Hanoi: The state-run Korea National Oil Corp. (KNOC) announced that it has secured new exploration rights in Vietnam's second-largest oil field, allowing continued operations in the region until 2050. KNOC and its South Korean partners, including SK earthon Co., signed an agreement with Vietnam's national oil company, Petrovietnam, for these exploration rights.
According to Yonhap News Agency, under the agreement, KNOC obtained an 11.4 percent stake in the 15-1 oil block, which produces around 34,000 barrels of oil daily. This move ensures continued development in the area through September 2050, renewing KNOC's exploration rights before the previous concession was set to expire.
KNOC has been involved in exploring the 15-1 block for over two decades, having completed initial exploration in 2000 and commenced oil production in 2003. The company has produced approximately 430 million barrels of oil from the field as of 2024, generating $1.4 billion in cumulative profit.
KNOC and its partners are planning a $1.3 billion investment to develop the "white lion" gas field within block 15-1. Upon completion, the field is anticipated to supply 125 million cubic feet of natural gas daily to the Vietnamese market.
A KNOC official noted the significance of this agreement amid increasing political instability and geopolitical risks in the Middle East. The collaboration with Vietnam is seen as a strategic move to secure a stable energy supply and strengthen resource diplomacy between the two nations.
The agreement is expected to enhance mutual trust between the South Korean and Vietnamese governments, establishing a key hub for energy cooperation in Southeast Asia.