US firm Murphy Oil to begin drilling southern Vietnam exploration wells next month

U.S.-headquartered Murphy Oil Corporation is preparing to spud two exploration wells in Vietnam late in the third quarter and the fourth quarter of this year, respectively, says CEO Roger Jenkins.

He said at a Q2 review meeting last week that the company planned to spud Hai Su Vang exploration well in Block 15-2/17 in Q3/2024 and Lac Da Hong exploration well of Block 15-1/05 in Q4/2024. The two blocks are located in Cuu Long Basin, offshore southern Vietnam.

The company has estimated that the Hai Su Vang and Lac Da Hong wells have gross potential resources of 170-430 and 65-135 million barrels of oil equivalent (MMBOE), respectively.

Eric Hambly, president and COO of Murphy Oil, said the firm was “very excited about exploration wells in Vietnam.” The rig for the drill is currently working with another operator in Vietnam, and will come to work for Murphy Oil later, he said.

“We expect to spud our well late in the third quarter,” he added.

He said the wells have the potential to become a “sizeable, exciting business for us in Vietnam…”.

Jenkins said that Murphy Oil was awarded key facilities and pipeline contracts for developing the Lac Da Vang field in Q2/2024. The project is scheduled to achieve first oil late 2026.

In its quarterly report sent to the U.S. Securities and Exchange Commission, Murphy Oil said it had incurred exploratory well costs of $22.5 million in about a year ending June 30, 2024. This included $15.1 million spent in Vietnam.

EPCIC contract

In May, PTSC Mechanical & Construction (PTSC M&C), a subsidiary of Petrovietnam's technical arm PTSC, and Murphy Oil signed an engineering, procurement, construction, installation, and commissioning (EPCIC) contract for developing the Lac Da Vang oilfield.

The EPCIC contract for a central complex platform (LDV-A platform) covers project management, detailed engineering, procurement, construction, transportation, installation, hook-up, and commissioning for the LDV-A platform.

The LDV-A Platform is planned to be commissioned in the second half of 2026, with most of the works performed at PTSC M&C’s premises in Vietnam's southern coastal province of Ba Ria-Vung Tau.

Lac Da Vang field is located in Block 15-1/05 of the Cuu Long Basin on the Southeast continental shelf of Vietnam, approximately 120 kilometers east of Ba Ria-Vung Tau province. Murphy Oil holds a 40% interest in the block and serves as the operator of Block 15-1/05 together with its partners Petrovietnam Exploration Production Corporation (PVEP) holding 35%, and SK Earthon Co., Ltd. owning 25%.