Vietnam National Oil and Gas Group (Petrovietnam) and its partners have officially signed a product sharing contract (PSC) for Block 15-1, located on Vietnam’s southern continental shelf.

According to Petrovietnam, Block 15-1 holds significant strategic value for its upstream arm, the PetroVietnam Exploration Production (PVEP).

Originally operating as a joint venture, the block included five international and domestic collaborators, including PVEP, ConocoPhillips Cuu Long (UK), KNOC and SK (Korea), and Geopetrol (Monaco). Perenco (France-UK) later replaced ConocoPhillips in the venture.

The Cuu Long Joint Operating Company manages this joint venture within Vietnam’s oil industry.

In the new PSC arrangement, PVEP controls 59% of the venture, with Perenco holding 19.8%, KNOC 11.4%, SK 7.2%, and Geopetrol 2.6%. A notable change from previous agreements is a 9% increase in PVEP’s share.

The signing ceremony for the PSC marked the commencement of Phase 2B of the White Lion Project, involving an investment of $1.3bn.

Upon completion, the project will supply 125 billion standard cubic feet of natural gas daily to the domestic market.

Vietnamese Deputy Prime Minister Bui Thanh Son said: “In the coming time, the demand for energy for development is very large, clearly shown in the recent Adjustment of the 13th Power Plan.

“The early and highly effective implementation of key energy projects, oil and gas projects, and important oil and gas contracts, such as PSC Block 15-1 today, plays a very important role in contributing to achieving the goals of developing the national oil and gas industry, ensuring energy security and socio-economic development of the country.”

Since its initial development, Block 15-1 is said to have consistently delivered substantial production outputs and high economic returns, serving as a key part of national oil production.

The first oil extraction occurred in 2003 from the Black Lion field, propelling it to prominence in Vietnam’s offshore production, with reserves estimated at about 600 million barrels.

Located in Vietnam’s Cuu Long basin, Block 15-1 includes fields such as Black Lion, Golden Lion, Brown Lion, and White Lion. It is one of Vietnam’s earliest exploited blocks with significant reserves.

Petrovietnam said that the block’s dual role in providing crude oil to Dung Quat Refinery and offering natural gas for regional industries establishes it as a strategic pillar in Vietnam’s national energy system.