Contract Signing for DH-18X Exploration and Dai Hung Nam Project Marks New Phase in Vietnam's Oil & Gas Production Enhancement Campaign
Ho Chi Minh City, June 9, 2026 — In a significant development for Vietnam's energy sector, the Exploration and Production Branch of Nam Con Son Petroleum Company (PVEP-NCS) and PV Drilling have officially signed a contract for the lease of a self-elevating drilling rig to serve the DH-18X exploration well program and development wells in the Dai Hung Nam (DHN) area, Block 05-1(a), Nam Con Son Basin.
The ceremony, attended by representatives from PVEP, PV Drilling, and Borr Drilling, marks another important step in cooperation between entities within the national energy ecosystem. This partnership raises critical questions about whether the DH-18X campaign and Dai Hung Nam project could usher in a new growth phase for Vietnam's oil and gas industry amid increasing energy demand.
Significance of the Dai Hung Nam Project
Dai Hung Nam currently stands as one of the key offshore oil and gas projects in southern Vietnam. The project represents a critical component in Petrovietnam's efforts to maintain and increase domestic production capacity.
According to technical documentation provided:
- Located in Block 05-1(a), Nam Con Son Basin
- Approximately 265 km from the coast
- Water depth of approximately 110 m
- Expected to add approximately 10,000 barrels of oil per day upon commercial production
- Part of PVEP's strategy to maintain and increase domestic production volumes
Why DH-18X Attracts Attention
The DH-18X well is a crucial exploration well with multiple objectives:
- Evaluate additional oil and gas potential in the Dai Hung area
- Increase reserves for Block 05-1(a)
- Search for new oil reservoirs to serve long-term development strategy
- Establish the basis for subsequent field development programs
2026 tender documents indicate that DH-18X is being implemented concurrently with the Dai Hung Nam development campaign, demonstrating it as a high-priority program for PVEP-NCS.
The Role of Jack-up Rigs in Offshore Operations
Self-elevating drilling rigs (Jack-up Rigs) are widely used in Vietnam's continental shelf operations. These specialized vessels offer several advantages for offshore drilling activities:
| Advantage | Description |
|---|---|
| Stability | Operational stability in offshore environments |
| Cost Efficiency | Better cost efficiency compared to semi-submersible rigs |
| Geological Suitability | Well-suited for Nam Con Son geological conditions |
| Deployment Speed | Rapid deployment capabilities |
| Safety | Ensures safety during exploration and field development drilling |
Borr Drilling currently ranks among the world's largest providers of modern jack-up rigs, with numerous units operational throughout Southeast Asia.
Implications for PV Drilling
Being selected for key drilling campaigns continues to benefit PV Drilling in multiple dimensions:
| Indicator | Significance |
|---|---|
| Revenue | Increases service backlog |
| Rig Utilization | Maintains high utilization rates |
| Brand | Confirms domestic capabilities |
| Supply Chain | Promotes accompanying oil and gas technical services |
| Technology | Enhances offshore operational experience |
Prior to this contract, PV Drilling had also participated in several important packages at Dai Hung Phase 3 using the bundled services model.
Impact on Energy Security
In the current context where:
- Production from many traditional fields is naturally declining
- Energy demand continues to rise
- Vietnam is accelerating LNG development but still requires domestic oil and gas resources
- Energy security has become a national priority
Projects like Dai Hung Nam and DH-18X play a crucial role in maintaining domestic production volumes, reducing import dependence, and adding to state budget revenue.
Key Project Statistics
| Parameter | Detail |
|---|---|
| Project | Dai Hung Nam (DHN) | Block | 05-1(a) |
| Sedimentary Basin | Nam Con Son |
| Water Depth | Approximately 110 m |
| Distance from Shore | Approximately 265 km |
| Target First Oil | Early 2027 |
| Expected Production | Approximately 10,000 barrels of oil per day |
| Participating Entities | PVEP-NCS, PV Drilling, Borr Drilling, PVEP |
Conclusion
This contract signing ceremony represents more than just a drilling services agreement—it reflects the determination of Vietnam's energy industry to expand exploration, develop new fields, and ensure long-term energy supply for the national economy.
As Vietnam continues to balance its energy transition with immediate production needs, projects like DH-18X and Dai Hung Nam demonstrate the critical role of domestic oil and gas resources in the country's energy mix. The successful implementation of these projects will not only contribute to energy security but also support economic growth and technological advancement in Vietnam's petroleum sector.