Vietnam’s state-owned energy group, Petrovietnam, has signed a series of upstream agreements aimed at unlocking long-dormant offshore fields and boosting the nation’s domestic energy supply.
The state group secured production sharing contracts (PSCs) for Blocks 10/11 and 10&11-1 in the Nam Con Son Basin, alongside a major gas sales and purchase agreement (GSPA) for Phase 2B of the prolific Su Tu Trang (White Lion) gas field.
The offshore blocks, covering nearly 8,000 square kilometres southeast of Ho Chi Minh City, have remained undeveloped for years due to high capital requirements and extreme geological complexity.
However, Petrovietnam revealed that technological advancements and the ability to tie into existing infrastructure around the nearby Dai Hung field have finally made the projects commercially viable.
Petrovietnam Exploration Production Corporation (PVEP) will lead the development of the blocks, a move expected to significantly ramp up domestic oil and gas output while safeguarding national sovereignty in vital waters.
Concurrently, Petrovietnam finalised the Su Tu Trang Phase 2B agreement alongside international partners, including PVEP, Perenco, Korea National Oil Corporation, SK Earthon, and Geopetrol. Located in the Cuu Long Basin, the project is slated to achieve first gas by the end of 2027.
The multi-billion-dollar project involves brownfield modifications, drilling up to 15 gas wells, and installing a new Central Gas Facility platform.
Over its lifespan, Phase 2B is projected to supply more than 600 billion cubic feet of gas, adding roughly 1.2 billion cubic metres annually to fuel critical power plants in southern Vietnam.
The project is designed to deliver up to 150 million standard cubic feet per day (MMscfd) of gas and includes brownfield modifications, the installation of a new Central Gas Facility (CGF) platform, and the drilling of up to 15 gas wells.
Petrovietnam chairman Le Ngoc Son noted that the group has signed five new oil and gas contracts over the past year, solidifying its role in expanding the country’s resource base.
