Vietnam is a fast-growing nation in Southeast Asia with rapidly growing energy demand. But it also has significant offshore gas resources. The government has a questionable human rights record, but has gone to great lengths to court international oil and gas investment.
Let’s take a look at some of the opportunities there.
PetroVietnam signed a memorandum of understanding with Murphy Oil (NYSE: MUR) on July 8, 2015, in order to cooperate on the development of oil and gas projects in Vietnam. Murphy is looking at Vietnam for its long-term potential. It has expressed specific interest in the Block B project, located in the Malay-Tho Chu Basin off Vietnam’s southern coast (see map below).
Chevron (NYSE: CVX) found gas in Block B a decade ago. But PetroVietnam acquired control of Chevron’s subsidiary in Vietnam in June. This gave PetroVietnam control of two offshore production sharing contracts (PSCs), Block B and Block 52. Chevron had discovered gas in these sections years ago, which are located in the Malay Basin. PetroVietnam also acquired Chevron Southwest Vietnam Pipeline Co. Ltd., giving it a 28.7 percent stake in the pipelines that will deliver the natural gas from the offshore projects to power plants onshore.
“The Block B gas project is PetroVietnam’s main oil and gas project. The project is of major significance, contributing to ensuring the energy security of the country and promoting…