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Vietnam’s crude oil extraction estimated to reach 8.1 million tons in 2024

Vietnam’s crude oil extraction for December 2024 is projected to be 671,800 tons, with an estimated total of 8.1 million tons for the entire year, according to Vietnam’s General Office of Statistics. This reflects a year-on-year decrease of 3.8 percent compared to 2023, although the sector’s overall performance remains stable.

Vietnam’s crude oil extraction industry is a key contributor to the national economy, providing revenue, supporting energy security, and driving industrial development. Crude oil production primarily takes place in offshore fields located in the Cuu Long, Nam Con Son, and Malay-Tho Chu basins. PetroVietnam, the state-owned oil and gas company, leads exploration and production activities, often in partnership with international oil companies such as ExxonMobil, Chevron, and Rosneft.

Vietnam’s crude oil is largely exported, with major markets including Japan, South Korea, and China. Domestically, a portion of the crude oil is refined at facilities like the Dung Quat and Nghi Son refineries, which produce fuel and petrochemical products for domestic use. The country’s strategic offshore reserves have supported steady production over the years, although output has gradually declined due to the natural depletion of existing fields.

The sector faces challenges such as declining reserves, high exploration and production costs, and geopolitical tensions in the South China Sea, where many oil fields are located. To counter these issues, Vietnam is focusing on enhancing exploration activities, developing marginal oil fields, and adopting advanced technologies to improve recovery rates. Additionally, efforts are being made to diversify energy sources, with investments in renewable energy and natural gas.

Despite these challenges, crude oil extraction remains a cornerstone of Vietnam’s energy sector and export economy, contributing to the country’s industrial growth and international trade.

See also: Crude Oil Industry in Vietnam

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