This document summarizes oil and gas activity in Asia, with a focus on China and South Korea. It discusses China's large oil and gas production and consumption, but also significant environmental issues from pollution. In response, China has taken actions like restricting companies and shutting down factories. In contrast, South Korea relies heavily on imports due to limited domestic resources, but has advanced refining capacity and made environmental protection a priority through policies and investment in clean energy.

1. OIL & GAS IN ASIA
Asia’s oil & gas industry has been exponentially increasing both production and
consumption of energy in recent years. According to the BP 2014 Statistical Review of World
Energy, the Asian Pacific region had proven reserves of 42.1 thousand million barrels of oil at
the end of 2013, with a reserves-to-production ratio of 14.01. For this specific report, we will
investigate the activity of the oil & gas industry and the environmental impact of the industry’s
activity in the countries of China, South Korea, Malaysia, Indonesia, Thailand, and Vietnam.
Japan, India, and the Philippines will be excluded, due to the fact that domestic oil & gas
production in each of these countries is either negligible or flat-lining (Japan’s local energy
resources meet less than 9% of the country’s demand2, India’s production of petroleum is
predicted to hover at one million bbl/day until 2040, compared to the increase in demand to 8.2
million bbl/day at around the same time3, and the Philippines rely primarily on renewable
resources such as geothermal and hydropower to supply their energy needs4.
CHINA
China is currently the world’s most populous country and fastest growing economy,
resulting in the largest energy consumption and production on the globe, alongside the United
States.5 At the end of 2013, China had a production rate of oil at 4180 thousand barrels daily, and
of natural gas at 117.1 billion cubic meters daily thanks to abundant domestic energy resources,
yet their daily consumption rate exceeds production in both, leading to heavy importing. 6 In
2014, China overtook the US as the world’s biggest net importer of oil by 0.2 billion barrels a
day.7 The central region of China contains the Sichuan, Ordos, and Jiangshan oil basins, which
are abundant in shale oils. The northern Songliao and Bohai Bay Basins contain dense kerogen
reserves, while northwest China’s Qaidam, Tarim, and Junggar Basins house bitumen and heavy
oils. Right along the eastern coast, offshore natural gas and oil reserves have been found in the
South Yellow Sea Basin and the East China Sea Basin as well. 8 Most of China’s inland oil
fields, such as the Daqing field in the north, have reached maturity, leading to new developments
in oil flow sustainability technology, as well as exploration into untapped reserves in the western
provinces and offshore fields for both petroleum and natural gas located in the South China Sea
(though there is much dispute over the energy resources in this area among the Pacific Asian
nations9). The three largest energy companies in China are China National Offshore Oil
Corporation (CNOOC), Chinese National Petroleum Corporation (CNPC), and China Petroleum
& Chemical Corporation, or Sinopec Limited.10
1 BP Statistical Reviewof World Energy 2014: http://www.bp.com/content/dam/bp/pdf/Energy-
economics/statistical-review-2014/BP-statistical-review-of-world-energy-2014-full-report.pdf
2 Japan,US Energy Information Administration:http://www.eia.gov/beta/international/analysis.cfm?iso=JPN
3 India,US Energy Information Administration:http://www.eia.gov/beta/international/analysis.cfm?iso=IND
4 Philippines,US Energy Information Administration:http://www.eia.gov/beta/international/analysis.cfm?iso=PHL
5 China,US Energy Information Administration:http://www.eia.gov/beta/international/country.cfm?iso=CHN
6 Refer to footnote 1.
7 “China Overtakes US as the Biggest Importer of Oil.”BBC Business News: http://www.bbc.com/news/business-
24475934
8 Refer to footnote 5.
9 Refer to footnote 5.
10 Fortune Global 500:http://fortune.com/global500/

