Vietnam Starts Construction of 12.4 Bcm Khanh My-Dam Doi Gas Field, First Gas in Q4 2027
This Aveluro analysis covers PVS on HNX in the Oil & Gas sector. The classified event type is production disruption, with positive sentiment and a deterministic market-impact score of 6.0/10. Aveluro classifies this story as a positive catalyst in the stock's news coverage. Source coverage came from CafeF - Doanh nghiệp, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
On July 28, PVEP (a subsidiary of Petrovietnam) officially started construction of the Khanh My-Dam Doi gas field development project in Block 46/13, offshore southwestern Vietnam. The project, with total reserves of 12.4 billion cubic meters and an investment of nearly $350 million (over VND 10,000 billion), is expected to deliver first gas in Q4 2027. The development will directly benefit PVS (PTSC) as a key contractor, and will supply gas to the Ca Mau power and fertilizer complex, supporting POW and DCM.
Key Facts
- Total investment: nearly $350 million (over VND 10,000 billion).
- Combined reserves: approximately 12.4 billion cubic meters (438 billion cubic feet).
- First gas target: Q4 2027.
- Pipeline: 32 km long, 20-inch diameter, connecting to existing PM3 infrastructure.
- PVS (PTSC M&C) is expected to secure contracts worth an estimated $175 million for topside fabrication and installation, with revenue recognition in 2026-2027.
- The project includes two unmanned four-leg wellhead platforms.
- Vietsovpetro is the main contractor; PVEP Khanh My is the project operator.
What Happened
On July 28, PVEP (Petrovietnam Exploration and Production Corporation) held a groundbreaking ceremony for the Khanh My-Dam Doi gas field development project in Block 46/13, located in the Malay-Tho Chu basin, about 205 km southwest of Ca Mau cape, in water depths of approximately 53 meters. The project comprises two unmanned wellhead platforms, a 32-km subsea pipeline, and modifications to existing facilities at the BRA and BRB platforms in Block PM3.
The field was discovered in 1996 (Dam Doi) and 1998 (Khanh My), with PVEP taking over operations in 2014. The EPCI contract was signed on May 12, 2026, between PVEP Khanh My and Vietsovpetro, which subsequently subcontracted PTSC M&C (a subsidiary of PVS) for the design, procurement, and fabrication of two topsides. According to Vietcap Securities, PVS’s contract value is estimated at $175 million, to be recognized in 2026-2027.
Market Context
PVS closed at VND 33,300 on July 27 on HNX, while POW closed at VND 13,000 (down 0.76%) and DCM at VND 29,000 on the same day. The project adds to PVS’s order book, which has been supported by upstream oil and gas activity in Vietnam. POW and DCM stand to benefit from additional gas supply to the Ca Mau complex, which has faced feedstock constraints. The development aligns with Vietnam’s efforts to sustain domestic gas production amid declining output from mature fields.
Strategic Significance
For PVS, the Khanh My-Dam Doi project reinforces its role as a key engineering and fabrication contractor for Vietnam’s offshore oil and gas sector. The estimated $175 million contract provides revenue visibility for 2026-2027. For POW and DCM, the new gas source will help maintain utilization rates at the Ca Mau power plant and fertilizer plant, reducing reliance on imported LNG or alternative fuels. The project also demonstrates continued upstream investment by Petrovietnam, supporting the broader energy value chain.
What to Watch
- PVS’s Q3 2026 earnings release for contract backlog updates.
- Progress on EPCI milestones and any changes to the first gas timeline.
- Gas sales agreement negotiations between PVEP and buyers (POW, DCM).
- Potential additional discoveries or development plans in Block 46/13.
- Impact on PVS’s stock price relative to contract award announcements.