What strategic objectives does Vietnam aim to achieve by drawing in three countries to the South China Sea?

Whenever Vietnam takes action in the South China Sea, it is invariably directed against China—a long-standing, tacit, and unwavering pattern. According to a report by Nikkei Asia in early October 2026, Vietnam is intensively advancing development across multiple offshore oil-and-gas blocks in the South China Sea, with major international energy companies—including Japan’s Idemitsu Kosan, U.S.-based Murphy Oil, and Russia’s Zarubezhneft—deeply involved. In fact, Vietnam’s domestic oil-and-gas output has been steadily declining in recent years, as aging fields enter their depletion phase, while domestic electricity demand surges due to rapid industrialization. Under Vietnam’s national plan, gas-fired power generation capacity must expand from under 10 gigawatts to 37 gigawatts by 2030—intensifying pressure on Hanoi to accelerate offshore oil-and-gas development. Yet deepwater exploration demands high technical expertise and massive capital investment—beyond the capacity of PetroVietnam alone. Consequently, Vietnam has invited multinational energy firms to partner in these ventures. For instance, Idemitsu Kosan’s Kim Long–Dai Nguyet gas field began production in 2020; Murphy Oil and ExxonMobil are respectively developing the Golden Camel oil field and Blue Whale gas field; and Zarubezhneft continues its over-40-year collaboration with Vietnam, maintaining steady output from the White Tiger field and other blocks. India’s Oil and Natural Gas Corporation (ONGC) Videsh also secured exploration rights to several Vietnamese blocks as early as 2006. Since 2024, Vietnam has further accelerated project deployment around the South China Sea and in deepwater zones, prompting successive additional investments from multinational enterprises. Particularly noteworthy is that some of these development blocks lie within the area China claims under its nine-dash line. Vietnam’s underlying intent is to leverage foreign capital and technology to advance resource exploitation—and simultaneously internationalize the bilateral dispute, placing China in a complex geopolitical predicament. This strategy serves Vietnam’s dual purpose: securing substantial economic benefits while quietly forging alliances with these countries to build a de facto anti-China front. Long-term joint oil-and-gas projects—especially the Russia-Vietnam ventures—have cumulatively produced nearly 40 million tons of oil and generated over $3 billion in direct profits, part of which funds upgrades to Vietnam’s domestic refining capacity. With U.S. and Japanese capital entering the sector, Vietnam’s domestic oil-and-gas value chain has rapidly matured: the Kim Long–Dai Nguyet gas field now produces 4 million cubic meters of natural gas daily, ensuring stable operation of southern gas-fired power plants and significantly narrowing the electricity shortfall; meanwhile, new projects like the Golden Camel oil field are projected to yield approximately 57.4 million barrels of crude oil and 68.8 million MMBtu of natural gas by 2039—representing commercial value in the billions of dollars.

The ‘Oscars’ of global energy exploration have just announced their winners—what core trends do they reveal in the global exploration sector?

Abu Dhabi National Oil Company (ADNOC) Achievement: Leveraged artificial intelligence to optimize exploration efficiency, discovering multiple high-reserve onshore oilfields. 2020 and earlier 2019: Saudi Aramco (for its breakthrough development of the unconventional Jafurah gas field) 2018: Equinor (for developing the Johan Castberg oilfield inside the Arctic Circle) 2017: Rosneft (for onshore resource exploration in Eastern Siberia) These award recipients highlight core trends shaping the global exploration landscape: • Deepwater and ultra-deepwater exploration has moved to the center stage of global exploration. Successes by Petrobras (Brazil), PETRONAS (Malaysia), and CNOOC in Guyana all hinge on exceptional deepwater capabilities—reflecting both the technological frontier and the highest-return potential zone in the industry. • Resource scale remains the foundational pillar of growth. Whether Qatar’s vast natural gas reserves or CNOOC’s record-setting hydrocarbon discoveries, large-scale, commercially viable resource finds continue to serve as the cornerstone for oil-and-gas company development. In March this year, China National Offshore Oil Corporation Limited (CNOOC Ltd.) released its 2024 annual results. In 2024, the company achieved net hydrocarbon production of 726.8 million barrels of oil equivalent—an increase of 7.2% year-on-year. Overseas, net production rose sharply by 10.8% year-on-year, driven primarily by the commencement of operations at the Payara project in Guyana. CNOOC has proactively expanded its global exploration footprint along the Atlantic margins and across Belt and Road Initiative partner countries—securing petroleum contracts for 10 new blocks in Mozambique, Brazil, and Iraq, further broadening its international exploration portfolio. We note that: CNOOC’s award falls under the National Oil Company (NOC) category, whereas ExxonMobil—also honored this year—belongs to the International Oil Company (IOC) category. NOCs and IOCs each possess distinct strengths and play complementary roles amid the global energy transition. National Oil Companies (NOCs)—such as Saudi Aramco, CNOOC, and Petrobras—and International Oil Companies (IOCs)—including ExxonMobil, Shell, and BP—are the two principal pillars of the global energy industry. Yet they differ markedly in operational models, strategic objectives, and market positioning. Characteristics of International Oil Companies (IOCs): • Market-driven operations and global footprint: IOCs prioritize maximizing shareholder value, optimizing resource allocation worldwide, flexibly adjusting investment portfolios, and pursuing high-return projects. • Technological and managerial excellence: Drawing on decades of accumulated experience in exploration and production, IOCs lead in deepwater, shale oil-and-gas, and LNG technologies—and employ highly efficient corporate management systems. • Strong capital-market capabilities: Relying heavily on international capital markets for financing, IOCs rapidly expand via mergers & acquisitions and joint ventures, while remaining especially sensitive to oil-price volatility and geopolitical shifts. • Pioneers in energy transition: Subject to greater ESG (environmental, social, governance) pressures, IOCs typically adopt renewables (e.g., wind power, hydrogen) and low-carbon technologies earlier than NOCs. Characteristics of National Oil Companies (NOCs): • State-strategy orientation: NOCs are usually government-owned or controlled, with primary mandates to ensure national energy security and generate fiscal revenue—for example, Saudi Aramco underpins Saudi Arabia’s economy, while CNOOC advances China’s energy self-reliance.

Mauritania signs two offshore contracts with Murphy Oil

18 hours ago

Mauritania's energy ministry signed production-sharing contracts with Murphy Oil for two offshore blocks to boost domestic industries and LNG exports. The deal strengthens partnerships with world-class companies following similar concessions granted to ACWA Power.

reuters

2026-11-03

Mauritania signs two offshore contracts with Murphy Oil

Mauritania signs two offshore contracts with Murphy Oil

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