Vietnam Oil & Gas Upstream Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 176.88 Thousand barrels per day |
| Market Volume (2029) | 181.34 Thousand barrels per day |
| CAGR (2024 - 2029) | 0.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Vietnam Oil & Gas Upstream Market Analysis
The Vietnam Oil & Gas Upstream Market size is estimated at 176.88 Thousand barrels per day in 2024, and is expected to reach 181.34 Thousand barrels per day by 2029, growing at a CAGR of 0.5% during the forecast period (2024-2029).
The COVID-19 pandemic had an adverse impact on the upstream market due to disrupted operations caused by the lack of manpower at terminals and ports. Currently, the market has reached pre-pandemic levels.
- The upstream market of Vietnam is primarily driven by two main factors, the growing demand for Vietnam's sweet crude in Southeast Asian markets and the high prices of crude oil, which can bring more revenue for new investments.
- However, the exceptionally high interference of government in the oil industry, like approvals and permits for even technical details, has hampered the industry's growth.
- Despite the unfavorable investment climate in the region, many foreign companies have expressed interest in experimenting with their technology in the region. A joint venture with Russia, VietsovPetro has extended its cooperation agreement with Petrovietnam till 2030 to pursue exploration and production activities in the country. The United Drilling Tools, an India-based oilfield equipment manufacturer, recently promoted its products in Vietnam. Such developments create ample opportunities for the Vietnamese upstream market.
Vietnam Oil & Gas Upstream Market Trends
The Offshore Segment Expected to Dominate the Market
- Vietnam's oil and gas upstream market is witnessing an upward trend driven by several key factors. Firstly, the country possesses significant offshore oil and gas reserves in the South China Sea, particularly in basins like Cuu Long and Nam Con Son. Ongoing exploration efforts have led to the discovery of new reserves, attracting investments and stimulating the growth of the upstream sector.
- Secondly, the Vietnamese government has actively fostered an environment conducive to foreign investment in the oil and gas industry. By implementing favorable policies and regulatory frameworks, such as offering production sharing contracts (PSCs), the government has encouraged international companies to participate in exploration and production activities.
- Furthermore, Vietnam has been focusing on infrastructure development to support upstream operations. Investments have been made in the construction of offshore production platforms, drilling rigs, pipelines, and onshore processing facilities. Such infrastructure enhancements strengthen Vietnam's oil and gas exploration, production, and export capabilities.
- In 2021, the crude oil production in the country was 192 thousand barrels per day, the majority of which were from offshore blocks. Private companies have shown interest in investing in more offshore projects by acquiring stakes in the offshore oil and gas fields. Moreover, the number of rigs between April and May 2023 also increased.
- In January 2023, Pharos Energy announced that it is planning to start drilling in Block 125 offshore in eastern Vietnam.
- Such developments are expected to accelerate the upstream market in the country during the forecast period.
Increased Demand for Natural Gas Expected to Drive the Market
- The oil and gas upstream market in Vietnam is poised to experience growth driven by the increased demand for natural gas. This surge in demand is primarily attributed to several factors.
- Firstly, as part of the global energy transition towards cleaner fuels, natural gas is gaining prominence as a cleaner alternative to coal and oil. In its efforts to reduce carbon emissions and meet climate commitments, Vietnam is shifting towards utilizing natural gas for power generation and industrial applications. This transition creates opportunities for exploration and production activities in the country's upstream sector.
- Secondly, Vietnam is expanding its electricity generation capacity, and natural gas is favored as a fuel for power plants due to its lower carbon emissions compared to coal. As the demand for electricity continues to rise, the construction of natural gas-fired power plants necessitates a stable supply of natural gas, thereby driving exploration and production efforts in the upstream market.
- Moreover, Vietnam's industrial and commercial sectors rely heavily on natural gas for various applications such as manufacturing, petrochemicals, and hospitality. With ongoing industrial growth, the demand for natural gas as a fuel and feedstock is increasing, further stimulating the need for additional natural gas reserves and driving activity in the upstream market.
- The country has recently shown interest in increasing the share of natural gas in the power generation mix. According to Electricity of Vietnam Group (EVN), as of April 2022, the natural gas electricity generation stands at 12%. of total energy mix.
- In February 2023, the Vietnamese government approved the investment policy of the 2,250 MW Son My 2 CCGT power plant project in Quy Nhon, Binh Dinh province. The project will require an investment of USD 1.8 billion, and the construction is planned to begin in 2023, and commissioning is scheduled for 2025.