2. However, all the unprecedented expansion of the oil & gas production and exploration in
combination with lax industry oversight and regulation has led to significant environmental
backlash. As of 2013, 59.6% of the nation’s underground water resources have been corrupted to
undrinkable levels, and the Chinese Environmental Protection Agency later found out that 71 of
74 monitored major cities “did not meet state environmental standards with various degrees of
problems11.” The Ministry of Environmental Protection has taken swift action, forbidding both
CNPC and Sinopec from building and expanding more oil refineries until the Fortune 500
companies meet emission targets that were previously failed in 2013.12 The State Council put an
action plan into effect on April 16, 2015 that would “lower import tariffs on components for
treatment plants and other equipment used to cut water pollution13,” as well as shut down small
factories involved in “dirty” industries such as papermaking, pesticide production, tanning,
fertilizer production, oil refining, and the coking sector by the end of 2016.14 The plan also
mandates improvements to irrigation systems to aid in the cleanup of the pollution of 20% of
Chinese farmlands15 and the implementation of a new set of standards for shipbuilders by the
beginning of 2018.16 Just how effective these measures will be, only time will tell.
11 “China’s Eco-crisis.”RT: http://rt.com/news/154268-underground-water-china-polluted/
12 “China’s Oil Giants Punished for Environmental Failings.”China Dialogue:
https://www.chinadialogue.net/article/show/single/en/6367-China-s-oil-giants-punished-for-environmental-
failings
13 “China Targets Dirty Businesses in Water Pollution Action Plan.”Financial Times:
http://www.ft.com/intl/cms/s/0/0977193c-e3fb-11e4-9039-00144feab7de.html#axzz3ftBv4H1t
14 “InsideChina’s Grand Plan to Fight Water Pollution.”Market Watch:
http://www.marketwatch.com/story/inside-chinas-grand-plan-for-water-pollution-2015-05-04?page=2
15 “One-fifth of China’s Farmland is Polluted,State Study Finds.”New York Times:
http://www.nytimes.com/2014/04/18/world/asia/one-fifth-of-chinas-farmland-is-polluted-state-report-finds.html
16 Refer to footnote 13.

3. SOUTH KOREA
Unlike China, South Korea must rely almost solely on imports to supply 97% of its
energy demand due to insufficient domestic resources. In fact, the nation is one of the world’s
leading energy importers, taking fourth place in coal imports, fifth in total petroleum and other
liquids, and second in the importing of liquefied natural gas (LNG), behind Japan.17 Although
the country has taken precautions in order to ensure a constant gas supply (“diversification of
supply sources, ensuring LNG supply on the basis of long-term contracts…18”), oil remains the
dominant energy source, accounting for 40% of Korea’s total primary energy supply (TPES),
while coal takes second place at 28% of the TPES.19 What little domestic exploration that occurs
is exclusively offshore, with active natural gas and ultra-light crude (condensates) wells in the
Yellow Sea Basin, Chenju Basin, and Ulleung Basin, all located in the seas surrounding Korea
and Japan.20 However, despite the setback of lack of domestic energy reserves, the nation houses
some of the most advanced refineries on the planet, and has the world’s sixth largest refining
capacity, containing 3 of the 10 largest crude oil refineries on Earth.21 GS Caltex (jointly owned
by Chevron and Korean conglomerate GS Group) owns a refining facility in Yeosu with a
capacity of 775,000 bbl/day.22 Other noteworthy refineries include the SK Innovation facilities in
Ulsan and Inchon, with capacities of 840,000 and 275,000 bbl/day, respectively, and the S-Oil
Corporation’s refinery in Ulsan, with a capacity of 669,000 bbl/day.23 When including refineries
owned by Hyundai, South Korea’s total capacity sits at 2,958,500 barrels refined per day.24
Significant companies with interest in oil & gas based in South Korea include GS Caltex, Korea
National Oil Corporation, SK Group, S-Oil Group, and Hyundai Oil Bank.25
17 South Korea, US Energy Information Administration:
http://www.eia.gov/beta/international/analysis.cfm?iso=KOR
18 Republic of Korea, Oil & Gas Security: Emergency Response of IEA Countries:
http://www.iea.org/publications/freepublications/publication/korea_oss2011.pdf
19 Refer to footnote 18.
20 Refer to footnote 17.
21 Refer to footnote 17.
22 GS Caltex: http://www.gscaltex.com/eng/company/production.aspx
23 “Asia-Pacific RefiningPrimed for Capacity Growth.” Oil & Gas Journal:
http://www.ogj.com/articles/print/volume-112/issue-12/special-report-worldwide-report/asia-pacific-refining-
primed-for-capacity-growth.html
24 Refer to footnote 23.
25 Refer to footnote 10.

