Vietnam Oil and Gas Upstream Market Report and Forecast 2025-2034

Vietnam Oil and Gas Upstream Market Size

The Vietnam oil and gas upstream market is projected to grow at a CAGR of 4.2% between 2025 and 2034.

Vietnam Oil and Gas Upstream Market Outlook

• In March 2024, the Vietnam Block B project—an integrated development project including an upstream gas field and a pipeline connecting the gas field to a network of gas-fired thermal power plants—saw the investment of Mitsui Oil Exploration Co., Ltd. (MOECO) and its business partners.

• In November 2023, Petronas signed a Memorandum of Cooperation (MoC) with Vietnam Oil and Gas Group (PetroVietnam) to explore potential collaboration opportunities in the upstream, downstream, renewable energy, and gas sectors in Vietnam.

• In August 2023, ‘Harbour Energy’ entered into Sale and Purchase Agreements to sell its business in Vietnam to Big Energy Joint Stock Company and took exit from the country with USD 84 million sale of offshore assets.

Vietnam Oil and Gas Upstream Market Growth

The key drivers of the market are the rising crude oil prices, support from the government as well as increasing energy demand in the country. As of February 15, 2024, the price of gasoline in Vietnam has increased by approximately 650-710 Vietnamese Dongs per litre. This positively influences the oil and gas upstream market because of the increasing demand for an alternate source of energy. Rising industry, urbanization, and improving living conditions are driving up energy consumption in Vietnam as the country's economy continues to grow. Vietnam has concentrated on boosting its domestic oil and gas output in order to meet this growing demand.

The oil and gas upstream demand growth is also receiving a considerable amount of support from the government. The government is introducing initiatives and schemes to help utilise the country’s own resources in order to have zero dependence on external imports. The 2022 Law on Oil and Gas is an example of the same which aims to simplify the legal framework and aid in the sector’s development. Furthermore, its objective is to help and facilitate the investigation and extraction of oil that is available within Vietnam’s boundaries, whether it is in the mainland, on the islands or in the sea.

The country aims to produce enough energy to fulfil the requirements of an economy growing at a rate of 6.5%-7.5% per annum. Vietnam’s Prime Minister launched the National Power Development Plan (NPDP) on May 15, 2023, with the objective to ensure sufficient power supply for domestic demands and achieve self-sufficiency in electricity generation. Oil and natural gas upstream market thus has a greater role to play in fulfilling the country’s power requirements, increasing the Vietnam oil and gas upstream market revenue.

Key Trends and Recent Developments

New oil field discoveries, volatile oil and gas prices, and increased investment in exploration and production activities are impacting the Vietnam oil and gas upstream market value.

March 2024

Japan’s Mitsui and Company has announced its final investment decision to develop Vietnam's Block B upstream gas field, with an investment of around USD 740 million. The project, 330 km off southwest Vietnam, will comprise a gas field and a gas pipeline linking it to an adjacent gas fired thermal power plant. The production capacity from the field is expected to be 490 million cubic feet per day.

November 2023

Petrovietnam announced its collaboration with Malaysian Company Petronas on upstream oil and gas production projects. The two have signed a Memorandum of Cooperation (MOC) to this effect. The collaboration aims at achieving sustainable economic growth by increasing energy supply with reduced carbon emissions.

August 2023

Harbour Energy, a key contributor to Vietnam’s oil and gas industry is selling its business to Big Energy Joint Stock Company for a total value of USD 84 million. The major asset of the transaction includes its 53.125% interest in Chim Sao and Dua oil producing offshore fields. Big Energy, which has been active in upstream activities offshore Vietnam for over a decade and is planning to use the purchased oilfields for the same purpose.

June 2021

Spain-based Repsol, a major market player in Vietnam’s oil and gas industry sold its upstream assets to Malaysian company Hibiscus Petroleum. The transaction represents 2% of Repsol’s current net global output. The move will help Hibiscus Petroleum enter into Vietnam’s oil and gas upstream market with a strong asset portfolio.

