Murphy finds oil pay offshore Vietnam

Murphy Cuu Long Tay Oil, a subsidiary of Houston-based oil and gas company Murphy Oil, has drilled an exploration well and struck oil in a block situated in the Cuu Long Basin offshore Vietnam.

According to the U.S. player, the Hai Su Vang-1X exploration well was drilled to a depth of 13,124 feet, or 4000 meters, in 149 feet (45 meters) of water in Block 15-2/17. This led to a discovery of approximately 370 feet, or around 112 meters, of net oil pay from two reservoirs.

“I am pleased with the success of the Hai Su Vang-1X exploration well. This discovery adds further upside to our current Vietnam business,” said Eric M. Hambly, Murphy Oil’s President and Chief Executive Officer. “We look forward to working with our partners as we continue evaluating the results.”

Since Hai Su Vang is one of the multiple exploration prospects identified by Murphy in the basin, the latest discovery could form the basis for future development of the Hai Su Vang field. Furthermore, Murphy says additional evaluation is ongoing, and future appraisal drilling will be conducted.

Murphy Cuu Long Tay Oil is the operator of the block with a 40% working interest. PetroVietnam holds a 35% working interest, and SK Earthon the remaining 25%.

The trio is also working together on the Lac Da Vang project in Block 15-1/05 in the same basin. In November 2024, the firm disclosed its plans to drill the Lac Da Hong-1X exploration well after Hai Su Vang-1X. In late 2023, Murphy hoped to achieve first oil at the project in 2026, with development phased through 2029.

At the end of 2024, a joint venture (JV) between PetroVietnam Technical Services Corporation (PTSC) and Yinson Production won the contract for the provision, charter, operation, and maintenance of a floating storage and offloading (FSO) vessel destined to work at Lac Da Vang.

As for the other part of the oil and gas pair, gas projects in Vietnam have encountered some setbacks as only the Nhon Trach 3 and 4 plants of the approximately 14 gas-fired power projects currently underway are expected to start operations in Q2 and Q3 of 2025.

The country’s Prime Minister thus instructed the Chairman and General Director of PetroVietnam to focus all resources to “urgently” organize the construction of the thermal power plant duo, so they can be completed and put into commercial operation in June 2025.