4. In contrast to China, South Korea has put significant effort and funding into improving
environmental quality early on after the ecologically damaging reign of dictator Park Chunhee
during the 1970s.26 The government has passed a number of environmental laws relating to green
belts and emission restriction, and although citizens still tend to boil and filter their tap water, the
water quality levels are acceptable in most locations. The Ministry of Environment’s “1st Seoul
Metropolitan Air Quality Control Master Plan” that was effective from 2005 to 2014 has
effectively decreased the PM10 and nitrogen dioxide levels in the air surrounding the capital city
to levels similarly found in Paris, around 40 micrograms per cubic meter and 22 ppb,
respectively.27 In fact, “South Korea’s biggest air quality problem is dust blown from expanding
deserts in China [and Mongolia].28” The government has made a push to invest in clean energy
as well, putting up $8.2 billion into a 2,500 MV wind farm in 2010 and $1.9 billion in 2014 to
create six clean energy-related businesses.29 South Korea is the world’s fifth largest user of
nuclear power, with around 70% of the country’s nuclear waste in temporary storage pools,
prompting discussion into switching to underground waste storage starting in 2030.30
26 How clean is your country? South Korea, AZO Cleantech:
http://www.azocleantech.com/article.aspx?ArticleID=552
27 Urban Air Quality Management, Ministry of Environment: http://eng.me.go.kr/eng/web/index.do?menuId=235
28 Refer to footnote 26.
29 Refer to footnote 26.
30 “South Korea Needs New Facility for Spent Nuclear Fuel.” Reuters: http://uk.reuters.com/article/2015/06/11/us-
nuclear-southkorea-spentfuel-idUKKBN0OR0AT20150611

5. MALAYSIA
Although the country only ranks 27th in the world for primary energy production,
Malaysia is one of the Asian Pacific region’s premier areas of oil and gas production and export.
In fact, “Malaysia is the world's second-largest exporter of liquefied natural gas and the second-
largest oil and natural gas producer in Southeast Asia, and is strategically located amid important
routes for seaborne energy trade. 31” The nation sits on top of the fourth-highest offshore oil
reserves in Asia-Pacific after China, India, and Vietnam, yet takes advantage of their exporting
infrastructure to rise above other competitor countries.32 The largest reserve in the country’s
possession is the Lawit Field, which is located right in middle of the South China Sea and came
online in June 1997.33 Due to the nation’s more than exceptional work in the energy industry,
Malaysia has grown to heavily incorporate it into the growth of its overall economy, expanding
energy to almost 20% of the total gross domestic product.34 Being situated right at the South
China Sea allows Malaysia to account for about half of the region’s oil production of 1.3 million
bbl/day.35 Although the country is taking full advantage of its prosperous upstream operations,
downstream projects still need attention, prompting organizations to start development of the
planned 22,000-acre Pengerang Integrated Petroleum Complex (PIPC) and the 4,065-acre
Sipitang Oil & Gas Industrial Park (SOGIP) that will house oil refineries, naphtha crackers,
petrochemical plants and LNG import terminals and regasification plants.36 Most operations are
undertaken by significant international energy companies at work in Malaysia include Shell,
ExxonMobil, Conoco, Hess Oil & Gas, Rools-Royce, and Nippon Energy, while only a handful
of small local companies, like Perisai Petroleum, Petra Energy, and Petronas Carigali, to name a
few, are known to operate reserves.37
Location Proven Oil
Reserves (Billion
Barrels)
Proven Gas
Reserves (Trillion
Cubic Feet)
Oil Production
(Barrels/Day)
Gas Production
(Billion Cubic
Feet)
Brunei 1.35 14.1 145,000 340
Cambodia 0 0 0 0
China* 1 (est.) 3.5 290,000 141
Indonesia* 0.2 29.7 46,000 0
31 Malaysia,US Energy Information Administration: http://www.eia.gov/beta/international/analysis.cfm?iso=MYS
32 Refer to footnote 31.
33 “South China Sea Oil and Natural Gas.”Global Security:
http://www.globalsecurity.org/military/world/war/spratly-oil.htm
34 Refer to footnote 31.
35 Refer to footnote 33.
36 “Meet Malaysia.”MIDA:
http://www.mida.gov.my/env3/uploads/Publications_pdf/MeetMalaysia_AsiaOilGasHub/MeetMalaysiaONG_2013
.pdf
37 Refer to footnote 36.

