Vietnam's oil rig demand set to soar with new projects

Vietnam is projected to see a sharp rise in demand for oil and gas drilling rigs in 2025, underpinned by the accelerated implementation of a number of large-scale energy projects, including Dai Hung Phase 3, Su Tu Trang Phase 2B, and Block B - O Mon.

Nguyen Xuan Cuong, general director of PetroVietnam Drilling and Well Services Corporation (PV Drilling), a subsidiary of Petrovietnam, noted that significant developments such as Block B - O Mon, Dai Hung Nam, and Su Tu Trang are entering key deployment stages this year.

Meanwhile, recent discoveries like Hai Su Vang and Lac Da Hong are set for development in the near future, offering PV Drilling new opportunities to bolster its foothold in the domestic market.

Cuong revealed that the PV Drilling 8 rig, newly acquired in 2024, is slated to commence operations in Vietnam by September, while PV Drilling 6 will return from overseas to serve a contract at Block B - Phu Quoc in mid-2027, positioning the company for stronger revenue growth.

Amid a slowdown in the Middle East’s rig activity, which has temporarily sidelined approximately 30 rigs and affected global supply, Southeast Asia remains resilient, maintaining a rig utilization rate of up to 97%. This has helped stabilize rental prices across the region. PV Drilling’s rigs continue to perform steadily in Malaysia, Brunei, and Indonesia, supported by the firm's cost-effective and time-efficient rig and manpower services.

PV Drilling’s competitive edge lies in its full-package service offering, providing not only drilling rigs but also comprehensive technical services needed to complete a well. Its rigs from PV Drilling 1 to 6 have secured contract extensions through 2027. The firm is also expanding into post-drilling services, including well intervention, LNG-related operations, and decommissioning engineering.

For 2025, PV Drilling has set its sights on consolidated revenue of VND7.2 trillion ($276.5 million) and post-tax profit of VND530 billion, both down 25% year-on-year due to anticipated headwinds from global economic fluctuations.

In 2024, PV Drilling made notable strides in regional markets, expanding geological and equipment rental services in Malaysia and sustaining workforce provision in Japan. Domestically, it spearheaded key operations such as the Phase 3 drilling at Dai Hung field (Block 05-1a) and Vietnam’s first decommissioning project at Song Doc field, in collaboration with PVD-POS.

The company also scaled up investments last year, acquiring the PV Drilling 8 jack-up rig, upgrading drilling equipment, and expanding facilities. By year-end, it had begun establishing a joint venture in Indonesia, a strategic step in its long-term vision to “reach further seas, secure a sustainable future”.