PVEP HCM and Vietsovpetro Sign Landmark EPCIC Contract for Kinh Nguu Vang Field Development in Block 01-10-02-10
Ho Chi Minh City, Vietnam - On July 28, 2026, a significant milestone was achieved in Vietnam's oil and gas sector as the Ho Chi Minh City Branch of Vietnam Oil and Gas Exploration and Production Corporation (PVEP) and the Vietnam-Russia Joint Venture Vietsovpetro formally signed the Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) contract for the Kinh Nguu Vang (Golden Whale) field development project in Block 01-10-02-10, located offshore Vietnam's continental shelf. This ceremony marks the beginning of a new promising phase in the nation's effort to harness its valuable hydrocarbon resources.
Project Background and Strategic Importance
The Kinh Nguu Vang field development project situated in Block 01-10-02-10 offshore Vietnam's continental shelf represents one of the nation's most significant oil and gas initiatives for the 2026-2030 period. With substantial hydrocarbon reserves, the Kinh Nguu Vang field is poised to make a crucial contribution to Vietnam's energy security and economic development.
The recently signed EPCIC contract between PVEP HCM and Vietsovpetro encompasses the entire process from design, equipment procurement, construction, installation to commissioning of facilities required for oil and gas production at the Kinh Nguu Vang field. This comprehensive approach ensures that all aspects of the project development are professionally managed and executed to the highest standards.
Key Stakeholders Overview
PVEP Ho Chi Minh City Branch
The Ho Chi Minh City Branch of Vietnam Oil and Gas Exploration and Production Corporation (PVEP HCM) operates as a subsidiary of Vietnam Oil and Gas Group (PetroVietnam), the state-owned energy conglomerate. The branch is responsible for exploring and exploiting oil and gas resources in key areas of the country, contributing significantly to Vietnam's hydrocarbon production portfolio.
Vietsovpetro
Established in 1981, the Vietnam-Russia Joint Venture Vietsovpetro stands as the first and largest oil and gas joint venture in Vietnam. The company has made substantial contributions to the development of Vietnam's oil and gas industry, with remarkable successes in developing major oil fields such as Bach Ho (White Tiger), Rong (Dragon), and Su Tu Trang (White Lion). Vietsovpetro brings decades of technical expertise and operational excellence to this new venture.
EPCIC Contract Details
The EPCIC contract signed between the two parties has a total value of 1.2 billion USD with an expected implementation period of 48 months. Under this agreement, Vietsovpetro will serve as the main contractor, assuming full responsibility for executing the entire EPCIC package for the Kinh Nguu Vang field development project.
The scope of work includes:
- Design of oil and gas production systems
- Procurement and installation of high-tech equipment
- Construction of offshore subsea and surface facilities
- Installation of oil and gas pipeline systems
- Implementation of control and monitoring systems
- Commissioning of the entire production system
Implementation Timeline and Project Phases
The Kinh Nguu Vang field development project is structured into four main phases, each with specific objectives and deliverables:
| Phase | Timeline | Key Activities |
|---|---|---|
| Phase 1 | August 2026 - February 2027 | Technical design completion and finalization |
| Phase 2 | March 2027 - August 2027 | Equipment and materials procurement |
| Phase 3 | September 2027 - June 2029 | Construction, installation, and implementation |
| Phase 4 | July 2029 - August 2030 | Testing and commissioning operations |
Economic and Technological Potential
Upon completion, the Kinh Nguu Vang field is expected to yield approximately 50,000 barrels of crude oil per day. The total hydrocarbon production over the projected 20-year lifespan is anticipated to reach around 300 million barrels of oil equivalent.
Technologically, the project will incorporate state-of-the-art oil and gas extraction solutions, including:
- Smart field production systems
- Remote monitoring and control technologies
- Efficient oil and gas processing and transportation systems
- Advanced environmental protection technologies
Impact on Vietnam's Oil and Gas Industry
The Kinh Nguu Vang field development project is expected to generate multiple positive impacts:
- Enhancing national energy security
- Creating thousands of direct and indirect employment opportunities
- Attracting investment in the oil and gas support industry
- Strengthening Vietnam's technological capabilities and management expertise in the oil and gas sector
- Contributing significantly to state revenue through taxes and oil and gas royalties
Conclusion
The signing ceremony for the EPCIC contract of the Kinh Nguu Vang field development project in Block 01-10-02-10 represents a pivotal moment in Vietnam's oil and gas development strategy. With the collaboration between PVEP HCM and Vietsovpetro—two of the most experienced and capable entities in Vietnam's oil and gas sector—the project is positioned for success, promising substantial contributions to the nation's socio-economic development.
The application of modern oil and gas extraction technologies and professional management processes will optimize production efficiency while ensuring safety and environmental protection, aligning with Vietnam's sustainable development goals for the oil and gas industry.
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