6. Malaysia 3.9 79.8 645,000 1,300
Philippines 0.2 2.7 <1,000 0
Singapore 0 0 0 0
cTaiwan <0.01 2.7 <1,000 30
Thailand 0.3 7.0 59,000 482
Vietnam 0.6 6.0 180,000 30
Total 7.5 (est.) 145.5 1,367,000 2323
*Only the regions near the South China Sea are included
(Taken from Global Security)
Malaysia’s biggest environmental issues stem from the mass production of palm oil,
which is devastating the tropical forests in the area.38 Indonesia and Malaysia are responsible for
90% of global palm oil production, and endangered species such as the Sumatran tiger, Oriental
dart, and elephants and rhinos are facing a dramatic reduction in their habitat space due to the
industry.39 Malaysia’s air quality was decent overall compared to the rest of the Pacific Asian
region, until Indonesian peat fires and forest fires created a large haze problem in the country in
2005.40 In fact, the smoke was so thick in the main city of Kuala Lumpur that a state of
emergency was declared, due to a reading of over 500 on the Malaysian air pollution index.41
Recently this year, Malaysia adopted the Kyoto Protocol at Copenhagen 2015 in an attempt to
start an action plan on reducing emissions.42
38 Environmental Problems in Malaysia,WWF:
http://wwf.panda.org/who_we_are/wwf_offices/malaysia/environmental_problems_malaysia/
39 “Malaysian Deforestation:Why is PalmOil so Controversial?”The Telegraph:
http://www.telegraph.co.uk/news/worldnews/asia/malaysia/8295815/Malaysia-deforestation-Why-is-palm-oil-so-
controversial.html
40 “Indonesian Forest Fires Again CauseHaze in Malaysia.”Mongabay:
http://news.mongabay.com/2005/08/indonesian-forest-fires-again-cause-haze-in-malaysia/
41 Refer to footnote 40.
42Environmental Issues,Ministry of Foreign Affairs,Malaysia: http://www.kln.gov.my/web/guest/md-
environmental_issues

7. INDONESIA
Though Indonesia is the 4th most populous country in the world behind China, India, and
the USA, the former net oil exporter’s energy industry now faces challenges due to “regulatory
uncertainty and inadequate investment.43” As of now, the country is desperately trying to find a
balance between keeping up its exemplary exports (Indonesia ranked as the world’s largest coal
exporter by weight in 2012 and is the 4th largest LNG exporter as of 2013) while also meeting a
growing demand back home.44 This issue has prompted the nation’s withdrawal from the
Organization of the Petroleum Exporting Countries (OPEC) at the end of 2008, though the
organization’s only Southeast Asian member did not have much influence to begin with.45 Most
of Indonesia’s product comes from northern Sumatra, but now the area’s resources are drying up,
causing stagnation in production, with very few fresh, new and proven reserves.46 However, the
nation remains the world’s largest producer and exporter of thermal coal to this day, overtaking
Australia’s production back in 2011. Roughly 75% of the produced coal is shipped off as
export.47 A recently developed resource to in the country is coal bed methane (CBM), with
reserves of an estimated 453 Tcf found in South Sumatra, South Kalimantan, and East
Kalimantan.48 PT Adaro is the country’s largest coal producer, having turned up 50 million short
tons of coal in 2012.49 PT Bumi Resource’s subsidiary, PT Kaltim Prima Coal (KPC), is in
possession of one of the world’s largest coal mines.50 As for oil & gas, this part of the energy
industry is dominated by international firms such as Exxonmobil51, BP, ConocoPhilips52, and
Chevron.53
43 Indonesia,US Energy Information Administration:http://www.eia.gov/beta/international/analysis.cfm?iso=IDN
44 Refer to footnote 43.
45 “Indonesia to Withdrawfrom OPEC.” BBC News: http://news.bbc.co.uk/2/hi/business/7423008.stm
46 Refer to footnote 45.
47 Refer to footnote 43.
48 Oil and Gas in Indonesia,PwC: http://www.pwc.com/id/en/publications/assets/oil_and_gas_guide_2014.pdf
49 Refer to footnote 43.
50 Refer to footnote 43.
51 Exxonmobil Indonesia:http://www.exxonmobil.com/Indonesia-English/PA/about.aspx
52 ConocoPhillipsIndonesia:http://careers.conocophillips.com/en/location/indonesia-careers/
53 Indonesia FactSheet, Chevron: http://www.chevron.com/documents/pdf/indonesiafactsheet.pdf