New Oil Field Discoveries in Vietnam Driving Market Growth

In May 2024, PetroVietnam announced the discovery of two new oil reserves with combined reservoir of crude oil worth 100.5 billion barrels. These discoveries are expected to positively impact Vietnam oil and gas upstream market growth. The reserves have been discovered in Southeast and Southern Vietnam respectively, and one of them is being operated by Vietsovpetro, a Vietnam-Russia joint venture.

Increased Oil Prices and Limited Supplies Enhance Vietnam Oil and Gas Upstream Industry Revenue

Increased prices of crude oil and natural gas globally, in addition to supply cuts, has raised demand for upstream rig trentals in Vietnam’s oil and gas upstream market, boosting their profits to new levels. For instance, PV Drilling, a leading rig rental service in Vietnam recorded a positive business growth in the second quarter of 2023, during which it reported a net profit of VND 155 billion. This was far beyond the yearly profit target of the company.

Revised Law on Petroleum Allows Foreign Businesses to Participate in Oil and Gas Upstream Extraction

The Vietnam government revised its law on petroleum in 2022 to reduce oil and gas imports and ramp up domestic production in the lieu of rising volatility in oil and gas prices globally. One of the key aspects of the revised law allows foreign firms to sign a contract with the Petrovietnam in order to participate in oil and gas upstream exploration and extraction. Such contracts, signed under the Comprehensive and Progressive Agreement for Tran-Pacific Partnership, will boost foreign investment leading to growth of the Vietnam oil and gas upstream market.

Growth in Exploration Activities to Bring New Vietnam Oil and Gas Upstream Market Opportunities

The global rise in exploration and production activities have increased market opportunities in the industry. As a result, the industry is witnessing huge investments from public as well as private sector. For instance, PetroVietnam is planning to invest around VND 25.7 trillion by the end of 2024 in the industry. PetroVietnam Exploration Production Cooperation (PVEP), one of PetroVietnam’s subsidiary, is leading this investment plan with over VND 20.6 trillion investment in key oil and gas projects. Similarly, leading private player, PV Drilling is planning to invest more than VNĐ2.6 trillion in 2024.

Vietnam Oil and Gas Upstream Industry Segmentation

‘Vietnam Oil and Gas Upstream Market Report and Forecast 2025-2034’ offers a detailed analysis of the market based on the following segments:

Market Breakup by Location of Deployment

• Onshore

• Offshore

Market Breakup by Product

• Crude Oil

• Natural Gas

• Others

Market Breakup by Region

• Southeast

• Red River Delta

• Mekong River Delta

• South Central Coast

• Others

Vietnam Oil and Gas Upstream Market Share

Offshore segment dominates the Vietnamese oil and gas upstream market. The country has substantial offshore gas and oil reserves in the South China Sea, especially in basins like Nam Con Son and Cuu Long. New reserves have been found as a result of ongoing exploration work, drawing capital and propelling the upstream sector's expansion. Vietnam has been emphasizing the development of its infrastructure to assist with activities upstream. Pipelines, onshore processing facilities, drilling rigs, and offshore production platforms have all been built with financial assistance. Vietnam's capacities for oil and gas exploration, production, and export are strengthened by these infrastructure improvements.

Leading Companies in the Vietnam Oil and Gas Upstream Market

The market players are actively opting for ways to utilize natural gas for power generation as it is more eco-friendly than other fuels.

• Exxon Mobil Corp.

• Eni S.p.A

• Eneos Holdings Inc.

• Saipem S.p.A 

• Japan Drilling Co., Ltd.

• Jadestone Energy Plc

• Essar Oil and Gas Exploration and Production Limited

• Vietnam Oil and Gas Group (PetroVietnam)

• Others

Key Highlights of the Report

Vietnam Oil and Gas Upstream Market Report Snapshots

Vietnam Oil and Gas Upstream Market Size

Vietnam Oil and Gas Upstream Market Growth

Vietnam Oil and Gas Upstream Market Share

Vietnam Oil and Gas Upstream Companies