The journey to revive Dai Hung mine from 1 USD to 4 billion USD

Vietnam National Oil and Gas Group ( Petrovietnam ) said that the Dai Hung field development project phase 3 has just officially put into operation the first oil flow with a flow of 6,000 barrels/day - reaching the finish line 20 days ahead of the adjusted plan.

According to Petrovietnam, looking back at history, in 2003, Petrovietnam received the transfer of Dai Hung mine from the International Contractors Consortium after these units assessed that the mine was not economically efficient. At that time, the book value of the mine was only... 1 USD. But with strategic vision, pioneering spirit and determination to be self-reliant, Petrovietnam has turned Dai Hung mine into a symbol of revival and sustainable development, of which the Dai Hung mine development project phase 3 welcoming the first commercial oil flow is a clear proof, thereby affirming Petrovietnam's solid position in the Vietnamese energy industry.

To continue operating the Dai Hung mine, in October 2003, at the request of Petrovietnam, the Government decided to assign the right to directly conduct oil and gas operations at Dai Hung mine to the Petrovietnam Exploration and Production Corporation (PVEP) with the responsibility of operating the mine safely and with the highest efficiency. The operator is Dai Hung Petroleum Company, the predecessor of the Domestic Oil and Gas Operations Branch (PVEP-POC) - a member unit of PVEP.

In the initial stage, PVEP-POC encountered many difficulties when taking over Dai Hung field due to the characteristics of the field as well as the fact that the oil price was only over 10 USD/barrel at one point, and almost only exploited to hold on, even at times intending to stop operations. However, in a situation where it could no longer retreat, PVEP-POC urgently implemented activities such as drilling new exploration and appraisal wells, completing the wells in operation, and put Dai Hung field back into operation from the beginning of 2005 with significantly increased production output after connecting new exploitation wells.

Recently, the average annual production of Dai Hung mine is about 2.6 - 2.8 million barrels of oil. By the end of 2024, the revenue will reach over 4 billion USD, contributing over 600 million USD to the state budget, actively contributing to the discovery and development of neighboring mines, which is a solid milestone of national sovereignty.

According to Petrovietnam, the Dai Hung Field Development Project Phase 3 is a key project in maintaining production output at Dai Hung Field, improving recovery rates, and increasing economic efficiency. At the same time, the project also opens up opportunities for continued exploration and expansion at Block 05.1(a) and neighboring blocks - a long-term strategy in ensuring energy security and national sovereignty over seas and islands.

The project is implemented entirely with domestic resources, with 100% Vietnamese staff, engineers and experts from key units of Petrovietnam such as Vietsovpetro Joint Venture, Vietnam Oil and Gas Technical Services Corporation (PTSC), Oil and Gas Drilling and Well Services Corporation (PV Drilling), operated by PVEP-POC Company.

The fact that an offshore development project, with a depth of more than 110m, was carried out entirely by Vietnamese people is a historic step forward, affirming the capacity to master large oil and gas projects - a field that requires high technical skills, close coordination and the ability to cope with harsh operating conditions.

Minh Huu

Source: https://baophapluat.vn/hanh-trinh-vuc-day-mo-dai-hung-tu-1-usd-len-4-ty-usd-post549134.html