US company strikes oil in Vietnam waters, possible estimate of over 430 million barrels

Murphy Oil, a U.S. fossil fuel company, released an estimate of its latest find off Vietnam's southern shore that could wind up as Asean's largest oil discovery in 20 years.

According to Nikkei, citing energy consultancy Wood Mackenzie, an appraisal well was drilled by a subsidiary of Murphy's in the Hai Su Vang oil field, located in the Cuu Long Basin near Ho Chi Minh City.

The previous estimate was 170 to 430 million barrels of oil equivalent (MMBOE).

The updated midpoint estimate is to the high end of this, while the high end of the new range exceeds 430 MMBOE.

"Additionally, results from the shallow reservoir provide recoverable resource upside not included in the previously communicated range," Murphy said.

The find could reverse a trend for Vietnam that saw it go from a net crude oil exporter to a net importer in 2017, as industrialisation and refinery capacity increased.

Vietnam aims to achieve industrialised country status by 2045.

The country's oil output fell from 365,000 barrels per day in 2005 to below 120,000 barrels per day in 2025, Wood Mackenzie noted.

The previous big oil finds in Southeast Asia were Banyu Urip in Indonesia in 2001, and Gumusut in Malaysia in 2003.

Top image from Pixabay.