8. Indonesia is the world’s 3rd largest geothermal energy generator behind the USA and the
Philippines, after adding 130 megawatts (MW) of geothermal capacity back in 2012.54 Despite
their large use of renewable energy, the nation faces unsustainable practices of deforestation,
illegal wildlife trade, overfishing, and pollution, which originates from heavy urbanization along
the Indonesian coast. 55 Like Malaysia, the palm oil industry is also largely prevalent in the
country, with more than 3.5 million workers pledged to the sub-sector.56 In 2009, Australia was
responsible for the Montara oil spill into the Timor Sea, which devastated the Indonesian fishing
and seaweed farming sectors.57 Currently, Law No. 22/2001 regulates the oil & gas industry by
setting up environmental standards for all energy organizations and declaring that foreign
companies in the nation are allowed to engage in either upstream or downstream operations but
cannot be involved in both areas.58
54 Refer to footnote 43.
55 Environmental problems in Indonesia.WWF:
http://wwf.panda.org/who_we_are/wwf_offices/indonesia/environmental_problems_indonesia/
56 Refer to footnote 55.
57 “New report Calls for Inquiry into Montara Oil Spill.”The Sydney MorningHerald:
http://www.smh.com.au/world/new-report-calls-for-inquiry-into-montara-oil-spill-20150714-gibhj0.html
58 “Challenges in Indonesia’s Oil and Gas Industry.”Global BusinessGuideIndonesia:
http://www.gbgindonesia.com/en/energy/article/2011/challenges_in_indonesia_s_oil_and_gas_industry.php

9. THAILAND
Although Thailand is forced to import most of its oil supply due to a lack of domestic
reserves paired with a spike in demand (just this last year, crude oil reserves dropped some 4
million barrels, according to Oil & Gas Journal), the country does sit on large proved reserves of
natural gas, and has recently become a net importer of natural gas due to high demand growth.59
The nation currently holds a domestic supply of 1,636,388 tetrajoules of natural gas, according to
the International Energy Agency (IEA).60 Prominent oil & gas reserves are mostly offshore in the
Gulf of Thailand, and include Malay Basin, Pattani Basin (the southern area contains the largest
Erawan gas field), and the onshore Mae Sot Basin, with exploration occurring in the Chumpon
Basin, Kra Basin, and Songkla Basin.61 One of the most recent oil fields to come online is
offshore at Manora, which is operated by Mubadala Petroleum.62 Perhaps the biggest company at
work in Thailand is Chevron, as they have operations going on in the Benjamas (the nation’s
largest crude oil field), the Pakakrong fields, the Lanta field, and the Tantawan field.63 Chevron
Corporation hit their first gas from the Platong II Project back in October 2011, with a
retrospectively accurate projection at the time of producing 18,000 bbl/day of LNG.64 Other
significant companies include PTT Public Company Limited’s subsidiary, PTT Exploration and
Production (PTTEP), who does massive production in the Sirikit field, and Salamander Energy
and Coastal Energy, who run projects in the shallow water fields of Bualuang, Songkhla, and
Bua Ban.65 The prominent Unocal Limited, who has a historical average of drilling about 55
wells per year, is at work in the Southern Pattani Basin in search of even more promising
reserves of natural gas.66
59 Thailand.US Energy Information Administration:http://www.eia.gov/beta/international/analysis.cfm?iso=THA
60 Thailand statistics.International Energy Agency:
http://www.iea.org/statistics/statisticssearch/report/?country=Thailand&product=naturalgas&year=2012
61 Petroleum Geology of the Gulf of Thailand.GregCroft Inc.: http://www.gregcroft.com/thailand.ivnu
62 “Manora Oil Field OffshoreThailand Comes on Stream.” Oil & Gas Journal:
http://www.ogj.com/articles/2014/11/manora-oil-field-offshore-thailand-comes-on-stream.html
63 Refer to footnote 59.
64 “Chevron Announces FirstGas from Platong II Projectin Gulf of Thailand.”Chevron:
http://www.chevron.com/chevron/pressreleases/article/10242011_chevronannouncesfirstgasfromplatongiiprojec
tingulfofthailand.news
65 Refer to footnote 59.
66 Refer to footnote 61.

10. (Taken from Greg Croft Inc.)

