New production sharing contract signed for Block 15-1 oil fields off southern Vietnam

State-owned Petrovietnam and its joint venture partners on Friday signed a new production sharing contract (PSC) for Block 15-1, located in the continental shelf off southern Vietnam.

Since its discovery and development, Block 15-1 has consistently recorded large production volumes, delivered high economic efficiency, and played a key role in national oil and gas output over the years.

Cuu Long Joint Operating Company (CLJOC) – the operator of projects in Block 15-1 – has become the second-largest oil producer in Vietnam.

CLJOC was established on September 16, 1998, under the Block 15-1 oil contract between Petrovietnam and a consortium of contractors comprising PVEP, Anglo-French oil and gas firm Perenco, Korea National Oil Corporation (KNOC), South Korea’s SK Group, and Geopetrol.

Block 15-1 holds a strategic significance for Petrovietnam and its subsidiary Petrovietnam Exploration Production Corporation (PVEP) in their exploration and production activities.

The Block 15-1 project has reached numerous milestones, including 100 million barrels of oil in December 2007; 200 million in March 2011; 300 million in June 2016; 350 million in 2019; and most recently, 400 million barrels as of November 11, 2022.

Over its 27 years of operation, Block 15-1 has produced approximately 430 million barrels of oil, generated over $31 billion in total revenue, and contributed nearly $15 billion to the national budget - an impressive achievement reflecting the sector’s economic efficiency and vital contribution to Vietnam’s socio-economic development.

The newly signed PSC lays the foundation for continued efficient production from existing fields and opens opportunities to discover and develop new potential structures, helping to ensure national energy security and reinforce Vietnam’s sovereign presence in its maritime areas.

Currently, PVEP, Petrovietnam’s core exploration and production arm, continues to play a leading role in operating key oil and gas fields, with Block 15-1 standing as a prime example of its operational efficiency and field management capabilities.

Building on experience from fields such as Bach Ho (White Tiger), Rong (Dragon), Su Tu Den (Black Lion), and Su Tu Vang (Golden Lion), further investment in Block 15-1 is expected to generate substantial added value for Vietnam’s oil and gas industry in the years to come.

Speaking at the Friday signing ceremony, Deputy Prime Minister Bui Thanh Son praised and congratulated the leaders and employees of Petrovietnam, PVEP, and CLJOC for their outstanding achievements over the years.

He emphasized that the event is a major milestone in the development of Vietnam’s petroleum sector and serves as a clear testament to the effective and close collaboration between Petrovietnam, PVEP, and international partners.

Amid rising energy demands for national development, the early and effective implementation of energy and oil-gas projects, especially key PSCs, holds significant meaning in achieving national goals for petroleum industry development, energy security, and overall economic and social progress, Deputy PM stressed.

Son asked Petrovietnam and its member companies to “think big, act bold” and enhance competitiveness and adaptability to fulfil tasks in the new context, positioning Petrovietnam as a leading energy group in the region and the world at large.