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Vietnam Oil & Gas Sector 20 September2010

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Vietnam Oil & Gas Sector 20 September2010

  1. 1. Oil & Gas Sector Vietnam Chapter Pham Quynh Mai, Market Advisor (Oil & Gas) mapha@innovationnorway.no September 2010Vietnam Country Data • Size: 329,560 sq km • Economic zone: 1,000,000 sq. km • Coastline: 3,260 km (ex. the islands) • Population: 86.2 million (2009e) (60 -65% born after 1975) • Capital: Hanoi • Oil Capital: Vung Tau • Member of ASEAN, AFTA, ASEM, APEC and WTO • Trade cooperation with 180 countries • Trade agreements with 80 countries • Key exported earners: Textile, Footware, Crude Oil , Seafood Photo credits • Stable political conditions
  2. 2. Vietnam Oil & Gas Industry … an overviewVietnam Oil and Gas Potentials Vietnam- 3rd largest oil producer in SEA • 8 identified sedimentary basins • Potential oil resources: 8.5 bn bbls • Potential gas resources: 100 TCF • Proven Oil reserves (2009): 4.5 bbls • Proven Gas reserves (2009): 24.1 TCF • PetroVietnam: dominant oil & gas producerPhoto credits Source: PetroVietnam
  3. 3. Annual Oil & Gas Production Source: PetroVietnamStrategic Development Targets Annual Production 2011 - 2015 2016 - 2020 (mm toe) Domestic 27 - 39 30 - 33 International 3-7 10 -15 Total 30 - 46 40 - 48 New reserves 2011 - 2015 2016 - 2020 Total (mm toe) Domestic 120 – 150 270 -320 390 - 470 International 40 - 45 110 - 120 150 - 165 Total 160 - 195 380 - 440 540 - 635 Investments $4.5 bn p.a in E&P (*) Source: PetroVietnam; (*): BMI Q110
  4. 4. Oil & Gas Production Forecasts Source: PetroVietnam Upstream Sector
  5. 5. Regional Upstream Business Environment Rating Source: BMI Q110Vietnam Domestic E&P map 102o E 104o E 106o E 108o E 110o E 112o E 114o E 116o E CHINA22o N 22o N hµ néi H¶i phßng MVHN MVHN-03KT 100-101/04 MVHN-02KT 106/07 2 N-0 MVHN-01KT § . B¹ ch long vÜ VH 102 10620o N 20o N M 103 107/04 Thanh hãa 108/04 Hainan is. 104-109/05 (China) VBB2005 Vinh 105-110/0418o N 111/04 18o N 112 113 LA § . Cån cá OS 114 115 HuÕ sa 116 117 141 Q. § .§Hoµngsa § . Ling c«n . Hoµng16o N § µ n½ng 16o N THAILAND 118 142 § . Lý 119 s¬n 143 120 144 121 14514o N 122 146 14o N Qui nh¬n 123 147 CAMBODIA 124 148 125 149 Cuu Long Basin êng sa Q. § . Tr- Nam Con Son Basin Song Hong Basin12o N Nha trang 12o N 126 150 01 (HN) PCOSB V-T-P 2005 04-3 VSP 100-101/04 Santos 01/97 & 02/97 Lam son JOC 05-1 (DH) PVEP 102, 106 PCL (V) 127 151 Phan thiÕt 103, 107/04 Bach dang Tp. Hå ChÝMinh 09-1 VSP 05-1b& 05-1c I demitsu 01/97 § . Phó quÝ 128 152 104, 109/05 Premier Oil § BSCL-02 01-HN 09-2 Hoan vu JOC 05-2, 05-3, 06-1 BP 111/04, 112, 113 VietGazProm 15-1-ST 129 153 § . Phó quèc § BSCL-03 Vòng 15-1/05 15-2-RD02/97 tµu15-2/01 09-3 VRJ JOC 06/94 Pearl Energy MVHN-02 Quad Energy10o N R¹ ch gi¸ CÇ th¬ n 09-2/03 16-1/03 16-1 15-1 (ST) Cuu long JOC 10o N 07/03 Premier Oil § . Thæchu 41 § BSCL-01 16-2 09-1 09-2 09-3 03 130 154 M alay-Tho Chu Basin 42 25 17 131 155 15-1/05 Phu quy JOC 10 & 11-1 Con son JOC 47/01 § BSCL-04 09-3/05 PM 3 CAA Talisman Cµ mau 31 04-2 04-1 15-2 (RD) JVPC 11-2-1 KNOC B/05 48/05 43 18 10 132 156 B/05, 52/97 Chevron Vietnam 26 05-1-DH 04-3 15-2/01 Thang long JOC 12 Premier