SlideShare verwendet Cookies, um die Funktionalität und Leistungsfähigkeit der Webseite zu verbessern und Ihnen relevante Werbung bereitzustellen. Wenn Sie diese Webseite weiter besuchen, erklären Sie sich mit der Verwendung von Cookies auf dieser Seite einverstanden. Lesen Sie bitte unsere Nutzervereinbarung und die Datenschutzrichtlinie.
SlideShare verwendet Cookies, um die Funktionalität und Leistungsfähigkeit der Webseite zu verbessern und Ihnen relevante Werbung bereitzustellen. Wenn Sie diese Webseite weiter besuchen, erklären Sie sich mit der Verwendung von Cookies auf dieser Seite einverstanden. Lesen Sie bitte unsere unsere Datenschutzrichtlinie und die Nutzervereinbarung.
Vietnam Oil And Gas Equipments And Services Market
MARKET RESEARCH ON VIETNAM’S OIL AND GAS EQUIPMENT AND SERVICESOverview Oil and Gas Field Machinery and 2005 2006 2007 Services (actual) (estimated) (estimated) Total Market Size 1,025 1,160 1,350 Total Local Production 475 555 650 Total Exports 0 0 Total Imports 550 605 700 Imports from the U.S. 160 175 200 The above statistics are in US$ millions and are unofficial estimates.Vietnam’s oil and gas industry is currently the countrys biggest foreign currencyearner and a major procurer of imported technology. Since the first export shipmentin April 1987, crude oil has earned over US$17 billion for Vietnam. The oil and gasindustry contributes US$1 billion to Vietnam’s State budget every year. The rapidexpansion of Vietnam’s economy has fueled a surging demand for energy, which isprojected to grow at the rate of over 10% annually. To meet this need, theGovernment of Vietnam is encouraging investment from both local and foreignsources in offshore oil and gas exploration and production. It is estimated that aninvestment of about $11 billion will be required for the development of offshoreactivities during the period 2001- 2010.Vietnam is ranked third in the Southeast Asian region and 31st in the world in termsof crude oil and gas output. Among the 50 field structures with proven oil and gasreserves, 20 commercial fields have been developed. In 2005, Vietnam exploitedmore than 20 million tons of crude oil and over 6 billion cubic meters of gas,exporting 19.5 million tons valued at US$6 billion that accounted for 25% ofVietnam’s exports. Vietnam is expected to produce 20 million tons of crude oil and7.5 billion cubic meters of gas in 2006.OilVietnam has 600 million barrels of proven oil reserves. Bach Ho (White Tiger), RangDong (Dawn), Hang Ngoc, Dai Hung (Big Bear), and Su Tu Den (Ruby) are thelargest oil producing fields in the country. Crude oil production averaged 370,000barrels per day in 2005. This year, eight oil fields are expected to produce crude oil atan average volume of 450,000 barrels per day. Vietnam had net exports of 111,000barrels per day of oil in 2005.Vietnam is expected to have produced a cumulative 250 million tons of oilequivalents by 2006, calculating from the very first ton of oil exploited 20 years ago.Of this 250 million equivalent tons, 220 million are crude oil and the remainderconsists of 30 billion cubic meters of natural gas. (One billion cubic meters of gas isequivalent to 1 million tons of crude oil.) For the period to the year 2010,PetroVietnam has targets to explore for 30 to 32 million tons of new oil reserves peryear.
