PVOIL Signs Crude Oil Sales Agreements for Blocks 01&02 and 01/97&02/97

19.10.2025

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On October 17, 2025, PetroVietnam Oil Corporation (PVOIL) hosted the Signing Ceremony of Crude Oil Sales Agreements for Blocks 01&02 and 01/97&02/97 between the Management Boards of the two projects and PVOIL.

Attending the ceremony from the Vietnam National Industry – Energy Group (Petrovietnam) – the oil owner of both projects – were Mr Le Manh Hung – Member of the Party Executive Committee of the Government, Secretary of the Party Committee, Chairman of the Members’ Council of the Group; Mr Bui Minh Tien – Member of the Members’ Council; Mr Tran Binh Minh – Member of the Members’ Council; Mr Le Manh Cuong – Vice President; and representatives of the Group’s professional divisions.

From the project management boards were Mr Nguyen Duc Chinh – Director of the Management Board of Block 01&02 Project, and Mr Vu Viet Hung – Director of the Management Board of Block 01/97&02/97 Project.

From PVOIL were Mr Cao Hoai Duong – Member of the Party Executive Committee of the Group, Secretary of the Party Committee, Chairman of the Board of Directors of PVOIL; Mr Nguyen Dang Trinh – Vice Secretary of the Party Committee, President & CEO; along with Members of the Board of Directors, Executive Board, and heads of professional departments.

Block 01&02, located in the Cuu Long Basin offshore Vietnam’s continental shelf, is approximately 155 km southeast of Vung Tau. Block 01/97&02/97 lies in the northeastern Cuu Long Basin, about 160 km east of Vung Tau.

In 1991, PVEP and Petronas Carigali signed the Production Sharing Contract (PSC) for Block 01&02. In 2003, PVEP and PC Vietnam Limited signed the PSC for Block 01/97&02/97.

In September 2017, the PSC for Block 01&02 expired. At the same time, the foreign contractor withdrew from the PSC of Block 01/97&02/97. Consequently, Petrovietnam signed a temporary contract with PVEP to operate both Blocks from September 2017 through the end of 2023.

According to a resolution by the Members’ Council of Petrovietnam approving the change in project governance, Petrovietnam has directly managed the operations of both blocks since January 1, 2024.

Over the course of their development, both projects have faced many challenges. However, thanks to the close guidance from the Group’s leadership, support from professional departments, and the exceptional efforts of an entirely Vietnamese workforce, the projects have consistently met annual work programs and budget targets with impressive results.

These achievements are not only economically significant in ensuring national energy security but also demonstrate the Group’s capability to master technology and successfully manage complex projects, including those involving small or marginal oil fields.

As of September 2025, after 34 years of production, Block 01&02 has completed 401 crude liftings, totaling 18.6 million tons worth USD 8.7 billion. Block 01/97&02/97, after 22 years of production, has completed 94 crude liftings, totaling 2.9 million tons worth USD 1.4 billion. These results affirm Petrovietnam’s competence in upstream management and its substantial contributions to the state budget. Throughout this process, PVOIL, as the crude oil sales agent, has proudly contributed to these successes.

With strong support and guidance from Petrovietnam, the main terms of the new Crude Oil Sales Agreements have now been approved by the Group. These outcomes are the result of proactive negotiations among the parties, grounded in long-term cooperation and mutual development.

At the ceremony, representatives of the Management Boards for both projects and PVOIL officially signed the agreements in the presence of the Group’s senior leadership.

Speaking at the event, Mr Nguyen Duc Chinh shared that PVOIL had effectively cooperated with the Project’s Management Board in marketing and selling Ruby crude from Block 01&02 in over 400 shipments, maintaining quality and professionalism even in periods of market downturns and low oil prices. He expressed confidence in PVOIL’s technical capacity and market knowledge to continue excelling in this role.

Mr Vu Viet Hung praised PVOIL’s professionalism and proactive collaboration, including its real-time market insights, crude oil price forecasts, and timely advisory support throughout the sales process for Thang Long crude. He especially appreciated PVOIL’s close coordination in finalizing the sales agreement.

Mr Nguyen Dang Trinh – President & CEO of PVOIL – affirmed that the Corporation had always conducted its role as a crude oil sales agent with utmost professionalism, from tendering and negotiation to contract execution and lifting operations, maximizing safety, efficiency, and stakeholder value. Amidst geopolitical and oil market volatility, PVOIL remains flexible, timely, and supportive to ensure continuous, safe, and effective project operations. He reiterated PVOIL’s commitment to delivering high-quality services and prioritizing Petrovietnam’s strategic interests.

On behalf of Petrovietnam’s leadership, Mr Le Manh Cuong highly appreciated the swift cooperation among the parties in finalizing the sales agreements and praised PVOIL’s expanded role beyond distribution to enhancing upstream value creation. He also revealed Petrovietnam’s plan to transfer the operatorship of both projects to new contractor consortiums led by Vietsovpetro and PVEP, aiming to further develop reserves, boost output, and improve project efficiency.

The successful signing ceremony reaffirmed the trust, partnership, and shared development vision among all involved parties.

Mr Le Manh Cuong – Vice President of Petrovietnam – delivered remarks and guidance at the Signing Ceremony of the Crude Oil Sales Agreements.

Mr Nguyen Duc Chinh – Director of the Management Board of Block 01&02 Project – delivered remarks at the Signing Ceremony of the Crude Oil Sales Agreements.

Mr Vu Viet Hung – Director of the Management Board of Block 01/97&02/97 Project – delivered remarks at the Signing Ceremony of the Crude Oil Sales Agreements.