Vietnam's $B Oil & Gas Projects: PVD, PVS, GAS to Benefit 2026-2030

Overview

Vietnam is accelerating key oil and gas projects, including Lô B - Ô Môn, Lạc Đà Vàng, Sư Tử Trắng 2B, Khánh Mỹ - Đầm Dơi, and Cá Voi Xanh, to offset declining domestic production. This creates a long-term investment cycle benefiting upstream and midstream companies like PVD, PVB, PVS, GAS, and PVT through 2026-2030.

Key Facts

• Crude oil output fell from 18.7 million tonnes in 2015 to 9.64 million tonnes in 2025, a decline of about 48%.
• Dry gas production dropped nearly 49%, from 10.67 billion cubic meters to 5.5 billion cubic meters over the same period.
• The upstream oil and gas market is projected to grow at a CAGR of 5.57% from 2026 to 2031.
• The IIP index for oil and gas extraction grew 17.21% in Q2 2026, signaling a strong recovery.
• PVD’s PV DRILLING I will drill 3 wells at Sư Tử field over 249 days; PV DRILLING VIII will drill 6 wells at Kình Ngư Trắng over 267 days in 2026.
• PVD has chartered two jack-up rigs, THOR and Gunnlod, from Borr Drilling for drilling at Lô 15-1 and Hải Sư Đen.
• PVB has contracts for pipe coating related to Lô B - Ô Môn worth about VND 426 billion in 2026.

What Happened

According to a report by Kafi Research, Vietnam’s domestic energy supply is under pressure as traditional oil and gas fields decline. The report, citing data from Petrovietnam, highlights a significant drop in crude oil and gas production over the past decade. To address this, Vietnam is fast-tracking several major projects, including Lô B - Ô Môn, Lạc Đà Vàng, Sư Tử Trắng 2B, Khánh Mỹ - Đầm Dơi, and Cá Voi Xanh, which are expected to provide a continuous stream of work from 2026 to 2030.

The report notes that the Cá Voi Xanh project is still awaiting resolution of commercial issues before reaching FID, and first gas is likely delayed beyond 2030. Kafi Research believes the new project pipeline will help offset declining production from existing fields and open a long-term investment cycle, creating growth foundations for the entire oil and gas value chain.

Market Context

PVD (HOSE) closed at VND 17,950 on August 16, 2026, while PVS (HNX) traded at VND 35 on August 17, 2026, with a slight gain. GAS (HOSE) closed at VND 76,000, and PVB (HNX) at VND 21,600. The sector has been under pressure due to declining production, but the acceleration of new projects is expected to provide a tailwind. The broader Vietnamese market has shown resilience, and oil and gas stocks are likely to benefit from the renewed investment cycle.

Strategic Significance

For long-term investors, the acceleration of these projects signals a multi-year upcycle for Vietnam’s oil and gas sector. PVD stands to gain immediately from drilling campaigns, while PVS will convert its EPCI backlog into revenue through 2030. GAS and PVT are positioned to benefit from LNG demand at Nhơn Trạch 3&4, which starts commercial operation in early 2026. The decline in domestic production underscores the urgency of these investments, making them critical for energy security and economic growth.

What to Watch

• Final Investment Decision (FID) on Cá Voi Xanh and any updates on commercial negotiations.
• Q3 2026 earnings reports from PVD, PVS, and GAS to gauge revenue recognition from new projects.
• Progress on Lô B - Ô Môn and Lạc Đà Vàng, including key milestones and contract awards.
• LNG import volumes at Thị Vải terminal and Nhơn Trạch 3&4 operational performance.
• Any regulatory changes or policy support for the oil and gas sector from the Vietnamese government.