Oil 46 (CN) Talisman Vietnam 52/97 50 44 37 32 C«n ®¶o 19 27 11-1 05-1/04 05-3/97 133 157 16-1 Hoang long JOC 28, 29/03 M itra Energy 46/02 Truong son JOC8o N 11-2 05-3-1 05-2 16-2 PVEP 8o N 133, 134-1 ConocoPhillips VT M 51 are 45 38 33 28 20 11-2/97 12/07 06-1 134-2 134-1 158 Phu Khanh Basin a 46/07 39 34 12 06/94 § BSCL-01 Salamander 46/02 21 135 159 122 Chevron Vietnam 46-CN PM 12/07 12/07 07/03 Bacbo Gulf-2005 Vietnam-Philippine 3C 40/02 35 124 Pogo Producing AA 29/03 22/03 13/03 136/03 160 -China 2005 127& 128 ONGC Videsh 36/03 Blocks awarded, but6o N PETROVIETNAM - March, 2008 6o N contracts not signed yet Source: PetroVietnam 102o E 104o E 106o E 108o E 110o E 112o E 114o E 116o E
  6. 6. E&P Activities Yet-found Discovered Potentials MAJOR PRODUCTIONS: MAJOR PRODUCTIONS: • OIL FROM CUULONG BASIN • OIL FROM CUULONG BASIN • GAS FROM NAM CON SON BASIN • GAS FROM NAM CON SON BASIN Source: PetroVietnam OFFSHORE, WATER DEPTH: 30M – 150M OFFSHORE, WATER DEPTH: 30M – 150MSeismic Activities • 400.000 km 2D • 60.000 km2 3D • > 990 wells • >2.3 mill meters drilling depth Current Status of seismic surveys (Apr 2010) Newly acquired multi-client seismic surveys BY 2015, PTSC TARGETS: BY 2015, PTSC TARGETS: • OWN 10 ROVs • OWN 10 ROVs • 3-5 2D/3D SEISMIC ACQUISITION VESSELS • 3-5 2D/3D SEISMIC ACQUISITION VESSELS • DOMINATES 90% OF DOMESTIC MARKET • DOMINATES 90% OF DOMESTIC MARKET Source: PetroVietnam
  7. 7. Open Opportunities Source: PetroVietnam Updated Dec 2009Drilling Achievements • Longest Well (HVJOC): 6,555mMD @4,609mTVD • Deepest Well (VSP): 5,050mMD @5,009m TVDss (VSP) • Longest Displacement (CLJOC): 4,842.8m (6,350mMD @3,057mTVD) • Longest Basement Interval (CLJOC): 2,715m • Deepest Water Depth (BG): 821m. Source: VPI
  8. 8. Drilling Technologies Being Used • Geo – Steering • MWD/LWD, MWD/GYRO • Extended Reach Drilling • Light Cement Slurries • Bit Optimization • New Mud Systems • Splitter Wellhead • Casing Drilling • Mud Cap Drilling • Managed Pressure Drilling • Slim Hole Drilling • Expandable Casing • Rotary Steerable System Source: VPIFuture Drilling Activities • Vietnam market requires 10- 11 jack-up rigs p.a • 900 wells to be explored by 2025, whereas 50 wells to be explored between 2011- 2015 each year in average • PVD, VN-Index listed company with 50.38% Source: ODS Petro Data & PVD ownerhip by PetroVietnam, accounts 30% drilling market share with 3 jack up rigs PVD EXPECT TO INCREASE ITS MARKET PVD EXPECT TO INCREASE ITS MARKET SHARE TO 50% BY INVESTING 5-7 RIGS IN SHARE TO 50% BY INVESTING 5-7 RIGS IN NEXT 3 YEARS NEXT 3 YEARS
  9. 9. PVD Investments Investment schedule Source: PVDUpstream Challenges • Major oil fields, like Bach Ho, have reached to their maturity and lower production has experienced • High pressure high temperature drilling in the main Nam Con Son basin • Unrecovered petroleum resources are spreading mainly in high water depth zones and far from logistic bases • New recoveries: Marginal fields, gas with high CO2 content, especially in the north basins (70-90%) • Oil and Gas production in complex reservoir structures (75% in the fractured granite basement reservoirs) • Lack of experiences in deepwater E&P. Financial constrains • Territories conflicts in some potential oil areas
