Petrovietnam, along with its joint venture partners, has officially signed a product sharing contract (PSC) for Block 15-1 on the Southern Continental Shelf of Vietnam.

This move is pivotal in reinforcing Petrovietnam's commitment to further oil and gas exploration and exploitation, which is crucial for the stability of the nation's energy resources.

Block 15-1 is considered a block of special strategic importance to Petrovietnam and the Oil and Gas Exploration and Production Corporation (PVEP).

Initially, the block was operated by a consortium of five international and domestic partners.

Following changes, Perenco has now assumed the operational role previously held by ConocoPhillips.

The joint venture operates through Cuu Long Joint Operating Company (Cuu Long JOC), and is one of the few large-scale collaborations within the Vietnamese oil and gas sector.

In the updated PSC, PVEP has increased its stake to 59%, with Perenco, KNOC, SK and Geopetrol holding 19.8%, 11.4%, 7.2% and 2.6%, respectively.

Since its inception, Block 15-1 has been a significant contributor to Vietnam's oil and gas output, demonstrating high economic efficiency.

It has been a cornerstone of the country's production for many years. The block, located in the Cuu Long basin, encompasses several active oil and gas fields.

The Black Lion field, discovered in 2003, quickly became a focal point for offshore production in Vietnam, boasting estimated oil reserves of around 600 million barrels (mbbl). This figure is second only to the reserves of the White Tiger field.

By 2024, the project was expected to produce more than 426mbbl of oil and more than 216 billion cubic feet of gas, generating revenues exceeding $31bn (VND812.57trn), with more than $15bn contributed to the State budget.

Last month, PetroVietnam announced the commencement of the first commercial oil flow from the Đại Hùng oilfield phase three project.