Murphy Oil's Vietnam offshore oil find very positive, but further appraisal needed: official

A major offshore oil discovery by U.S.-based Murphy Oil has raised hopes of a new boost for Vietnam’s energy sector, with early estimates suggesting recoverable reserves of more than 430 million barrels, but authorities say further appraisal is needed before drawing firm conclusions.

Earlier this month, Murphy Oil announced the successful appraisal drilling of the Hai Su Vang-2X (HSV-2X) well in Block 15-2/17 of the Cuu Long Basin, located about 65 kilometers off Vietnam’s coast.

New estimates released on January 6, 2025 indicate recoverable reserves exceeding 430 million barrels of oil equivalent, significantly higher than earlier projections of 170-430 million barrels published in January 2024.

The well was spudded in early October 2025 and represents a key milestone in the company’s appraisal program for the Hai Su Vang (Golden Sea Lion) field, discovered earlier in 2025.

The HSV-2X well was drilled to appraise the initial Hai Su Vang discovery, where the first well encountered around 370 feet of net oil pay across two reservoirs. Formation evaluation indicates strong reservoir continuity between HSV-2X and the original discovery well, HSV-1X.

The Hai Su Vang field is operated by Murphy Cuu Long Oil, a subsidiary of Murphy Oil, which holds a 40% working interest. The Petrovietnam Exploration Production Corporation (PVEP) owns 35%, while South Korea’s SK Earthon holds the remaining 25%.

Murphy Oil began drilling an exploration well at Hai Su Vang in 2024 and successfully completed appraisal drilling in 2025 to assess the field’s scale, reserves, and production potential. Based on the initial results, the field is considered to have significant potential.

The firm plans to continue delineating the field through additional appraisal wells, including HSV-3X in Block 15-1/05 and HSV-4X in Block 15-2/17. Both wells are part of the company’s approved capital program, and Murphy reaffirmed its 2026 capital expenditure guidance of $1.1-1.3 billion.

Speaking at the Ministry of Industry and Trade’s (MoIT) regular press meeting on Thursday, Dang Hai Anh, deputy director of the ministry’s oil, gas and coal department, described the discovery as “a very positive result,” noting that Murphy Oil’s exploration activities in Blocks 144-145 and 15-1, 15-2 have delivered encouraging outcomes.

However, he emphasized that under current regulations, investors must continue appraisal work and submit detailed petroleum resource and reserve reports to competent authorities before reserves can be officially confirmed.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan echoed that caution, stressing that the announced figures are still estimates. “This is good news, but more specific data are needed for a definitive conclusion,” he said, adding that the ministry will coordinate with relevant agencies to conduct further review and appraisal.

The discovery comes as Vietnam’s oil and gas sector continues to operate effectively despite natural production declines at mature fields. According to the MoIT, crude oil output is estimated at 9.98 million tons in the latest period, up 0.7% year-on-year, while natural gas production is estimated at 6 billion cubic meters, down 5.6%. Except for gas, most products met or exceeded growth targets.

To ensure an objective and comprehensive assessment of the Hai Su Vang discovery, the MoIT has asked the investor to submit formal reports for review. The ministry will also work with Vietnam National Industry-Energy Group (Petrovietnam) and other relevant bodies to further evaluate the findings before any final conclusions are drawn.