Vietnam accelerates major oil and gas projects to offset production decline

Vietnam is accelerating several major billion-dollar oil and gas projects to address declining domestic energy supplies. Key projects slated for the 2026-2030 period include Lo B - O Mon, Lac Da Vang, Su Tu Trang 2B, Khanh My - Dam Doi, and Ca Voi Xanh.

Data from Petrovietnam indicates a significant decline in production, with crude oil output dropping approximately 48% from 18.7 million tons in 2015 to 9.64 million tons projected for 2025. Dry gas production is also expected to decrease by nearly 49% over the same period. To counter this, the upstream market is forecasted to expand with a CAGR of 5.57% between 2026 and 2031.

While these projects aim to stabilize energy security and meet electricity demands, some face delays. The Ca Voi Xanh project is currently awaiting the resolution of commercial issues before reaching a Final Investment Decision (FID), potentially pushing its first gas production beyond 2030. Kafi Research suggests that companies like PVD are positioned to benefit from upcoming domestic drilling campaigns in 2026.