai refrigerated storage, Rong - Dong Moi extended gas gathering system, successfully receiving gas from Hai Thach - Moc Tinh fields, contributing to increasing gas supply and gaining the active status in trading LPG; fulfilling and exceeding most of the targets, especially several targets were reached 2 to 5 months ahead of schedule (Profit target was completed 5 months ahead of schedule, contribution to the State budget - 4 months, revenue - 2 months, LPG output - 2 months, dry gas output - 15 days ahead of schedule); PV GAS' share price rising sharply and stably on the stock exchanges (capitalization value on the market is nearly USD 6 billion); PV GAS' trademarks increasingly growing domestically and internationally, continuing to be one of leading units of PVN and on the stock exchanges in term of profit gained; contributing significantly to the State budget and, together with PVN, helping stabilize the national macroeconomics.
As presented in the 2013 Plan approved by the General Meeting of Shareholders, PV GAS has successfully fulfilled tasks and targets, with the results as follows:
                      

     PV GAS has always enhanced the safety, health, environment, security and inspection tasks, ensuring safe and constant operation of gas system with total safe working hours of over 6.2 million hours in the year. PV GAS' production and trading facilities have been operating safely, allowing no violation of environmental regulations and no occurrence of serious incidents.                               

     PV GAS has ensured the safe and constant operation of gas system; completed and received the certificate of upgrading the operating capacity of Nam Con Son (NCS) pipeline to 22 million m3 of gas/day from May 2013; supplied input fuel and feedstock for generation of nearly 40% national power output, 70% the national demand for fertilizer, contributing to ensuring national energy and food security.
PV GAS also provided the markets with 1,060,811 tons of LPG, equal to 115% annual plan, increasing by 3% compared with the same period of 2012, equivalent to the revenue of VND 21,573 billion, equal to 136% annual plan; supplied customers with 62,200 tons of Condensate, equal to 123% annual plan, equivalent to the revenue of VND 460 billion, equal to 123% annual plan. Gas sales and purchase contracts were seriously checked and fulfilled by PV GAS with highest efforts for gas supplying to customers. Activities such as gas transportation, gas and gas product quality and loss control were seriously compliant with regulations of the PVN/PV GAS and according to requirements of customers. As the result, PV GAS transported nearly 6,287 million m3 of gas, equivalent to the revenue of VND 2,438 billion, equal to 117% annual plan; transported 178,550 tons of Nam Con Son Condensate, satisfying 100% of customers’ needs, achieved over 30 billion VND revenue, equal to 121% annual plan.                              

                              
      PV GAS also performed regular and unscheduled corrective and preventive maintenance, verification and calibration, pigging operation tasks in accordance with the plan and the process with quality, stable and continuous operation assured for system/works/plants. All the corrective maintenance tasks were all completed ahead of schedule. In 2013, PV GAS performed 3,718 tasks of corrective maintenance in total, of which there were 2,165 preventive maintenance tasks, 1,460 unscheduled maintenance tasks and 93 tasks of regular maintenance, verification and calibration. The investment and construction works were actively carried out, followed the plan and ensured capital sources for the projects. PV GAS’ subsidiary and associate companies have been positively operating and receiving much supports from the Parent company.
    The scientific research, investment cooperation, creation of innovation initiatives and inventions have been given special attention and continuously promoted and mobilized to every unit, division, employee with actively responses received. According to the preliminary statistics, the number of initiatives and inventions in 2013 was not less than that of 2012, yielding benefit to PV GAS with hundreds of billions of dongs (in 2012, 81 initiatives were recognized).
     The missions of corporate restructure, labor and remuneration, benefits and policies for employees were implemented in accordance with regulations as well as directions of the Group. PV GAS has completed the dissolution of PSCC, conversion of PV Gas Cylinder to an owned company of PV GAS South, listing PV Coating's shares on the stock exchanges, increasing the charter capital of PV Pipe, purchasing the capital share of PVC-MS and PVC-IC at PV Pipe. The training activities were carried out in accordance with the 2013 plan and have been found to be effective by PVN/PV GAS. The revised and additional planning of officials to the year 2015 and building the planning of officials for the period 2015-2020 was completed. Up to the end of 31st December 2013, the total employees of the Parent company are 1,110 persons, including 80% of male, 20% of female, and employees holding university degrees or above account for over 60% (total employees of PV Gas are 3,388 persons). PV GAS organized the training programs/sent over 6,495 employees to attend the professional training courses domestically and abroad (achieved 140% annual plan) at cost of VND 24 billion (just equal to 96% annual plan).
     The service usage and service supply policy was complied with current regulations and followed the directions of the Group. In the year, PV GAS and its subsidiary companies were fully aware of and seriously implemented the policy of service usage and supply. PV GAS has continuously strengthened its competitiveness, mainly focusing on the core services, not overlapping with other units in the industry. These services are transportation of gas and gas products, supplying low pressure gas, CNG for industrial customers, CNG/LPG for transportation and urban areas, producing pipelines, pipe coating, supplying gas tanks, providing LPG storages for lease service. These services have been always satisfying customer requirements of quality, quantity, schedule and contributed to the 2013 total revenue of PV GAS nearly VND 7,000 billion (accounting for 10%), increasing by 20% compared with year 2012. Regarding the service usage area, PV GAS has always given priority in using and optimizing the services supplied by the units in the industry with using rate per total demand to be ensured at high level (accounting for 67%). The services used are mainly items of design, procurement, construction and installation of gas works, repair and maintenance, procurement of materials and equipment serving the operation system, transportation of gas product, insurance, calibration, verification, scientific research and training,... The value of services used (service hiring) was above VND 2,700 billion in the whole year 2013.
      PV GAS has built, popularized and organized to implement the action plan of cost saving, reduction of production cost in response to each Resolution, Action Plan, policy of the Group as well as of PV GAS, which provide major direction/management solutions for implementation of plans of socio-economic development, restructure, thrift practice, cost saving in production and business activities, reduction of production cost,.... Every production unit and employee was required to conduct monthly/quarterly performance assessments which were reported to PV GAS leadership for timely direction. As the result of these solutions, PV GAS saved over VND 220 billion in the year, equal to 128% annual plan.
      Social security activities have been conducted practically according to commitment. To continue to bring into play the mutual affection tradition, PV GAS has performed many social security and community activities, presenting its high degree of social responsibility. In 2013, many social activities of charity, all types of sponsorship for education, sport, culture, supporting for natural disaster reliefs and construction of houses of affection...were performed effectively for right beneficiaries, contributing not a small part to the social security activities of the Group and the whole country. PV GAS sponsored over VND 73 billion for the community activities, which was added with the salary amount of total employees of 4 working days to support various funds: PetroVietnam mutual assistance fund, Fund for younger generations, Comradeship fund, Fund supporting for natural disaster reliefs….                                   
     2014 action plan of PV GAS' Board of Directors:

