Hanoi (VNA) – Vietnam and Japan signed a landmark 25-year production sharing contract (PSC) for oil and gas exploration in Block 15-2 of Cuu Long basin in Vietnam’s southern waters on March 31.
The contract, secured by the Vietnam Oil and Gas Group (PetroVietnam), Japan Vietnam Petroleum Company Limited (JVPC, a wholly-owned subsidiary of Japan’s ENEOS Xplora), and PetroVietnam Exploration Production Corporation (PVEP), will begin on April 7, 2025.
At the signing ceremony, Deputy Prime Minister Bui Thanh Son laid stress on the significance of foreign investments to Vietnam’s key economic sectors, particularly in oil and gas exploration. He said cooperation with foreign partners, including Japanese firms boasting advanced technologies, not only facilitates new technology transfer for the oil and gas sector but also helps PetroVietnam establish its position on the global oil and gas map.
Son noted the Block 15-2 contract is a crucial step after the 2022 Law on Oil and Gas took effect, urging contractors to carry out their commitments to maximise the productivity of the block as well as enhance oil recovery rate – an important task to ensure energy security.
He stated that the collaboration between PetroVietnam and Japanese partners over the past years has made significant contributions to the comprehensive and deep relationship between Vietnam and Japan. He asked PetroVietnam to work with competent sides to study and pen initiatives facilitating both domestic and foreign investments while removing bottlenecks for the investors in the spirit of harmonious benefits and shared risks.
Meanwhile, Deputy Minister of Industry and Trade Nguyen Hoang Long affirmed that the signing of the PSC leverages existing infrastructure and experienced personnel, allowing for efficient resource extraction. This initiative will contribute to the Government's double-digit growth targets from 2025 onward while strengthening economic cooperation – an important pillar in the comprehensive strategic partnership between Vietnam and Japan.
Additionally, maintaining operations in Block 15-2 and other petroleum activities on Vietnam's continental shelf helps affirm the country's sovereignty, sovereign rights, and jurisdiction in the East Sea, he added, expressing his hope that the contractor consortium will achieve further success in the coming years, including the discovery of commercial oil and gas flows at the Dong Son structure in Quarter 3 of 2025.
Japanese Ambassador to Vietnam Ito Naoki praised the cooperation between the two countries, emphasising that energy cooperation projects are crucial as Vietnam continues its economic growth and industrial development toward becoming a high-income country by 2045.
The Ambassador expressed confidence that reforms initiated by Party General Secretary To Lam to simplify administrative procedures and accelerate decision-making will improve the investment environment and promote business expansion by Japanese companies within the framework of the comprehensive strategic partnership for peace and prosperity in Asia and the world.
Based on Article 40 of the 2022 Law on Oil and Gas, the contractor consortium had proposed signing a new petroleum contract for Block 15-2. The contract aims to continue petroleum operations and enhance research and application of new technological solutions to maximise resource utilisation in accordance with Vietnam's needs. Under the new PSC framework, the JVPC will retain a 45% participating interest and continue as operator, while the PVEP holds the remaining stake./.
