On the vast horizon of the South China Sea, where the waters of Southeast Asia are intertwined with a rich historical and cultural legacy, a discovery has been unveiled that promises to transform Vietnam’s energy landscape. Murphy Oil, a leading Houston-based exploration and production company, has announced the discovery of an oil field in the Cuu Long Basin off the Vietnamese coast. According to the company, the Hai Su Vang-1X well, located in Block 15-2/17, has revealed about 370 feet of distributed net oil in two reservoirs, a discovery that could translate into 400 million barrels of crude oil “even more”, according to what the company says. This finding is key, since Vietnam is a country thirsty for crude oil, since it needs to import large quantities of ‘black gold’ every day to satisfy its domestic demand.
Eric M. Hambly, president and CEO of Murphy Oil, described this discovery as “an opportunity to significantly expand our operations in Vietnam”. This advance is not only a victory for the company, which owns a 40% stake in the block, but also for PetroVietnam, the Vietnamese state company that controls 35%, and SK Innovation, of the South Korean group SK, which holds the 25% remaining. This finding is key for a country like Vietnam that has to import about 450,000 barrels of oil every day, which represents an obstacle to its current account balance and its economy. For now, the country has overcome this lack of crude oil very well. Vietnam is one of the most promising economies in the world. However, this oil discovery could be the icing on the cake: a very fast-growing economy that does not depend on foreign crude oil, at least for a while.
Vietnam, a country with a population of more than 97 million, has historically been a modest player in oil production. According to the latest available data, it produces less than 160,000 barrels per day, a small amount compared to the region’s energy giants. However, its rapid economic growth—Vietnam has been one of the fastest expanding countries in Asia in the last decade— is driving growing demand for energy.
The discovered oil can not only mean a boost for the country’s energy self-sufficiency, but also an engine for its industrial development. This finding comes at a crucial time as Vietnam seeks to balance its economic growth with the energy needs of its population, which continues to increase alongside its urbanization and industrialization.
A promising oil basin
The Cuu Long Basin, where the deposit is located, had already shown its potential in previous explorations. Murphy Oil, which began an exploration program for two wells in the region in 2024, plans to continue with the Lac Da Hong-1X well in Block 15-1/05, in the same geological environment. This block has already produced significant finds, such as the LDT-1X well in 2019, which revealed 320 feet of net oil at its primary target. It is estimated that there may be up to 400 million barrels of crude oil, but the firm has assured that “there may be even more”, also less.
The potential impact of Hai Su Vang oil is not limited to Vietnamese borders. This discovery could position Vietnam as a relevant player in the supply of oil in Southeast Asia, a region that has historically imported more energy than it produces. The ability to attract foreign investment in the energy sector, along with strengthening PetroVietnam as a competitive entity, are opportunities that this field can unlock.
However, The path to full exploitation of the deposit is full of challenges. Deepwater drilling requires advanced technology and significant capital (foreign investment, above all, that has the necessary knowledge and technology). Furthermore, geopolitical factors in the South China Sea, where territorial disputes are frequent, add a layer of uncertainty to the development of projects in this region.
This discovery also comes at a time when Vietnam seeks to diversify its energy matrix. While oil remains a strategic resource, the country is also investing in renewable sources such as solar and wind, in line with its international climate commitments. The coexistence of these efforts could redefine Vietnam’s role on the global energy map.
In Hambly’s words, “the findings in the Cuu Long Basin are a foundation for the future development of the Hai Su Vang field.” With its sights set on continued exploration and possible expansion of its infrastructure, Vietnam could be on the threshold of an unprecedented economic and energy transformation, fueled by the treasure hidden in its seas.
The future of this discovery, like the sea waters that surround it, is loaded with possibilities. For Vietnam, the challenge will be to take advantage of this discovery to build a path of prosperity and sustainabilityensuring that the oil found not only benefits large corporations, but also the millions of Vietnamese who see economic growth as an opportunity to improve their lives.
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