Petrovietnam opens bidding for offshore block in Cuu Long basin

State-owned Petrovietnam has launched bidding for Block 17 in the offshore Cuu Long basin as Vietnam accelerates efforts to secure new oil and gas resources amid declining output from aging fields.

The firm said interested investors can register for the bidding process between June 1 and June 15, 2026.

After submitting expressions of interest, potential bidders will gain access to geological datasets, technical documentation, and related project materials to evaluate the block’s commercial potential before the formal tender phase begins.

Tender documents will be issued from August 3 to August 14, with bids due by September 16, Petrovietnam said, adding that the tender will be conducted through an open bidding process.

The move comes as Vietnam’s oil and gas industry seeks to replenish reserves and maintain long-term energy supply for an economy facing rising electricity demand driven by industrialization, digital infrastructure expansion, and energy-intensive manufacturing sectors.

Block 17 is located in the Cuu Long, home to some of the country’s best-known oil fields, including Bach Ho, Su Tu Den, Su Tu Vang and Te Giac Trang. They are primarily exploited through production sharing contracts (PSCs) and operated by joint operating companies involving Petrovietnam and foreign firms, including Murphy, SK Earthon, and Zarubezhneft.

According to industry estimates, total oil and gas resources in place in the Cuu Long basin are estimated at around 3.8-4.2 billion cubic meters of oil equivalent. Recoverable reserves are estimated at roughly 800-900 million cubic meters.

The basin is considered attractive for investors due to decades of accumulated geological data and relatively well-developed offshore infrastructure, factors that can help reduce exploration risks and improve project economics.

The tender launch reflects broader concerns within Vietnam’s energy sector as several major domestic oil and gas fields enter natural decline phases, increasing pressure on authorities and energy companies to develop new production and exploration projects.