State-owned Petrovietnam and its joint venture partners signed a new production sharing contract (PSC) on Friday for Block 15-1, a key oil and gas concession located on the continental shelf off southern Vietnam.
Since its discovery, Block 15-1 has been a cornerstone of Vietnam’s oil production, consistently delivering high output and substantial economic benefits. Operated by the Cuu Long Joint Operating Company (CLJOC), the block has emerged as the country’s second-largest oil producer.
CLJOC was established on September 16, 1998, following the original Block 15-1 contract between Petrovietnam and a consortium of international contractors including PVEP, Anglo-French firm Perenco, Korea National Oil Corporation (KNOC), South Korea’s SK Group, and Geopetrol.
The significance of Block 15-1 extends beyond production volumes. It has marked several key milestones over its 27 years of operation: reaching 100 million barrels in 2007, 200 million in 2011, 300 million in 2016, 350 million in 2019, and surpassing 400 million barrels by November 2022. To date, the block has yielded approximately 430 million barrels of oil, generating over $31 billion in revenue and contributing nearly $15 billion to Vietnam’s national budget.
The renewed PSC sets the stage for sustained efficient production from existing fields while creating opportunities to explore and develop new reserves. This contract is vital for securing Vietnam’s energy future and strengthening its sovereign presence in maritime zones.
Petrovietnam Exploration Production Corporation (PVEP), Petrovietnam’s core exploration and production subsidiary, continues to lead operations across critical fields. Block 15-1 exemplifies PVEP’s proven capabilities in field management and operational efficiency. Drawing on experience from major fields such as Bach Ho (White Tiger), Rong (Dragon), Su Tu Den (Black Lion), and Su Tu Vang (Golden Lion), further investment in Block 15-1 is expected to generate significant value for the nation’s oil and gas sector in the coming years.
At the signing ceremony, Deputy Prime Minister Bui Thanh Son commended Petrovietnam, PVEP, and CLJOC for their outstanding achievements. He highlighted the contract renewal as a major milestone demonstrating strong collaboration between domestic and international partners.
With national energy demand rising, the timely and effective execution of energy projects, particularly key PSCs, is critical for Vietnam’s petroleum industry development, energy security, and socio-economic progress, Deputy PM Son stressed.
He urged Petrovietnam and its member companies to “think big, act bold” and enhance their competitiveness and adaptability to meet evolving challenges, aiming to position Petrovietnam as a leading regional and global energy group.
