Two Major Benchmarks in Vietnam’s Oil & Gas Sector

Vietnam’s oil and gas sector is breaking new ground, driven by landmark developments in both upstream exploration and downstream infrastructure. On the oil side, Murphy Vietnam Offshore, LLC, a subsidiary of Murphy Oil Corporation, recently drilled the Hai Su Vang-2X appraisal well in the Cuu Long Basin, revealing 131 meters of net oil pay across two reservoirs, well above initial estimates. The primary reservoir tested at 6,000 barrels per day of high-quality crude, positioning Hai Su Vang as potentially the largest offshore discovery in Southeast Asia in the past 20 years. With recoverable resources estimated at over 430 million barrels of oil equivalent (MMBOE), this discovery provides Vietnam with a significant opportunity to revitalize upstream production, reverse a two-decade decline in domestic output, and reduce reliance on imports, which totaled 14.15 million metric tons in 2025. This breakthrough also creates substantial opportunities for foreign developers and private-sector actors across upstream exploration, production, and associated downstream processing and export operations.

Complementing the surge in upstream activity, Vietnam’s downstream gas sector is undergoing a transformative shift. State-owned PetroVietnam Gas (PV Gas) has signed its first-ever multi-year LNG supply contract, marking a historic move from short-term, spot-market purchases to a long-term strategic framework. The five-year agreement with Shell, covering 2027–2031, will deliver approximately 400,000 metric tons of LNG to the Thi Vai import terminal, ensuring reliable supply for nearby gas-fired power plants. As LNG imports reached around 500 million cubic meters in 2025, this pioneering long-term contract strengthens fuel security, supports financing for power infrastructure projects, and enhances Vietnam’s positioning in regional LNG trading markets, where long-term supply agreements are increasingly critical.

Taken together, these upstream and downstream developments signal a broader modernization of Vietnam’s energy sector. The Hai Su Vang discovery opens high-value opportunities in upstream exploration and production, while PV Gas’s long-term LNG deal creates new avenues in downstream energy trading, infrastructure development, and power generation projects. Collectively, these milestones reinforce Vietnam’s domestic energy security, attract international investment, and elevate the country’s profile in Southeast Asia’s energy markets, demonstrating a strategic integration of resource growth with infrastructure expansion in response to rising regional demand for reliable, diversified energy sources.