Petrovietnam signs key oil & gas deals to bolster energy security

State-owned Petrovietnam has finalized production sharing contracts for offshore Blocks 10/11 and 10&11-1 and a gas sales agreement for Phase 2B of the Su Tu Trang field. These agreements aim to accelerate domestic exploration and production in the Nam Con Son and Cuu Long basins to enhance Vietnam's long-term energy security. The projects are expected to provide critical fuel for power plants in southern Vietnam and maximize the use of existing offshore infrastructure.

Petrovietnam and its upstream unit, Petrovietnam Exploration Production Corporation (PVEP), signed production sharing contracts (PSCs) for offshore Blocks 10/11 and 10&11-1. Located in the Nam Con Son Basin approximately 210 km southeast of Vung Tau, these blocks cover 7,915 square kilometers in water depths of 80 to 110 meters. Although the area contains prospective structures such as Ca Cho, Gau Chua, and Gau Ngua, it remained undeveloped for years due to geological complexity and high capital requirements. Petrovietnam noted that recent technological advances and the ability to leverage infrastructure from the nearby Dai Hung field have finally made these projects commercially viable.

In a separate development, Petrovietnam signed a gas sales and purchase agreement (GSPA) for Phase 2B of the Su Tu Trang field within Block 15-1. This project involves a consortium including PVEP, Perenco, Korea National Oil Corporation (KNOC), SK Earthon, and Geopetrol. The agreement sets the stage for first gas production by the end of 2027, with an expected annual output of approximately 1.2 billion cubic meters of natural gas. This supply is earmarked for major power facilities in southern Vietnam, specifically the Phu My Power Center and Nhon Trach power plants, while optimizing the utilization of the region's existing gas infrastructure.

These deals represent a broader strategic push by the Vietnamese government to expand its energy resource base and support economic growth. Petrovietnam Chairman Le Ngoc Son highlighted that the group has signed five new oil and gas contracts over the past year, underscoring its role in securing national energy supplies. Minister of Industry and Trade Le Manh Hung emphasized that the developments would generate significant revenue for the state and participating firms while providing a stable gas source for the southeastern region. PVEP CEO Nguyen Thien Bao added that the agreements mark a milestone in expanding exploration activities and maintaining a strategic presence in offshore areas.