Huge oil reserves found in Vietnamese waters

A huge oil reserve has been found in Vietnamese waters.

The Hai Su Vang (HSV) appraisal well in Vietnam’s Cu Long Basin has found a huge oil reserve. US-based Murphy Oil said the well contains at least 430 million barrels of oil.

According to the Journal of Petroleum Technology, it is the largest oil discovery in the ASEAN region (Association of Southeast Asian Nations) in nearly two decades. The well, drilled about 40 miles off the Vietnamese capital, Ho Chi Minh City, has identified a total of 429 feet of net oil pay in two reservoirs. The well has been producing 6,000 barrels of ‘sweet’ crude oil per day in test production.

Murphy Oil said on Tuesday (January 6) that two of its appraisal wells in the Cu Long Basin’s Block 15-2/17 have identified 429 feet of net well pay.

Murphy Oil President and CEO Eric Hambly said in a press release that the discovery of the new oil field is a “turning point” for his company’s operations in Vietnam.

Vietnam’s first oil production began in 1986 as a Soviet-Vietnamese joint venture. This marked the beginning of the country’s oil and gas industry, with facilities such as the BK-24 platform playing a key role.

However, Vietnam’s oil production has declined in the context of industrialization and refinery expansion. In 2005, the country was producing 365,000 barrels of oil per day, but last year it fell below 120,000 barrels. The once oil-exporting country has been dependent on imports since 2017.

However, with this new well and two more wells to be added this year, the country is dreaming of becoming self-sufficient in oil resources again. HSV is working on the ‘Appraisal Well’ drilling project in partnership with PetroVietnam (35 percent) and SK Earthen (25 percent).

Gulf News reports.