Signing a contract to share oil and gas products that once had revenue of over 31 billion USD

Block 15-1 exploited about 430 million barrels of oil, achieved total revenue of over 31 billion USD and paid nearly 15 billion USD to the state budget.

Block 15-1 is one of the oil and gas blocks of strategic significance - Photo: Q.CHUNG

On June 20, the Vietnam National Oil and Gas Group ( Petrovietnam ) and its joint venture partners officially signed a product sharing contract (PSC) for Block 15-1 in the southern continental shelf of Vietnam.

More than 430 million barrels of oil were extracted.

Block 15-1 is one of the strategic oil and gas blocks operated by Petrovietnam and the Petroleum Exploration and Production Corporation (PVEP). In which, Cuu Long Petroleum Joint Operating Company (CLJOC) - the unit that exploits and develops projects at Block 15-1 - has become the second largest oil operator in Vietnam.

Immediately after the discovery of oil and gas at the first exploratory well at the Black Lion field, a number of new discoveries were continuously announced and put into exploitation such as Golden Lion (October 2008), White Lion (September 2012) and Brown Lion (September 2014).

The Block 15-1 project has set a milestone of successfully exploiting 400 million barrels of oil on November 11, 2022. After 27 years of operation, Block 15-1 has exploited about 430 million barrels of oil, achieved total revenue of over 31 billion USD and contributed nearly 15 billion USD to the state budget.

Therefore, the newly signed contract will facilitate the continued effective exploitation of operating mines. This will open up opportunities to discover and develop new potential structures, contributing to ensuring energy security and maintaining Vietnam's strong presence in sovereign waters.

According to Deputy Prime Minister Bui Thanh Son, this event is a very important milestone in the development process of Vietnam's oil and gas industry, a clear demonstration of the close and effective cooperation between PVN and PVEP with international partners.

In the context of huge energy demand for development, the implementation of key energy projects, oil and gas projects, and oil and gas contracts is very important. In which, PSC Block 15-1 is recognized to play a very important role in contributing to the development of the oil and gas industry, ensuring energy security and socio-economic development.

Effective exploitation of national resources

Deputy Prime Minister Bui Thanh Son - Photo: Q.CHUNG

Accordingly, the Deputy Prime Minister requested Petrovietnam and its member units to exploit and effectively use the country's precious resources. Closely follow programs and action plans, seize opportunities, and be determined to overcome challenges; proactively and actively work with partners to remove difficulties and obstacles, and speed up project progress.

There is still much work to be done to effectively implement the Block 15-1 oil and gas contract. The Deputy Prime Minister emphasized the spirit of "what is said must be done, what is committed must be done, what is done must have results, implementing work with focus and key points, completing each task thoroughly, avoiding spreading out and prolonging" according to the Prime Minister's direction.

Therefore, the parties in PSC Lot 15-1 need to promote the highest sense of responsibility, cooperate closely and effectively, mobilize and use the strongest and optimal resources, to well perform the committed tasks and obligations, achieve high results in production and business, and ensure good material and spiritual life for workers.

After more than two years of pursuit and 20 meetings and negotiations, on June 5, the Prime Minister approved the plan to sign a new PSC more than three months before the end of the current contract, with PVEP as the operator with a capital contribution ratio of 59%.

In the future, the White Lion Phase 2B project is expected to have the first gas flow from early wells on the existing platform in June 2026, and from the central gas processing platform (ST-CGF) in December 2027.

Along with that are projects to develop exploitation at existing mines, as well as to expand exploration of 3 committed wells with an estimated amount of oil and gas in place of about 600 million barrels of oil and 500 Bcf of gas; deploying the first well in 2026.

NGOC AN

Source: https://tuoitre.vn/ky-hop-dong-phan-chia-san-pham-lo-dau-khi-tung-co-doanh-thu-tren-31-ti-usd-2025062018353982.htm