Vietnam is a small exporter on the world oil market, currently supplying about 0.6%of global demand. The United States is named as the biggest importer of Vietnamscrude oil, accounting for 27.9% of the country’s export volume, followed bySingapore with 27%, Japan 22.2%, China 18%, the Netherlands 2.8% and Malaysiawith 2%.GasVietnam has proven gas reserves of 6.8 trillion cubic feet. Besides crude oil, Vietnamalso produces associated and natural gas from several fields. Vietnam’s natural gasproduction and consumption have been rising rapidly since the late 1990s, withfurther increases expected as additional fields come on stream. Natural gas iscurrently produced entirely for domestic consumption. The Cuu Long basin offshorefrom the Mekong Delta in southern Vietnam, a source of associated gas from oilproduction, is the largest Vietnamese natural gas production area.Only two fields in Vietnam have been developed specifically for their natural gaspotential: Tien Hai, with a potential output of 1.76 million cubic feet per day, and LanTay/Lan Do in the Nam Con Son Basin, which began producing over 5 million cubicfeet per day in 2002. In the Nam Con Son Basin, a $565 million, 230-mile pipelinehas been completed connecting the Lan Tay and Lan Do fields to the mainland atVung Tau. The Nam Con Son project consists of five sub sea wells linked to aproduction platform and a pipeline leading to an onshore treatment plant. Gas is pipedto three generating plants at the Phu My industrial complex, where electricity isprovided primarily to areas surrounding Ho Chi Minh City. Output from Nam ConSon has reached 88 billion cubic feet. The project currently supplies the Phu My 1,Phu My 3, Phu My 2.1 power plants and the extended Phu My 2.1 plant. Phu My 2.2will soon begin using output from the field.A consortium headed by KNOC of Korea, signed a 23-year contract withPetroVietnam in 2002 to install facilities to pump and supply 130 million cubic feetper day of natural gas to Vietnam. The natural gas, located in the Rong Doi and RongDoi Tay fields on Block 11-2 of the Nam Con Son Basin, is sold to PetroVietnam,which then resells most of the volume to Electricity of Vietnam (EVN). Production atthe fields began in 2005. In 2004, KNOC and PetroVietnam signed agreements tofurther exploit natural gas in both Blocks 11 and 12. Construction of an additionalpipeline to bring ashore natural gas from block 11 began in 2005, and is scheduled forcompletion in 2006.The Su Tu Den and Rang Dong oil fields, both of which have considerable reserves ofassociated natural gas, are located near the 62-mile pipeline from the Bach Ho field.An estimated 60 million cubic fee per day of gas from the fields is earmarked forconsumption in power plants in southern Vietnam.Both TotalFinaElf and ChevronTexaco have found natural gas in exploratory drillingin the Malay basin. Additionally, Talisman Energy has found natural gas at the CaiNuoc field in block 46. The discovery is close to block PM-3-CAA, which straddlesthe maritime border with Malaysia, and is expected to contain up to 100 billion cubicfeet of recoverable gas reserves.
A contract was awarded to McDermott International in March 2006 for constructionof a 200-mile pipeline, which will transport natural gas from the PM3-CAA block toCa Mau province in southern Vietnam. It is scheduled for completion in 2007.RefineriesAlthough it is a significant oil producer, Vietnam remains reliant on imports ofpetroleum products due to a lack of refining capacity. Most of Vietnam’s crude oil isexported to refiners in the United States, Japan, Singapore, and South Korea.Vietnam is contemplating development of two oil refineries: the Dung Quat refinerywith a planned capacity of 6.5 million tons per year and an estimated total investmentof $1.5 billion, and the Nghi Son refinery with estimated capacity of 7 million tonsand $3 billion in investment. According to many industry experts, the decisions tobuild these two facilities were based largely on political considerations, raisingquestions regarding their commercial viability.Nevertheless, after several years of delays in financing, the construction of the $1.5billion Dung Quat Refinery, located in Quang Ngai province, finally began inNovember 2005. More than $700 million has been invested to date. The refinery isexpected to begin operations in 2009. Vietnam’s distribution infrastructure isdiscontinuous, with the north and south of the country functioning to some extent asseparate markets. Completion of the Dung Quat Refinery, located in the center ofVietnam, is expected to lead to greater interaction between the regions.A second refinery project, with estimated investment of $3 billion, is located at NghiSon, north of Hanoi in the Thanh Hoa province. In August 2004, MitsubishiCorporation agreed to participate in building Nghi Son for completion in 2010.Vietnam has also contracted a feasibility study for a third oil refinery, to be located atVung Ro in the southern province of Phu Yen, close to both currently producing oilfields and the major markets in southern Vietnam. The Vietnamese government hopesto complete the refinery within 12 years. PetroVietnam is proceeding slowly with thedevelopment of the third refinery in light of the other two projects discussed above.Players in the fieldVietnam Oil and Gas Group (www.petrovietnam.com.vn) (also known asPetroVietnam or PV), the national oil and gas monopoly that is monitored byVietnam’s Ministry of Industry on behalf of the Vietnamese government, isempowered to make decisions on strategies, plans and policies for the development ofthe industry, including cooperation with foreign entities, signing petroleum contractsas well as implementing, monitoring, inspecting and supervising petroleum activities.PV has supplied up to 70 percent of services for the domestic oil and gas industry andis also a business partner with foreign companies in the oil and gas sector. Any oiland gas exploration and production activities by foreign entities in Vietnam aresubject to cooperation with PV.Vietnam’s largest oil producer is Vietsovpetro (VSP), a joint venture (JV) betweenPetroVietnam and Zarubezhneft of Russia. VSP operates Vietnam’s largest oil field,Bach Ho. Other foreign partners include ConocoPhillips, BP, Petronas, and TalismanEnergy.
