Hanoi (VNA) - The Vietnam National Industry-Energy Group (Petrovietnam) on June 19 signed Production Sharing Contracts (PSCs) for Blocks 10/11 and 10&11-1, along with a Gas Sales and Purchase Agreement (GSPA) for Phase 2B of the Su Tu Trang (White Lion) gas field in Block 15-1.

Permanent Deputy Prime Minister Pham Gia Tuc and Minister of Industry and Trade Le Manh Hung witnessed the signing.

The agreements underscore the commitment of Petrovietnam, the Petrovietnam Exploration Production Corporation (PVEP) and their partners to advancing oil and gas exploration, development and production activities, contributing to national energy security, optimising existing resources and creating new growth drivers for Vietnam’s energy industry.

The projects support the implementation of Vietnam’s national energy development strategy to 2030 with a vision to 2045, while contributing to Petrovietnam’s growth targets and broader government efforts to achieve double-digit economic growth.

Blocks 10/11, 10&11-1 and 15-1 are located in the Nam Con Son and Cuu Long basins offshore Vietnam, areas that have long played an important role in maintaining the country’s oil and gas reserves and output, with promising structures including Ca Cho, Gau Chua and Gau Ngua.

For many years, project development faced challenges due to complex geology, high investment requirements, limited economic viability under past market conditions and infrastructure constraints. However, advances in technology, updated geological assessments, optimised development plans and the effective use of existing infrastructure at the Dai Hung field operated by PVEP have gradually removed these obstacles.

Developing Blocks 10/11 and 10&11-1 alongside PVEP’s existing projects in the area will maximise the use of current facilities and experienced personnel, helping improve resource recovery and support economic growth. Continued oil and gas operations in the blocks also contribute to affirming Vietnam’s sovereignty, sovereign rights and jurisdiction over its continental shelf in the East Sea.

The signing of the PSCs opens opportunities to commercialise existing discoveries, demonstrates the attractiveness of Vietnam’s oil and gas investment environment and reflects Petrovietnam’s and PVEP’s determination to expand exploration activities and increase reserves as mature fields enter natural decline.

The GSPA for Phase 2B of the Su Tu Trang (White Lion) gas field was signed between Petrovietnam and the Block 15-1 PSC partners, including PVEP, Perenco, KNOC, SKEO and Geopetrol. The agreement marks a significant step following the signing of the Block 15-1 PSC in 2025 and lays the foundation for PVEP Cuu Long to implement the Phase 2B development plan, targeting first gas by the end of 2027.

As gas demand for power generation and industrial production in southeastern Vietnam continues to rise, the project is expected to provide around 1.2 billion cubic metres of gas annually. Supplies from Block 15-1 will help ensure stable fuel sources for key gas-fired power plants, including the Phu My Power Centre and Nhon Trach power plants, while improving utilisation of existing gas infrastructure and strengthening national energy security.

The project is also expected to enhance the efficiency of the regional gas-to-power value chain, strengthen linkages across the petroleum sector and create new momentum for future gas and electricity development.

Addressing the signing ceremony, Minister of Industry and Trade Le Manh Hung said the signing of the PSCs reaffirmed the Party’s and State’s policy of supporting Petrovietnam and PVEP in expanding oil and gas operations, and pledged continued support from the Ministry of Industry and Trade to facilitate project implementation in line with Vietnamese law and international practices./.