Petrovietnam signs key oil & gas deals to bolster energy security

State-owned energy group Petrovietnam on Friday signed production sharing contracts (PSCs) for offshore Blocks 10/11 and 10&11-1, as well as a gas sales and purchase agreement (GSPA) for Phase 2B of the Su Tu Trang gas field.

The agreements underscore Petrovietnam's push, alongside its upstream unit Petrovietnam Exploration Production Corporation (PVEP) and partners, to accelerate oil and gas exploration and development while bringing new resources into production, Petrovietnam stated in a release on the same day.

Attending the signing ceremony were senior officials including Pham Gia Tuc, a Politburo member and Standing Deputy Prime Minister; and Le Manh Hung, a Party Central Committee member and Minister of Industry and Trade.

The PSCs for Blocks 10/11, 10&11-1 were signed between Petrovietnam and PVEP, which will serve as the project developer.

The offshore blocks, located in the Nam Con Son Basin, contain prospective structures including Ca Cho, Gau Chua and Gau Ngua but have remained undeveloped for years due to geological complexity, high capital requirements and commercial challenges.

Petrovietnam said advances in technology, improved project economics and the ability to leverage existing infrastructure around the Dai Hung field have helped unlock the projects.

The company added that developing the blocks alongside PVEP's existing assets in the area would maximize use of infrastructure and experienced personnel while boosting domestic oil and gas output.

The projects are also expected to reinforce Vietnam's long-term energy security and contribute to economic growth, while maintaining offshore operations in areas regarded as strategically important.

Separately, Petrovietnam signed a gas sales and purchase agreement for Phase 2B of the Su Tu Trang field in Block 15-1 with partners including PVEP, Perenco, Korea National Oil Corporation (KNOC), SK Earthon (SKEO) and Geopetrol.

The agreement follows the signing of the Block 15-1 production sharing contract in 2025 and is intended to pave the way for first gas from the Phase 2B development by the end of 2027.

Petrovietnam expects the project to add around 1.2 billion cubic meters of natural gas annually, supplying power plants in southern Vietnam, including the Phu My Power Center and Nhon Trach power plants, while improving utilization of existing gas infrastructure.

PVEP CEO Nguyen Thien Bao said the agreements marked significant milestones in expanding exploration and production activities and reaffirmed the company's commitment to ensuring national energy security.

Petrovietnam chairman Le Ngoc Son noted the group had signed five new oil & gas contracts over the past year, demonstrating its role in expanding Vietnam's energy resource base and supporting the government's objective of achieving strong economic growth.

Industry and Trade Minister Le Manh Hung welcomed the agreements, saying they would generate substantial revenue for both the government and participating companies while providing an important new source of gas supply for southeastern Vietnam.

Blocks 10/11 and 10&11-1 cover a combined area of approximately 7,915 square kilometers on the western margin of the Nam Con Son Basin, about 210 km southeast of Vung Tau town (now part of Ho Chi Minh City), in waters ranging from 80 to 110 meters deep.

The acreage is adjacent to Block 05-1(a), where PVEP holds a 100% participating interest and serves as operator, and is located near existing oil & gas infrastructure in the Nam Con Son area.

Block 15-1 is located in the Cuu Long Basin off southeastern Vietnam, around 120 km from Vung Tau town. It is one of Vietnam’s most successful upstream blocks, with major discoveries including Su Tu Den (Black Lion), Su Tu Vang (Golden Lion), Su Tu Nau (Brown Lion), and Su Tu Trang (White Lion).

The Su Tu Trang field is the block’s largest gas-condensate discovery and currently serves as one of the key sources of natural gas supply for southeastern Vietnam.