11. Currently, environmental policy isn’t very strict in Thailand, resulting in everything from
water pollution, to smog and air pollution, to deforestation. The government often approves
many of the new industrial projects, such as the recent plan of the European and Mediterranean
Plant Protection Organization (EPPO) to increase coal-fired generation as a means to reduce the
nation’s dependency on natural gas imports to meet energy needs.67 In fact, there is a string of
hunger strikes that are currently being held in protest to Thailand’s plan to install new coal plants
on the Andaman Coast in the Krabi province, an area which houses the nation’s 2nd largest area
of sea grass bed, and was even featured in one of Leonardo DiCaprio’s films.68 The Bangkok
Metropolitan Administration collects around 8000 tons of fresh trash every day, and yet the
majority of the waste in the area is never processed. This has led to a “critical level” of pollution
in the streets and canals of the city.69 Most of the air pollution in urban areas arises from
congestion in road networks.70 There is severe danger for environmental protesters as well, with
many companies going as far as to having activists killed off by hired guns if energy operations
are being impeded.71 Currently, in order to resolve these issues, the country is attempting to
adapt an Alternative Energy Development Plan (AEDP) that would last from 2012 till 2021.72
Back in 2008, “the electricity capacity of municipal solid waste in Thailand was 5000 kW, and
the total electricity generation was 94.63 TJ.73” Now, alongside the generation of solar, wind,
and hydro power, increased usage of biofuels such as sugarcane, cassava, molasses, and palm oil
converted to biodiesel fuels will be utilized in the attempt to reach the goal of 25% of the total
energy consumption in Thailand being renewable energy by 2021.74 The United Nations is aiding
the country as well in setting up new emission standards, enforcing fuel reformulation in the
industry, and improving traffic management and VKT, or vehicle kilometers traveled.75
67 Refer to footnote 59.
68 “Hunger Strikes,Protests to Oppose Thailand’s Plan for Coal Plants on the Andaman Coast”. US News:
http://www.usnews.com/news/world/articles/2015/07/21/coal-plant-proposed-for-pristine-thai-coast-sparks-
outcry
69 “Thailand:Rivers,Roads,and the Pollution They Hold.” Pulitzer Center:
http://pulitzercenter.org/reporting/thailand-conservation-sustainability-rivers-roads-water-air-pollution-trash-
Bangkok
70 Environmental Policies in Thailand and their Effects. United Nations:
http://www.un.org/esa/gite/iandm/viroatpaper.pdf
71 “Thai Environmentalists Pay for Activismwith their Lives.” Aljazeera America:
http://projects.aljazeera.com/2015/04/thailand-activists/
72 Thailand Biofuel Policies.International Energy Agency:
https://www.iea.org/media/technologyplatform/workshops/southeastasiabioenergy2014/Thailand.pdf
73 Biomass in Thailand.World Energy Council:
https://www.worldenergy.org/data/resources/country/thailand/biomass/
74 Refer to footnote 72.
75 Refer to footnote 70.

12. VIETNAM
Unlike some of the countries previously discussed, Vietnam has not only been taking full
advantage of its residual oil and gas reserves in the South China Sea, but also has worked on
reforming the energy market and allowing for greater investment and cooperation with greater
foreign companies and nations in the industry’s sector.76 On September 15, 2014, Vietnam and
India signed a new agreement to “expand cooperation in oil and gas exploration and production
in contested waters of the South China Sea, despite previous objections from China77” (China
argued that this treaty violated Chinese sovereignty). China and Vietnam have had ongoing
tension ever since conflict arose on May 7, 2014, when Vietnam suspected that China was
planning to illegally drill into the Vietnam continental shelf.78 Although the nation has
established favorable relations with surrounding countries, their personal resources are beginning
to diminish. According to Oil and Gas Journal, even though Vietnam’s recent success in
offshore exploration has increased their reserves from 0.6 billion barrels in 2011 to 4.4 billion
barrels as of 2012, that figure has remained constant into 2013 and 2014.79 This goes to show
that although the nation’s diplomacy is certainly aiding the energy sector, what resources they
managed to find earlier are reaching maturity (a production rate of 353,700 bbl/day in 2013 was
3% less from production in 2012 and 12% down from the 2004 peak of 403,000 bbl/day80).
Along with rising demands, this caused Vietnam to become a net exporter of crude oil, but a net
importer of all oil products and LNG.81 The oil that they do get comes primarily from the Cuu
Long Basin, with production primarily in the Bach Ho (White Tiger) Field in the east, the Rong
(Dragon) Field in the south, and the Rang Dong Field in the southeast.82 Being a communist
nation, oil & gas is monopolized by a single state-owned enterprise, PetroVietnam.83 This key
company runs operations and production of oil and natural gas in the country, with an upstream
subsidiary PetroVietnam Exploration and Production (PVEP) and a number of joint ventures
with international oil companies such as ExxonMobil, Chevron, and Zarubenzhneft (foreign
firms, however, must receive approval from the Oil and Gas Department of the Prime Minister
before commencing production and have no other choice but to negotiate with PVEP on almost
all acquired upstream licenses).84
76 Vietnam. US Energy Information Adminstration:http://www.eia.gov/beta/international/country.cfm?iso=VNM
77 “Vietnam, India Sign New Oil and Gas Deal despite Previous Objections fromChina.”Wall Street Journal:
http://www.wsj.com/articles/vietnam-india-to-expand-oil-exploration-in-contested-south-china-sea-1410777168
78 Refer to footnote 76.
79 “Global reserves, Oil Production ShowIncreases for 2014.” Oil and Gas Journal:
http://www.ogj.com/articles/print/volume-112/issue-12/special-report-worldwide-report/global-reserves-oil-
production-show-increases-for-2014.html
80 Refer to footnote 76.
81 Refer to footnote 76.
82 Petroleum Geology of Cuu Long Basin.AAPG Search and Discovery:
http://www.searchanddiscovery.com/documents/2004/hung/
83 Oil and gas lawin Vietnam. Norton Rose Fulbright:
http://www.nortonrosefulbright.com/knowledge/publications/101076/oil-and-gas-law-in-vietnam
84 Refer to footnote 76.

