PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo, stock code: DPM) has disclosed information on adjustment of the gas purchase contract between DPM and PetroVietnam Gas Joint Stock Corporation (PV Gas) as follows:
1. According to the Resolution of 2012 AGM, DPM’s General Meeting of Shareholders has adopted the gas purchase contract between DPM and PV GAS for the period of 2012-2015, which prescribes the gas price as follows : ” The gas price shall be agreed and adjusted by the two parties in case of any new gas resources produced, imported and brought into Cuu Long gas source and/or upon any decision on change of gas price from competent agencies;”
2. Basing on the gas price calculation formula as stipulated in: Official Letter No. 2175/VPCP-KTTH dated 02 April 2014 of the Government Office advising the Prime Minister”s opinions on the market gas price plan and the state budget regulation on gas and Official Letter No. 4688/BTC-TCT dated 11 April 2014 of the Finance Ministry on market gas price for Phu My Urea and electricity generation on ATOP (above take-or-pay) basis, DPM and PV Gas have agreed to adjust the price of the Contract as follow:
– Formula of gas price calculation for gas volume delivered and received under the Contract from 01 January 2015 through 31 December 2015 at of the Gas Delivery Points:
P = Pn + Tcl = 46%*MFO+ 0.92 (USD/MMBTU)
In which:
+ P is the Contractual gas price, excluding VAT and denominated in USD/MMBTU);
+ Pn = (46% * MFO) is the converted gas price at forty six percent (46%) of MFOC average monthly price on Singapore market according to Platt’s Magazine, denominated in USD/MMBTU and rounded up to six (06) decimal digits;
+ Average oil price MFOC: is converted on each ton of FO, corresponding to 40.60 million BTUs in Gross Heating Value (GHV);
+ Tcl: is the gas transport and delivery charges of Cuu Long Basin, in USD/MMBTU.
3. According to the Decision No. 7614/QĐ-DKVN dated31October 2014 ofPetroVietnam’sPresident & CEO pertaining to the selling gas price of PV Gas to PVFCCo from 01 January 2015 according to the above formula, the schedule of freight charge rates for gas transportation and distribution up to 2019 will be as follows:
Unit: USD/MMBTU
Year
2015
2016
2017
2018
2019
Cuu Long Basin’s charge rate applicable to Phu My Fertilizer Plant
0.92
0.94
0.96
0.98
1.00
DPM will submit the gas purchase transaction with PV Gas for the period 2016-2019 to the General Meeting of Shareholders for approval in the 2015 AGM.
