Petrovietnam Signs Strategic Oil and Gas Contracts, Unlocking Billions of Cubic Meters of Gas and New Offshore Resources
On June 19, 2026, at 19:00 in Hanoi, the Vietnam National Oil and Gas Group (Petrovietnam) hosted a ceremony to sign Production Sharing Contracts (PSC) for Blocks 10/11 and 10&11-1, along with a Gas Sales and Purchase Agreement (GSPA) for the Su Tu Trang Phase 2B field in Block 15-1. This landmark event marks a significant milestone in Vietnam's energy sector development.
High-Level Attendance
The ceremony was attended by prominent government officials including Mr. Pham Gia Tuc, Member of the Politburo and Deputy Prime Minister, and Mr. Le Manh Hung, Member of the Central Party Committee and Minister of Industry and Trade. Leaders from various central ministries and departments were also present, underscoring the national importance of these energy projects.
Images from the signing ceremony showed Petrovietnam and Petrovietnam Exploration and Production Corporation (PVEP) leaders formally exchanging contracts in the presence of government representatives and energy sector regulators.
Why This Event is Considered a Major Milestone
In the context of global energy markets continuously affected by geopolitical conflicts, supply chain disruptions, and long-term supply shortage risks, developing additional oil and gas fields helps Vietnam:
- Enhance energy self-sufficiency
- Reduce dependence on imported sources
- Supplement gas resources for power generation
- Maintain national oil and gas production levels
- Create long-term revenue streams for the national budget
Details of the Signed Projects
| Project | Basin | Description |
|---|---|---|
| PSC Block 10/11 | Nam Con Son Basin | Development of new oil and gas discoveries |
| PSC Block 10&11-1 | Nam Con Son Basin | Offshore resource extraction |
| GSPA Su Tu Trang 2B | Block 15-1 | Commercial gas sales to power generation systems |
A Multi-Year Journey to Today's Signing Ceremony
Blocks 10/11 and 10&11-1 were previously considered extremely challenging projects to implement due to:
- Complex geological conditions
- High offshore investment costs
- Historically low oil prices
- Incomplete extraction infrastructure
- Limited economic attractiveness
However, over many years, PVEP has continuously updated geological models, evaluated reserves, optimized extraction methods, and leveraged existing infrastructure at the Dai Hung field. The combination of new technologies, operational experience, and available infrastructure has enabled these long-stalled projects to achieve commercial viability.
Notable Geological Structures
The prospective areas mentioned in the project include:
- Ca Cho (Catfish)
- Gau Chua (Tigress)
- Gau Ngua (Mare)
These are all hydrocarbon structures that have been studied extensively and are evaluated as having significant potential to add substantial resources to Vietnam's reserves.
What Su Tu Trang Phase 2B Brings
The gas purchase agreement was signed between Petrovietnam and partners in the Block 15-1 PSC, including:
- PVEP
- Perenco
- KNOC (Korea National Oil Corporation)
- SKEO (Korea Gas Corporation)
- Geopetrol
The project aims to bring first gas into production by late 2027.
Expected Production Metrics
| Indicator | Value |
|---|---|
| Commercial gas production | Approximately 1.2 billion m³/year |
| First gas timing | Late 2027 |
| Consumption area | Southeastern region |
Power Plants Benefiting from the Project
The gas source from Su Tu Trang 2B is expected to supply major gas power centers such as:
- Phu My Power Center
- Nhon Trach Power Plant
- Gas power complexes in the Southeast region
This will enhance the stability of the national power system as electricity demand continues to surge strongly between 2026 and 2035.
Expected Economic Impact
| Benefits | Impact |
|---|---|
| Increased extraction volume | Growth in oil and gas revenue |
| Additional gas source | Support for power generation |
| Increased offshore investment | Creation of high-skilled jobs |
| Maintaining existing infrastructure | Reduced extraction costs |
| Increased reserves | Secured long-term supply |
Strategic Significance in the East Sea
Beyond economic factors, maintaining exploration and production activities in offshore oil blocks also helps affirm Vietnam's sovereignty, jurisdiction, and legitimate economic presence on its continental shelf and exclusive economic zone. This factor has been particularly emphasized by the oil and gas industry for many decades.
Petrovietnam Opening a New Growth Cycle
The simultaneous signing of PSCs for Blocks 10/11, 10&11-1 and the GSPA for Su Tu Trang 2B demonstrates that Petrovietnam and PVEP are not only focusing on maintaining existing production volumes but are also proactively creating new growth drivers.
If these projects are implemented on schedule, Vietnam will gain a stable gas source for power generation, increase recoverable oil and gas reserves, and strengthen the foundation of national energy security for many years to come.
Could this be the signal for a new wave of offshore oil and gas investment in Vietnam after years of stagnation? The future of Vietnam's energy sector during the 2026-2035 period remains to be seen, but these recent developments certainly point toward renewed confidence in the country's offshore potential.