“A Project Once Abandoned by Foreign ‘Sharks’ and Sold to PVN for $1, Now Brings in Billions of Dollars Annually.”

On the evening of May 16, the National Oil and Gas Exploration and Exploitation Corporation (PVEP) held a ceremony to welcome the first oil flow from the Phase 3 development project of the Dai Hung oil field, Lot 05-1(a)

Phase 3 of the Dai Hung oil field development project was officially approved by the Prime Minister in June 2022. The project includes a wellhead platform, WHP-DH01, installed at a depth of over 110 meters, connected to the existing central processing platform, FPU, via a 5.2-km flexible pipeline.

The project was completed 20 days ahead of the adjusted schedule, with a production rate of 6,000 barrels/day.

Speaking at the ceremony, Mr. Le Duc Tue, Director of the PVEP POC branch, shared that in April 1993, the Lot 05-1(a) – Dai Hung oil field contract was first signed with a multinational contractor consortium, with BHP (Australia) as the operator.

From 1993 to 1999, the contractor consortium carried out oil development and exploitation work at the Dai Hung oil field. The project was then transferred between foreign operators, who subsequently withdrew due to inefficient exploitation.

By 2003, all foreign contractors had officially withdrawn from the project, leaving all equipment and facilities to Petrovietnam with a symbolic book value of 1 USD.

In October 2003, the Government officially handed over the direct management of the Dai Hung oil field to the National Oil and Gas Exploration and Exploitation Corporation (PVEP). This was the first time that an offshore oil and gas project was entirely managed and operated by 100% Vietnamese.

Since then, the Dai Hung oil field has successfully developed Phase 1 in 2011 and completed the gas collection project in 2015.

The average annual exploitation output of the Dai Hung oil field is about 2.6-2.8 million barrels of oil. Up to now, the whole field has exploited nearly 75 million barrels of oil.

By the end of 2024, the total revenue of the Dai Hung project had reached 4.2 billion USD, contributing about 600 million USD to the state budget.

With the exploitation of wells in Phase 3, the total exploitation output of the field is expected to reach about 18,000 barrels/day by the end of 2025, contributing an additional 2.5 billion USD in revenue and 450 million USD to the state budget…

It is expected that the total revenue of the whole field after the exploitation of Phase 3 will reach about VND 160,000 billion by 2034, contributing an additional 76 million barrels of oil to Petrovietnam’s total output.

The National Oil and Gas Exploration and Exploitation Corporation (PVEP) is a 100% subsidiary of the Vietnam National Oil and Gas Group (Petrovietnam). PVEP is the leading unit of Petrovietnam in the field of oil and gas exploration, exploitation, and development, with experience in implementing 29 domestic projects/contracts and 5 overseas projects.

The Domestic Oil and Gas Operation Branch (PVEP-POC) is a subsidiary and representative of PVEP, operating domestic oil and gas exploration and exploitation activities in the form of self-operation. PVEP-POC is currently operating the Dai Hung oil field project, Lot 05-1(a)