Signing PSC Block 15-1: Ensuring sustainable production output of Petrovietnam

On the afternoon of June 20, Petrovietnam and its joint venture partners officially signed the Product Sharing Contract (PSC) for Block 15-1 in the southern continental shelf of Vietnam.

This is an important event, affirming the determination and capacity of the Vietnam National Oil and Gas Group ( Petrovietnam ) in continuing to promote oil and gas exploration and exploitation activities, contributing to stabilizing the country's energy supply.

Block 15-1 is one of the oil and gas blocks of special strategic significance for the exploration and exploitation activities of Petrovietnam and the Oil and Gas Exploration and Production Corporation (PVEP).

Initially, Block 15-1 was operated under a joint venture model, bringing together five international and domestic partners, including PVEP, ConocoPhillips Cuu Long (UK), KNOC and SK (Korea) and Geopetrol (Monaco). Later, Perenco (France - UK) took over the capital of ConocoPhillips to continue its operating role.

Under the form of joint operation through Cuu Long Joint Operating Company (Cuu Long JOC), this is one of the rare "large-scale" joint ventures in the Vietnamese oil and gas industry.

In the newly signed PSC, PVEP holds 59%, Perenco holds 19.8%, KNOC holds 11.4%, SK holds 7.2% and Geopetrol holds 2.6%.

Today’s signing ceremony officially kicks off Phase 2B of the White Lion Project, a major $1.3 billion investment, said a Perenco representative. This is not just a commercial agreement, but also a major step towards ensuring energy security for Vietnam. When completed, the project will supply 125 billion standard cubic feet of natural gas per day to the domestic market.

In the newly signed PSC, PVEP holds 59%, Perenco holds 19.8%, KNOC holds 11.4%, SK holds 7.2% and Geopetrol holds 2.6%. Compared to the previous PSC, PVEP's holding ratio has increased by 9% and other partners have also made adjustments.

Since its discovery and development, Block 15-1 has continuously contributed large production output, high economic efficiency and played a role as one of the pillars of national oil and gas production over the past many years.

In 2003, the first oil was extracted from the Black Lion field, quickly turning this area into one of the bright spots in Vietnam's offshore oil and gas production, with estimated reserves of about 600 million barrels of oil, second only to the White Tiger field.

Minister of Industry and Trade Nguyen Hong Dien awarded the investment certificate to the joint venture.

After Black Lion, the Golden Lion (exploited since 2005), White Lion (since 2012) and Brown Lion (since 2008) mines were developed in turn. Each project became a new lesson in technology, resources and optimal exploitation strategy. The entire mine cluster forms a synchronous, most modern exploitation - processing - transportation system in Vietnam, with CPP, FPSO platforms, WHP platforms and a seamless pipeline system.

Block 15-1 is located in the Cuu Long basin in the southern mainland of Vietnam, including the oil and gas fields being exploited: Black Lion, Golden Lion, Brown Lion and White Lion. This is one of the oil and gas blocks with large reserves and was put into exploitation the earliest in Vietnam.
Project Lot 15-1 has achieved remarkable achievements:
- December 2027 reaches 100 million barrels of oil
- March 2011 reached 200 million barrels
- June 2016 reached 300 million barrels
- 2019 reached 350 million barrels
- November 11, 2022 reached 400 million barrels.
By 2024, the total output of the project will be more than 426 million barrels and more than 216 billion cubic feet of gas, bringing in total revenue of more than 31 billion USD, of which the contribution to the State budget will be more than 15 billion USD.

It should be added that not many offshore oil and gas blocks in Vietnam possess both large-scale commercial oil and gas fields. Block 15-1 is one of the few rare exceptions. Here, oil fields such as Black Lion, Golden Lion, and Brown Lion operate in parallel with the White Lion gas field - creating an integrated exploitation ecosystem, optimizing both technical infrastructure and operational efficiency.

Thanks to its diversified exploitation structure, Block 15-1 not only provides stable crude oil to the domestic market through Dung Quat Oil Refinery but also brings natural gas ashore to serve the gas industry in the Southeast region. This dual role has made Block 15-1 one of the strategic pillars in the national energy system.

With a series of mines discovered and continuously put into exploitation, Cuu Long Petroleum Operating Company (CLJOC) - the unit exploiting and developing projects at Block 15-1 has become the 2nd largest oil exploiter in Vietnam.

Deputy Prime Minister Bui Thanh Son spoke at the signing ceremony.

Speaking at the signing ceremony, Deputy Prime Minister Bui Thanh Son said that Block 15-1 has been in operation for 27 years, has 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. These are very impressive figures, not only demonstrating the economic efficiency of the industry, but also an important contribution to the socio-economic development of the country in recent years.

According to the Deputy Prime Minister, Vietnam continues to persistently and consistently implement the reform policy; proactively and actively integrate into the international community; and set the goal of becoming a developing country with modern industry and high average income by 2030; and becoming a developed country with high income by 2045. Accordingly, Vietnam strives to achieve a growth rate of over 8% in 2025 and double digits in the next period, preparing to enter the "New Era - the era of national development".

The newly signed contract will facilitate the continued efficient exploitation of existing mines, while opening up opportunities to discover and develop new potential structures in the area.

Maintaining and expanding exploitation activities at Block 15-1 also contributes to ensuring national energy security, while maintaining Vietnam's strong presence in sovereign waters.

“In the coming time, the demand for energy for development is very large, clearly shown in the recent Adjustment of the 13th Power Plan. The early and highly effective implementation of key energy projects, oil and gas projects, and important oil and gas contracts, such as PSC Block 15-1 today, plays a very important role in contributing to achieving the goals of developing the national oil and gas industry, ensuring energy security and socio-economic development of the country,” Deputy Prime Minister Bui Thanh Son emphasized.

Currently, PVEP - Petrovietnam's main unit in the field of exploration and exploitation - continues to assume the role of operator at many key oil and gas fields, of which Block 15-1 is a typical example of mine management capacity and operational efficiency. With the experience accumulated from the exploitation process at Bach Ho, Rong, Su Tu Den, Su Tu Vang, etc., continued investment in Block 15-1 promises to create great added value for the Vietnamese oil and gas industry in the coming period.

The signing of the PSC contract for Block 15-1 continues to affirm the correct policy of the Party and State on effectively exploiting oil and gas resources, associated with developing the marine economy and preserving national sovereignty. At the same time, this is also a concrete step in realizing the Petroleum Law 2022 towards the goals of developing sustainable and modern national energy.

Source: https://baodautu.vn/ky-ket-psc-lo-15-1-bao-dam-san-luong-khai-thac-ben-vung-cua-petrovietnam-d309076.html