The signing ceremony of several key oil and gas agreements in Hanoi not only paves the way for the development of new offshore energy resources in Vietnam but is also expected to provide an additional gas supply for power generation, contributing to national energy security and supporting economic growth in the coming years.

On June 19 in Hanoi, Vietnam National Industry - Energy Group (Petrovietnam) signed Production Sharing Contracts (PSCs) for Blocks 10/11 and 10&11-1, and simultaneously signed a Gas Sales and Purchase Agreement (GSPA) for White Lion (Su Tu Trang) Field – Phase 2B in Block 15-1.

The ceremony was witnessed by Permanent Deputy Prime Minister Pham Gia Tuc, Minister of Industry and Trade Le Manh Hung, and leaders of various ministries and central agencies.

Removing long-standing obstacles to bring new oil and gas fields into production

Blocks 10/11, 10&11-1, and 15-1 are located in the Nam Con Son and Cuu Long sedimentary basins offshore Vietnam, areas with a long history of oil and gas production that have made significant contributions to the country's oil and gas output.

According to Petrovietnam, these projects not only generate economic value but also help maintain offshore oil and gas activities, thereby reaffirming Vietnam's sovereignty, sovereign rights, and jurisdiction over its continental shelf.

The PSCs for Blocks 10/11 and 10&11-1 were signed between Petrovietnam and PVEP. The contracts are considered an important step toward bringing existing oil and gas discoveries into commercial production, while continuing exploration activities to increase reserves as many mature oil and gas fields enter the stage of natural production decline.

Supplying an additional 1.2 billion cubic meters of gas annually for Southeast Vietnam's gas-to-power chain

Along with the PSCs for the new oil and gas blocks, Petrovietnam and its partners also signed the Gas Sales and Purchase Agreement (GSPA) for White Lion (Su Tu Trang) Field – Phase 2B in Block 15-1.

The parties to the agreement include PVEP, Perenco, KNOC, SKEO, and Geopetrol. This marks the next implementation step following the signing of the PSC for Block 15-1 in 2025, creating the foundation for the White Lion Field – Phase 2B development project to achieve its target of delivering first gas by the end of 2027.

According to estimates, the project will supply approximately 1.2 billion cubic meters of natural gas per year to the market. The gas will be delivered to major gas-fired power generation centers in Southeast Vietnam, including the Phu My Power Center and the Nhon Trach power plants.

The signing of these agreements further reinforces the role of Petrovietnam and PVEP in developing new energy resources, contributing to the goal of ensuring national energy security, promoting economic growth, and enhancing the competitiveness of Vietnam's economy in the new development phase.