-  To keep organizing the BOD mechanism to work professionally with a high sense of responsibility, satisfactorily directing and supervising activities of the Executive Board;
-  To keep holding regular meetings according to regulation and extraordinary meetings when necessary to resolve any matters arising under the BOD authority, and attending all meetings of the Executive Board as regulated/invited, together with the Executive Board to promptly handle any issues;
-   To urge, closely monitor the implementation of BOD’s Resolutions;
-  To direct preparation and implementation of PV GAS restructure in the direction of lean structure and focusing on effective and core business lines;
-   To direct review of investment projects, with priority to focus resources on key effective investment projects;
-  To direct introduction and application of PV GAS Corporate Culture, ensuring PV GAS’ activities to be carried out professionally and with reputation;
-   To direct promotion of research, seeking strategic partners, especially foreign investors of ample qualifications and experience in gas, ensuring sustainable development of PV GAS.
-   To direct the signing of the Agreement with PVN which stipulates the governing principles for the relationship between the Group and PV GAS, defines rights, responsibilities and obligations of the parties in coordination to manage, run, check and monitor the operation activities of the Group and PV GAS. This aims at strengthening PVN and PV GAS' competitiveness, position and reputation on the markets, ensuring effective coordination in production and business activities between PVN, PV GAS and other units under PVN.
The targets of 2014 include: safely and effectively operating existing gas facilities, ensuring progress of investment projects; supplying over 9.5 billion m3 of dry gas for customers; ensuring LPG output to supply over 70% market share nationwide, PV GAS revenues to reach over VND 62 trillion and pre-tax profit over VND 10 trillion, maintaining to be a key subsidiary of PetroVietnam and achieving expectations of PV GAS’ shareholders.

SIGNIFICANT EVENTS IN 2013
1.   Completing and putting into operation the Thi Vai refrigerated LPG storage, boosting the preemptive role in trading and contributing to the stabilization of the domestic LPG market.
2.    Completing investment and putting into operation the PM3-Ca Mau Gas Compressor, increasing the right to receive PM3 gas and gas output to supply to end-users in Southwest area to 6.2 million m3 of gas per day; completing investment and putting into operation the extended Rong- Doi Moi gas pipeline, adding to Cuu Long gas system over 0.2 million of gas per day; completing Nam Con Son gas system, upgrading the operating capacity to 22 million m3/ day, celebrating the anniversary for 10 years of safe operation and transportation of the 50 billionth m3 of gas; receiving new Hai Thach - Moc Tinh gas from Nam Con Son basin, increasing the gas supply for the Southeast region by 2 billion m3 of gas/year.
3.    Completing the maintenance, repair work in the phase of complete halt of Nam Con Son, Cuu Long and PM3 - Ca Mau gas systems, ensuring safety and resuming operation ahead of schedule.
4.     Fulfilling targets of profit and budget contribution 4 to 5 months ahead of schedule.
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EXPECTED SIGNIFICANT EVENTS IN 2014
1.    Commencement of construction of project Nam Con Son 2 - phase 1, significantly contributing to full gathering of gas from domestic resources.
2.   Commencement of construction of project LNG 1MMTPA Thi Vai, starting the import of gas from abroad to supplement the decreasing gas supply to the domestic market.
3.   Commencement of construction of gas supply projects in Thai Binh province, significantly contributing to full gathering of the gas from domestic resources and developing the gas projects in Northern market.
4.     Implementation of major overhaul at GPP and Thi Vai storage and terminal..                                          

© Copyright PETROVIETNAM GAS JOINT STOCK CORPORATION (PV GAS)
Address: Floor 12-15, PV GAS TOWER, No. 673 Nguyen Huu Tho Street, Phuoc Kien Commune, Nha Be District, Ho Chi Minh City.
Phone: +84.28. 3781 6777 Fax: +84.28. 3781 5666 Email: pvgas@pvgas.com.vn

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