PetroVietnam has announced the commencement of the first commercial oil flow from the Đại Hùng oilfield phase three project.
The state-owned oil and gas group acquired the field in 2003 for a nominal $1 after it was abandoned by international contractors.
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The Deputy Prime Minister of Vietnam, Bùi Thanh Sơn, hailed the project as a testament to the nation’s energy sector capabilities.
Since taking over the Đại Hùng oilfield, PetroVietnam has faced numerous challenges including low oil prices and technical difficulties. However, the company has successfully turned the field into a profitable venture.
The project has been a success story for PetroVietnam, with steady production since 2005 and better financial results.
In 2024, the oilfield generated $4bn in revenue and contributed $600m in taxes.
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By GlobalDataThe phase three project, which began in 2022 and uses solely domestic resources, has already achieved a daily production rate of 6,000 barrels, starting 20 days ahead of schedule.
The Deputy Prime Minister emphasised the need for PetroVietnam to continue innovating and adopting new technologies to maximise efficiency.
The Đại Hùng oilfield is expected to produce an additional 76 million barrels (mbbl) of oil, with total revenue reaching $6.4bn by 2034.
Oil and gas exploration and production (E&P) is the core field of Petrovietnam. Effective oil and gas E&P activities have allowed Vietnam to have the second-largest oil reserves in South East Asia.
Hibiscus Petroleum recently secured a 20-year extension for the PM3 Commercial Arrangement Area production sharing contract and upstream gas sales agreement.
The agreement, which involves Hibiscus Oil & Gas Malaysia, Petronas and PetroVietnam, will be effective from 1 January 2028 to 31 December 2047, with Hibiscus Oil & Gas Malaysia remaining the operator.