- Additionally, Vietnam aims to reduce its dependence on imported natural gas by increasing domestic production. This desire for import substitution encourages investment in exploration and production activities to tap into the country's own natural gas reserves, supporting the growth of the upstream market.
- Owing to such developments, it is predicted that the growing demand for natural gas is expected to drive the oil and gas upstream market in the country.
Vietnam Oil & Gas Upstream Industry Overview
The Vietnamese oil and gas upstream market is moderately consolidated. Some of the key players in the market (in no particular order) include ExxonMobil Corporation, Eni SpA, Vietnam Oil and Gas Group (Petrovietnam), Essar Oil And Gas Exploration And Production Ltd, and Jadestone Energy PLC., among others.
Vietnam Oil & Gas Upstream Market Leaders
Exxon Mobil Corporation
Eni S.p.A
Vietnam Oil and Gas Group (Petrovietnam)
Jadestone Energy Plc.
Essar Oil And Gas Exploration And Production Ltd
*Disclaimer: Major Players sorted in no particular order
Vietnam Oil & Gas Upstream Market News
- August 2022: ONGC Videsh Ltd got the seventh extension to explore oil and gas in a Vietnamese block in the contested waters of the South China Sea.
- January 2023: the Vietnamese government announced that it is seeking to accelerate preparatory work for two gas projects - Ca Voi Xanh (Blue Whale) and Block B - to diversify the country's energy sources soon.
Vietnam Oil & Gas Upstream Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Crude Oil Production and Forecast, in Thousand Barrels, till 2028
4.3 Natural Gas Production Forecast, in billion cubic feet per day, till 2028
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Market Dynamics
4.6.1 Drivers
4.6.1.1 Increasing Crude Oil Prices
4.6.1.2 Increasing Demand For Natural Gas For Energy Consumption
4.6.2 Restraints
4.6.2.1 Complex Permitting Processes, And Bureaucratic Procedures
4.7 Supply Chain Analysis
4.8 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Location of Deployment
5.1.1 Onshore
5.1.2 Offshore
5.2 Product
5.2.1 Crude Oil
5.2.2 Natural Gas
5.2.3 Other Products
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Vietnam Oil and Gas Group (Petrovietnam)
6.3.2 ExxonMobil Corporation
6.3.3 Japan Drilling Co. Ltd
6.3.4 Jadestone Energy PLC
6.3.5 Saipem SpA
6.3.6 Eni SpA
6.3.7 Essar Oil and Gas Exploration and Production Ltd
6.3.8 ONGC Videsh Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Collaboration With Foreign Companies
Vietnam Oil & Gas Upstream Industry Segmentation
The oil and gas upstream market refers to the oil and gas industry's exploration and production (E&P) sector. It involves activities related to searching for and extracting crude oil and natural gas reserves from underground or underwater reservoirs. The upstream sector encompasses various stages, including seismic surveys, drilling, well construction, and production operations.
The Vietnamese oil and gas upstream market is segmented by location of deployment and product. By location of deployment, the market is segmented into onshore and offshore. By product, the market is segmented into natural gas, crude oil, and other products. For each segment, the market sizing and forecasts have been done based on volume (thousand barrels per day and billion cubic feet per day).
| Location of Deployment | |
| Onshore | |
| Offshore |
| Product | |
| Crude Oil | |
| Natural Gas | |
| Other Products |
Vietnam Oil & Gas Upstream Market Research FAQs
How big is the Vietnam Oil & Gas Upstream Market?
The Vietnam Oil & Gas Upstream Market size is expected to reach 176.88 thousand barrels per day in 2024 and grow at a CAGR of 0.5% to reach 181.34 thousand barrels per day by 2029.
What is the current Vietnam Oil & Gas Upstream Market size?
In 2024, the Vietnam Oil & Gas Upstream Market size is expected to reach 176.88 thousand barrels per day.
Who are the key players in Vietnam Oil & Gas Upstream Market?
Exxon Mobil Corporation , Eni S.p.A , Vietnam Oil and Gas Group (Petrovietnam) , Jadestone Energy Plc. and Essar Oil And Gas Exploration And Production Ltd are the major companies operating in the Vietnam Oil & Gas Upstream Market.
What years does this Vietnam Oil & Gas Upstream Market cover, and what was the market size in 2023?
In 2023, the Vietnam Oil & Gas Upstream Market size was estimated at 176 thousand barrels per day. The report covers the Vietnam Oil & Gas Upstream Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Vietnam Oil & Gas Upstream Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Vietnam Oil and Gas Upstream Industry Report
Statistics for the 2024 Vietnam Oil & Gas Upstream market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Vietnam Oil & Gas Upstream analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
