Murphy Oil Corporation has made a significant oil discovery in Vietnam’s Cuu Long basin, potentially the largest in the region in over a decade.
The Hai Su Vang-1X exploration well, located in shallow waters approximately 64 kilometres offshore, encountered approximately 110 metres of net oil pay across two reservoir zones.
The discovery aligns with Murphy’s pre-drill estimates of 170 million barrels of oil equivalent (mmboe) or more of gross resources.
Murphy Oil operates the block with a 40 per cent interest, in partnership with PetroVietnam Exploration Production Corp. (35 per cent) and SK Earthon Co. Ltd. (25 per cent).
This find is particularly significant for Vietnam’s oil production, which has been declining since its peak of 390,000 barrels per day (bpd) in 2004 to around 138,000 bpd currently.
The Hai Su Vang-1 discovery could play a crucial role in addressing this decline and ensuring the sustainability of the country’s oil production.
Eric Hambly, President and Chief Executive Officer of Murphy Oil, expressed satisfaction with the well’s success, stating: “This discovery adds further upside to our current Vietnam business. We look forward to working with our partners as we continue evaluating the results.”
The development of the Hai Su Vang field could potentially be expedited due to its proximity to Murphy’s existing Lac Da Vang oil field in the adjacent Block 15-1/05.
The Lac Da Vang field is already under development and expected to come online by mid-2026.
Given that Hai Su Vang-1 is just 15 kilometres southeast of Lac Da Vang, it could potentially be considered for a future fast-track tie-in option.
Murphy Oil is currently evaluating the well results and developing further appraisal plans.
The company’s next step will be to spud the Lac Da Hong-1 exploration well on an adjacent prospect to Lac Da Vang, also within Block 15-1/05.
This discovery represents a significant boost to both Murphy Oil’s portfolio and Vietnam’s struggling liquids production outlook.
While actual commercially recoverable volumes are typically lower than gross resource estimates, the Hai Su Vang-1 discovery appears to be a promising development for Vietnam’s oil industry.