Phase 3 of the Dai Hung development project was assigned to the Vietnam Oil and Gas Exploration and Production Corporation (PVEP) as the investor by Petrovietnam, with the Vietsovpetro joint venture as the EPCI general contractor. The FDP was approved on June 23, 2022, and nearly 18 months have passed since the signing of the EPCI contract and the commencement of the project on November 23, 2022.
The successful launch of the Dai Hung 01 platform jacket and the achievement of 2.3 million safe hours on April 17, 2024, in preparation for the offshore construction campaign, marked and recognized the remarkable efforts of the project stakeholders in ensuring the progress, quality, and safety of the project, especially considering that it commenced after the prolonged COVID-19 pandemic, complex global economic conditions due to geopolitical fluctuations, and challenges in material/equipment supply and transportation.
The total investment for the Dai Hung field development phase 3 exceeds USD 400 million, with a total recoverable oil production of over 22 million barrels of oil and 21.4 billion cubic meters of gas, and a peak oil production rate of approximately 9,000 barrels per day. Once operational, it will significantly contribute to the state budget. The project sets the stage for further exploration and expansion throughout Block 05-1(a), neighboring blocks, and notably contributes to the protection of maritime sovereignty and security. As of April 20, 2024, the project progress has reached approximately 66.7%, exceeding the planned schedule by 0.6%.
Speaking at the ceremony, Le Manh Hung – Chairman of Petrovietnam’s Board of Directors, on behalf of the Petrovietnam leadership, acknowledged, applauded, and highly appreciated the determination and thanked PVEP, PVEP POC (Domestic Exploration Operation Branch), the Vietsovpetro general contractor, and other contractors for their tireless efforts, leading to the project’s impressive results to date, as well as the achievement of 2.3 million safe hours.
Chairman Le Manh Hung emphasized that this project is highly significant as the country is recovering from the pandemic, driving investment, and stimulating socio-economic development, with Petrovietnam being a key player and co-investor in the country’s progress. The Dai Hung Phase 3 project, once completed and operational, will play a pivotal role in mitigating the decline in domestic oil and gas production.
The Chairman of Petrovietnam expressed confidence that the investor and contractors would successfully execute the project and achieve first oil earlier than planned, contributing to the successful implementation of the 2024 management plan and the continued successful implementation of the Group’s ongoing projects. He also urged the project team to continue building on the progress achieved thus far to ensure the triumphant completion of the Dai Hung Phase 3 project.
On April 17, 2023, after more than 12 months of construction, the Dai Hung 01 jacket, weighing approximately 5,000 tons and located at a depth of over 112 meters, was successfully fabricated onshore and launched into the water by Vietsovpetro using the skidding method onto the Holmen Atlantic barge. Currently, the Dai Hung 01 jacket has been reinforced and secured on the Holmen Atlantic barge, ready for transportation and offshore installation on April 24, 2024, marking the start of the 2024 offshore installation campaign for the Dai Hung Phase 3 project.
The Dai Hung field is located in deep waters offshore Vietnam, in Block 05-1(a). It was first brought into production by foreign contractors in 1994. However, due to unforeseen challenges, production activities did not meet expectations.
In 2002, the foreign contractors decided to withdraw and sold all their invested equipment and facilities for a symbolic price of USD 1 to Petrovietnam. To continue operating the Dai Hung field, in 2003, the government transferred the operating rights to PVEP, a subsidiary of Petrovietnam.
Subsequently, the Block 05-1(a) oil contract was signed in 2009, with PVEP holding a 100% stake and the Dai Hung Petroleum Company, the predecessor of PVEP POC, as the operator. Overcoming numerous challenges, 30 years after its initial operation and 20 years after its transfer to Vietnam, the Dai Hung field has made remarkable progress, significantly contributing to the production and business results of PVEP, Petrovietnam, and the national economy, with a total production exceeding 70 million barrels of oil since 1994.