Vietnam’s storage and transportation division, Petrolimex (www.petrolimex.com.vn),recently completed a new oil storage facility in the central Khanh Hoa province. Thedepot is largest in the country, with a total storage capacity of 3.68 million barrels.To date, exploration rights for only 25-30% of the country’s continental shelf withhydrocarbon potential have been awarded. Forty-nine foreign oil and gas companieswith exploration contracts operate under Product Sharing Contracts (PSC), JointOperating Companies (JOC) and Business Co-operation Contracts (BCC), with totalregistered investment capital of more than $7 billion. The remaining offshore areas,generally with water depths of 200 meters or more, are unexplored and open for newbidding.Best Products and ServicesVietnam’s expanding offshore exploration and production has created a steadilygrowing market for offshore oil and gas equipment and services, which is estimated at$1.2 billion in 2006. American equipment and services have captured about 15% ofthe market and this share is expected to expand over the next few years. In the localmarket, American companies are well known as world leaders for advancedtechnologies, quality, and experience in the offshore oil and gas sector. These U.S.firms are currently the most successful in the oil and gas sector in Vietnam.In general, U.S. suppliers of oil and gas equipment and services are quite competitivein the upstream and midstream sub-sectors where advanced technologies andreliability are strict requirements. Sales opportunities are promising in the followingareas:• 3-D Seismic Survey Equipment• Blowout Preventers• Buildings• Chemicals• Computer and Wireless Technologies• Corrosion and Abrasion Control• Cranes, Hoists, and Winches• Deep-Sea Drilling Services• Enhanced Recovery Equipment Services• Fishing Tools• Instruments and Control Systems• Logging and Formation Evaluation• Marine Equipment and Services• Offshore Engineering & Design Services• Offshore Platforms (Fixed and Floating)• Offshore technology licensing• Perforating and Testing Services• Pollution, Oil Spill Control, and Environmental Technologies• Power Supply, Engines, and Turbines• Process Equipment• Production Equipment and Services• Project management services
• Pumps and Compressors• Ropes, Wire Ropes, and Chains• Rubber Products• Software Engineering Services & Equipment• Tools• Tubes and Piping• Valves and Actuators• Wellhead Assemblies• Well-Completion Equipment & ServicesOpportunitiesAmerican companies will find significant opportunities for exporting their equipmentand services to Vietnam in more than 25 ongoing offshore oil and gas exploration andproduction projects, as well as several gas pipeline projects. The number of projectsis likely to increase substantially over the next few years as PV awards new oil andgas blocks to foreign oil and gas companies.ResourcesFor more information, please contact the following addresses or visit the followingwebsites:• Nguyen Dzung, Commercial Specialist U.S. Embassy in Hanoi E-mail: Nguyen.Dzung@mail.doc.gov• Le Son, Commercial Specialist U.S. Consulate General in Ho Chi Minh City E-mail: Le.Son@mail.doc.gov• Vietnam Oil and Gas Group (PetroVietnam) 22 Ngo Quyen Street Hoan Kiem District Hanoi, Vietnam Tel: 84-4-825-2526 Fax: 84-4-826-5942 Website: www.petrovietnam.com.vnThe largest trade show in the oil and gas industry in Vietnam is the Vietnam Oil &Gas Expo. This show is held every two years. Since 1992, Vietnam Oil & Gas expohas been the premier international exhibition with over 8,000 professional visitors ateach event. The upcoming expo will be held from October 12-14 2006, in HCMC;and the next trade show will be held in 2008.