Vietnam continues to drill oil discoveries, helping to ensure national energy security: broker

Vietnam has been consistently discovering oil in wells across both producing and developing fields, which, according to leading broker Vietcombank Securities (VCBS), will help ensure national energy security amid a rapid decline in domestic gas supplies.

In a new report on the oil and gas industry in 2025, VCBS said that at Block 15-2/17 in the Cuu Long Basin, 34 miles offshore Vietnam, an oil-bearing layer approximately 112 meters thick was found within a structure named “Golden Sea Lion”. The site lies near the producing Block 15-1 and development-stage Block 15-1/05.

In a release on May 7, the U.S.-based Murphy Oil said it made an oil discovery at the Lac Da Hong-1X (Pink Camel) well in the Cuu Long Basin.

Murphy’s subsidiary, Murphy Cuu Long Bac Oil Co., Ltd., is the operator of Block 15-1/05 with 40% working interest. PetroVietnam Exploration Production Corporation Ltd. (PVEP), a subsidiary of state-owned giant Petrovietnam, holds 35% working interest and South Korea’s SK Earthon Co., Ltd. holds the remaining 25%.

VCBS said domestic gas supply is rapidly declining, making the development of new fields and LNG imports an urgent solution to safeguard energy security.

It noted that Vietnam’s domestic gas output has declined at a compound annual growth rate (CAGR) of 5% since 2013, while demand continues to rise. National consumption is projected to jump from 13 billion cubic meters in 2020 to over 22 billion by 2025 and surpass 34 billion by 2030, fueled largely by demand from the power, chemical, industrial, and transportation sectors.

However, output is falling as major gas fields enter natural declines after years of production, the broker said.

LNG playing key role

Against the backdrop, the Vietnamese government is stepping up efforts to develop domestic gas projects. Under the latest national power development plan VIII (PDP VIII), Vietnam aims to significantly expand its gas-fired power capacity, with LNG playing a central role.

Specifically, by 2030, Vietnam’s LNG-fired power capacity is projected to reach approximately 22,524 MW, accounting for between 9.5% and 12.3% of the country’s total installed power generation capacity.

Between 2031 and 2035, the country plans to bring online the Long Son and Long An II LNG-to-power projects in the southern provinces of Ba Ria-Vung Tau and Long An, respectively. Both projects have already been approved and could be accelerated if conditions allow.

Looking toward 2050, the country envisions 18,200-26,123 MW of LNG plants co-firing with hydrogen, 8,576-11,325 MW of LNG facilities converted to run entirely on hydrogen, and 1,887-2,269 MW of LNG power with carbon capture and storage (CCS) capabilities.

VCBS pointed out that Vietnam has brought the Nhon Trach 3 power plant online and plans to commission Nhon Trach 4 in November this year. Both projects, Vietnam’s first LNG-fired power plants, are located in the southern province of Dong Nai, bordering Ho Chi Minh City.

However, it said, among the 21 LNG power projects slated for development by 2035 under the revised PDP VIII, only these two have been completed to date, underscoring the slow implementation pace.

PV Gas serves as focal point for LNG imports

According to the VCBS report, PV Gas, a subsidiary of Petrovietnam, serves as the key importer of LNG from the U.S., ensuring medium- and long-term fuel supply amid a shifting energy landscape.

To ensure supply capacity, PV Gas has increased the regasification capacity at Thi Vai LNG Terminal in Ba Ria-Vung Tau from 5.7 million Sm³ (standard cubic meters) per day to 7 million Sm³/day since March 2025.

The expansion aims to provide reserve capacity for state utility Vietnam Electricity (EVN) during the dry-season peak, meet gas demand for power generation in the southeast region, and support the trial runs and commercial operations of the Nhon Trach 3 and 4 plants.

PV Gas is also developing a central LNG hub model, focusing on constructing key LNG terminals in the northern and north-central regions.

From 2026 to 2029, PV Gas said it will additionally operate a floating storage and regasification unit (FSRU) at PV Gas Vung Tau Terminal. With a storage capacity of 135,000-174,000 Sm³ LNG and regasification capacity of up to 14 million Sm³/day, the FSRU will raise the total system regasification capacity to 22 million Sm³/day.

PV Gas and the U.S.-based LNG business Excelerate Energy will collaborate on a plan to secure reliable and stable LNG supply sourced from the U.S. as early as 2026 under an MoU signed in March.

Petrovietnam makes strong performance

VCBS said in the first four months of the year, Petrovietnam reported strong performance across key sectors.

The group completed the Dai Hung oil field project phase 3 offshore Vietnam 20 days ahead of schedule, with the project entirely executed by Vietnamese engineers within its ecosystem.

The achievement contributes to boosting output and securing feedstock for power generation during the dry season, particularly for the Nhon Trach 3 and 4 plants, the broker said.

Fertilizer production also exceeded targets, with the Ca Mau and Phu My plants in southern Vietnam effectively meeting domestic demand while accelerating exports. Notably, Petrovietnam Ca Mau Fertilizer JSC in Ca Mau province secured the highest export certification for the Australian market, expanding its international footprint.

Petrovietnam’s international cooperation has expanded significantly, exemplified by the 20-year extension of the Production Sharing Contract (PSC) for Block PM3 CAA with Malaysia’s Petronas, and the signing of a cooperation agreement with KazMunayGas (KMG), the national oil and gas company of Kazakhstan, in oil and gas exploration and energy.