  10. 10. Midstream SectorGas Transportation System Southeast-Southwest PL: •Capacity: 2 bcmpa Bach Ho –Phu My PL: CAMBODIA•Oeration in ~ 2014 •Capacity: 2 bcmpa •Length: 117 km •Diameter: 16”Block B – O Mon PL: Hiep•Operation in 2014 Phuoc Phu My Complex•Capacity: 7 bcmy Dinh Co GPP Nam Con Son 2 PL:•Length: 400 km•Diameter: 28-30” •Capacity: 7 bcmpa O Mon •Length: 330 km Cuu Long •Operation in ~ 2013 Ca Mau Basin Complex Nam Con Son PL: PM3-Ca Mau PL: •Capacity: 7 bcmpa Ma Lay Tho Chu Basin •Capacity: 2 bcmpa •Length: 400 km •Length: 330 km •Diameter: 26” Nam Con Son Vietnam – •Diameter: 18” Basin Malaysia CAA Source: PVGas
  11. 11. Gas Transportation System No activities within LNG to date, but new investments are coming upPossible Gas Structure in Vietnam • Import LNG by 2012 and PNG by 2018 for domestic market • Get accessed to new markets in South East Asia after 2018 (by PVGas)
  12. 12. Other Investment Plans • Build a mini LNG terminal to supply fuel to a Power plan project in Phu Quoc Island (<200MW) in 2 phases: • Phase 1: upto 2015 with capacity 150,000 tpa LNG • Phase 2: after 2015 increase to 300,000 tpa LNG • Build/acquire 2 LNG re-gasification terminals in South East of Vietnam: • Lease 1st floating LNG FSRU (0.5-1 mmtpa): 2012 • Build 1st land-based LNG re-gasification terminal: • Phase 1: 1 mmtpa in operation in 2015 • Phase 2: 3 mmtpa in operation in 2020 • Phase 3: 6 mmtpa in operation in 2025 • Implement Marginal Gas Gathering Projects in Cuu Long, Nam Con Son, Malay-Tho Chu and Song Hong Basins • Thi Vai refregirated LPG terminal (60 ktns): 2009-2012 Downstream Sector
  13. 13. Current Supplies of Petroleum Products Source: PVProCurrent Supplies of Petrochemicals Source: PVPro
  14. 14. PetroVietnam Projects 1. Dzung Quat refinery($3.1 bn, 6.5 mntpa): Feb09 2. Nghi Son refinery($8 bn, 8.4 mntpa): 2010– 2013 3. Long Son refinery($8 bn, 10 mntpa): 2010– 2015 4. South Vietnam Petrochemical complex ($3.8bn): 2014 5. Ca Mau fertilizer plan ($900mn): 2008 - 2012 6. Others: Polypropylene Project, Polyester Stable Fiber Project, etc. Source: PVProOther projects • Petrolimex refinery ($4.4-4.5 bn,10 mntpa): 2014 • Vung Ro Refinery ($1.7 bn, 8 mntpa) • Can Tho Refinery ($538 mn, 2mntpa): 2012
  15. 15. Opportunities & Ways to materializeOpportunities to Norwegian Co. • Increased Oil Recovery • Deep water drilling, and sub sea technology • LNG whole value chain • Distribution and utilisation of gas ashore, both for industrial and consumer usage • Establishment of local production of supporting devicesPhoto credits: Unknown
  16. 16. Ways to materialize opportunities 31Why IN Hanoi Our position: • Local present in the market with a dedicated team with focus within Oil & Gas, Maritime, Marine and Energy and Environment who understand the business culture and practices • Strong network within Oil & Gas community • Strong position in the market, commercially and politically Our activities within Oil & Gas in 2010: • Identifying market needs within IOR/EOR (to be available Dec 2010) • Closedly involved in the LNG value chain project with PetroVietnam.
  17. 17. Vision We give local ideas global Opportunities

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