The Dai Hung Phase 3 field development project was assigned by Petrovietnam to the Oil and Gas Exploration and Production Corporation (PVEP) as the investor and the Vietnam - Russia Joint Venture Vietsovpetro as the EPCI General Contractor. The project was approved for FDP on June 23, 2022 and has been nearly 18 months since the signing of the EPCI contract and the project commencement on November 23, 2022.

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Petrovietnam Chairman of the Board of Directors Le Manh Hung and leaders of PVEP and Vietsovpetro at the ceremony

According to Petrovietnam representative, the successful completion of the Dai Hung 01 platform jacket and the achievement of 2.3 million safety hours on April 17, 2024 marked and recognized the outstanding efforts of the project participants to ensure the progress, quality and safety of the project in the context of the project starting to be implemented after a prolonged period of the Covid-19 pandemic, the world economy was complicated due to the impact of geopolitical fluctuations, difficulties in material/equipment supply and transportation.

The Dai Hung Phase 3 development project has a total investment of over 400 million USD, with a total oil recovery output of over 22 million barrels of oil and 21.4 billion cubic feet of gas with a peak oil flow of about 9,000 barrels/day. When put into operation, it will contribute a large source of revenue to the state budget. The project is a premise for continued exploration and expansion of the entire Block 05-1(a) and neighboring blocks. As of April 20, 2024, the project progress reached about 66.7%, exceeding the plan by 0.6%.

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Chairman of Petrovietnam Board of Directors Le Manh Hung speaks at the ceremony

Speaking at the ceremony, Mr. Le Manh Hung - Chairman of the Board of Directors of Petrovietnam acknowledged, praised, highly appreciated the determination and expressed gratitude for the efforts of the investor PVEP, PVEP POC (Domestic Exploration Operations Branch), general contractor Vietsovpetro and contractors, bringing about impressive results up to the present time of the project, as well as recording the achievement of 2.3 million safe hours.

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Petrovietnam Chairman of the Board of Directors Le Manh Hung inspects the project site

Mr. Le Manh Hung emphasized that this is a meaningful project in the context that the country is in the process of recovering from the pandemic, promoting investment, creating momentum for socio-economic development and Petrovietnam is one of the driving forces for public investment to contribute to the development of the country. The Dai Hung Phase 3 project, when completed and put into operation, will be one of the solutions to prevent the decline in domestic oil and gas production.

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The staff participating in the project showed their determination to complete the project ahead of schedule.

The Chairman of the Board of Directors of Petrovietnam believes that the investor and contractor will successfully implement the project and receive the first oil flow (First Oil) earlier than planned, contributing to the successful implementation of the 2024 management plan and continuing to successfully implement the Group's ongoing projects; at the same time, he hopes that the employees participating in the project will continue to promote the achievements to successfully complete the Dai Hung Phase 3 project.

It is known that on April 17, 2023, after more than 12 months of implementation, the Dai Hung 01 platform foundation, with a weight of about 5,000 tons at a depth of more than 112 m, was completed by Vietsovpetro in the shore fabrication and successfully launched by the sliding towage method onto the Holmen Atlantic barge. Up to now, the Dai Hung 01 platform foundation has completed the reinforcement and lashing stages on the Holmen Atlantic barge and is ready for offshore installation on April 24, 2024, opening the 2024 offshore installation campaign of the Dai Hung phase 3 project.

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Dai Hung platform jacket launch April 1, 2024

Dai Hung field is located in deep offshore waters, Block 05-1(a), offshore Vietnam, and was put into operation by foreign contractors in 1994. However, due to many unforeseen unfavorable factors, exploitation activities here were not as effective as expected. In 2002, the foreign contractors decided to withdraw and sell all the invested means and equipment for a symbolic price of 1 USD to Petrovietnam.

To continue operating Dai Hung mine, in 2003, the Government decided to transfer the management of Dai Hung mine to PVEP under Petrovietnam. After that, the Block 05-1(a) Petroleum Contract was signed in 2009 with 100% participation rights of PVEP and the operator is Dai Hung Petroleum Company, the predecessor of PVEP POC. Overcoming many difficulties, after 30 years of operation and 20 years since being transferred to Vietnam, Dai Hung mine has made spectacular developments, contributing significantly to the production and business results of PVEP, Petrovietnam and the country's economic development, with a total output of over 70 million barrels of oil from 1994 to present.

Ngoc Minh