13. Due to the explosive economic growth of Vietnam in recent years, the local environment
has taken a huge hit, with issues ranging from deforestation, to water & air pollution, to the
hunting of endangered wildlife (the last Vietnamese Javan rhino was killed in 2010 for its
ivory85). The air in urban areas was found to contain pollutants such as SO2, CO, NO2, and even
lead (Pb), while both marine and inland waters have been polluted with heavy metals and organic
substances.86 Where the environment is concerned, the ministry of Natural Resources and
Environment is usually the one to setup regulations and verify land us permits.87 However, as
soon as petroleum is involved, the Prime Minister’s office becomes the primary decision-maker,
though the input of the various ministries is still considered.88 The Prime Minister proposes all
new laws which concern the energy industry and authorizes new regulations, such as the
National Strategy for the Energy Sector, the Gas Master Plan, and the Energy Master Plan.89 In
terms of measures to insure ecological protection, the Prime Minister issued technical regulations
in 2004 to ensure safe onshore gas pipeline systems, The National Strategy on Energy
Development (2007-2020), and a 2008 Petroleum Law.90 The NSED’s goal was to shift
management of the oil and gas sector into a “state-controlled market mechanism”, while the
Petroleum Law gave new responsibilities to the Ministry of Industry, although much of the
85 20 years WWF-Vietnam – What we have achieved. WWF:
http://wwf.panda.org/about_our_earth/all_publications/?248151/20-years-wwf-vietnam---what-we-have-
achieved
86 Key issuesummary.State of the Environment in Vietnam 2001:
http://www.rrcap.ait.asia/pub/soe/vietnam/sumary/key_issue_sumary.htm#2.5.
87 “Policy Suggestions for the Initial Development of Vietnam’s Gas Industry.” The Brookings Institution Center for
Northeast Asian Policy Studies: http://www.brookings.edu/~/media/research/files/papers/2012/9/vietnam-gas-
industry-hai/09-vietnam-gas-industry-hai.pdf
88 Refer to footnote 83.
89 Refer to footnote 83.
90 Refer to footnote 87.

14. burden actually fell onto PetroVietnam’s shoulders. Vietnam recently commenced an
environmental protection tax in 2012 on all goods which may cause damage to the environment,
which included all oil and gas from production and import (export is exempted).91
Asia’s development in the energy sector will continue to grow and fluctuate in the
coming years. Some of the listed countries are still in various exploration phases and
dramatically increasing production, while others are beginning to increase imports and
considering negotiation with foreign suppliers. Perhaps some of the countries dismissed in the
introduction of this report will rise up and become net importers themselves somewhere down
the line. How well the countries’ accept their diverse environmental responsibilities is also still
in question. What can be determined for certain is that the Pacific Asian region is most definitely
not finished with oil & gas just yet. ---
91 Refer to footnote 83.