Petrovietnam, Japan's JVPC sign product sharing contract for Block 15-2

State-run Petrovietnam, its subsidiary Oil and Gas Exploration and Production Corporation (PVEP), and Japan-Vietnam Petroleum Company (JVPC) on Monday signed a product sharing contract for Block 15-2 in the Cuu Long basin, off the southern coast of Vietnam.

The contract has a term of 25 years, effective from April 7, 2025, PVEP stated on its website.

"The signing of the contract is of special significance. This is the first oil and gas contract to realize the new points of the Petroleum Law 2022, which reflects the Vietnamese government's policy to encourage investment in oil and gas exploitation and exploration activities on Vietnam's continental shelf," it wrote.

The contract ensures the stability and continuity of oil and gas activities at Block 15-2, contributing to maximizing revenue for the state budget, solidifying energy security, and moving towards sustainable development, PVEP added.

Block 15-2 covers an area of approximately 415.9 square kilometers, offshore the southeastern region, in the central and northeastern parts of the Cuu Long sedimentary basin. It includes two large oil and gas fields, Rang Dong and Phuong Dong, with an average water depth of 57-60 meters.

The new product sharing contract (PSC) is a continuity of the previous contract which will come to an end on April 6, 2025.

The project has been operated by JVPC since 1992. To date, its oil production has reached over 250 million barrels, bringing in revenue of over $15 billion.

Under the new contract, JVPC holds 45% interest and continues to assume the role of the operator.

The fact that JPVC continues to be appointed as the operator of oil and gas activities at Block 15-2 is a testament to the experience and efforts of JPVC and PVEP over the past three decades, PVEP stated.

JVPC is a 100% owned subsidiary of ENEOS Xplora - an oil and gas exploitation and exploration company under ENEOS Holdings. ENEOS Holdings is Japan's largest energy group, holding 50% of the petroleum market share in this country and with operations across the globe.

ENEOS Xplora is one of the pioneers in deploying carbon capture technology (CCS/CCUS) with projects in the U.S. (Petra Nova), Malaysia and Vietnam (CDM Rang Dong - the first project in Vietnam under the Clean Development Mechanism, according to the United Nations Kyoto Protocol). This unit is currently coordinating with Petrovietnam to research other potential CCS/CCUS projects in Vietnam.

PVEP is the leading unit of Petrovietnam in the core business of the group - oil and gas exploration and exploitation. PVEP is currently implementing 34 oil and gas projects, of which 29 are domestic projects and five are overseas ones.