Lac Da Vang

Lac Da Vang Oil Field Profile

Location and Geology

• The Lac Da Vang oil field is located in Block 15-1/05 of the Cuu Long Basin, on the Southeast continental shelf of Vietnam, approximately 120 km east of Vung Tau City.
• The field is situated in shallow water with a depth of around 157 feet.

Discovery and Development

• The Lac Da Vang oil field was discovered in 2010.
• The project is currently in the construction phase, with the final investment decision (FID) approved in 2023.
• The development is expected to start commercial production in 2026 and is forecast to peak in 2028. Production is anticipated to continue until the field reaches its economic limit in 2043.

Ownership and Operation

• The field is operated by Murphy Cuu Long Bac Oil Co., Ltd. (MCB), a subsidiary of Murphy Oil Corporation.
• The ownership structure includes Murphy Oil (40%), PetroVietnam Exploration and Production Co. (35%), and SK Innovation (25%).

Infrastructure and Facilities

• The project involves the drilling of approximately eight wells.
• The development includes a central complex platform (Lac Da Vang - A Platform), which will process crude oil to meet export quality standards. The platform will be connected to an infield Floating Storage and Offloading (FSO) unit for storage and subsequent offloading.
• The Lac Da Vang - A Platform consists of topsides with two modules and a flare boom, weighing over 6,000 metric tons, along with a jacket and piles weighing more than 4,500 metric tons.

Contractors and Partners

• PTSC Mechanical & Construction (PTSC M&C) is the main contractor responsible for the Detailed Engineering, Procurement, Construction, Transportation, Installation, Hook-up & Commissioning (EPCIC) of the Lac Da Vang - A Platform.
• Other key stakeholders include Petrovietnam Exploration Production Corporation (PVEP), SK Earthon, and various subcontractors and project teams.

Production and Reserves

• The field is expected to achieve gross production of 30,000 to 40,000 barrels of oil equivalent per day, with the field being 96% oil. Murphy Oil will receive a premium to Brent oil pricing.
• The estimated gross recoverable resources are around 100 million barrels of oil equivalent, with preliminary net proved reserves of 13 million barrels of oil equivalent booked at the end of 2023.

Milestones and Timeline

• The First-Cut Ceremony for the fabrication of the Lac Da Vang - A Platform was held on October 16, 2024, marking the official start of the construction phase.
• The offshore installation is expected to be completed by the third quarter of 2026.
• Two exploration wells are planned for 2024 near the Lac Da Vang field, which could provide additional upside to the development.

Economic and Strategic Significance

• The Lac Da Vang project is Murphy Oil’s first offshore project in Vietnam and marks the first collaboration between Murphy and PTSC M&C.
• The project is significant for Vietnam, aligning with the country's energy development goals and demonstrating the capability of local companies like PTSC M&C in meeting international standards.