Vietcombank lends Petrovietnam 1.03 billion USD to implement Block B

The signing ceremony took place in the presence of Deputy Prime Minister Ho Duc Phoc; Minister of Finance Nguyen Van Thang; Governor of the State Bank of Vietnam Nguyen Thi Hong, along with leaders of many relevant ministries and branches, senior leaders of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and the Vietnam National Industry and Energy Group (Petrovietnam), affirming the strategic significance of the credit contract.

Vietcombank is the bank providing medium and long-term credit to Petrovietnam to implement two upstream and midstream projects of the Block B - O Mon Gas Power Project Chain.

According to the Contract, Vietcombank is the bank providing medium and long-term credit to Petrovietnam to implement two upstream and midstream projects of the Block B - O Mon Gas Power Project Chain.

This is also one of the largest credit contracts in the energy industry, for the largest-ever gas project in Vietnam, affirming the pioneering role in arranging capital for key national projects.

Previously, in March 2024, the two parties signed a credit arrangement framework contract for the entire Project Chain, creating a solid foundation for this contract.

The process of arranging capital for these projects has received timely and close guidance and support from the Government Office, the State Bank of Vietnam and the Ministry of Finance.

The Block B - O Mon gas - power project chain includes 3 components: the Gas exploitation development project at Block B & 48/95 and Block 52/97 in the upstream; the Block B - O Mon gas pipeline project in the midstream and 04 O Mon thermal power plant projects in the downstream with an investment capital of more than 12 billion USD.

Gas from Block B is expected to provide a stable and long-term supply for the gas power plant cluster in the Mekong Delta, contributing to reducing dependence on fuel imports, increasing autonomy and operational flexibility of Vietnam's national power system, in line with the orientation of Power Plan VIII (adjusted), realizing the commitments of the Vietnamese Government on energy transition and emission reduction in the spirit of COP26.

The Block B - O Mon gas - power project chain is large-scale, requiring advanced technology, finance, management, cost, quality and technical, commercial - financial coordination at a very high and integrated level.

In the context of increasingly difficult arrangements for foreign loans for oil and gas projects related to fossil energy as most international financial institutions and foreign banks have stopped/limited credit financing for oil and gas projects, the strategic cooperation between two leading financial - industrial and energy enterprises of the country is extremely important to successfully arrange loans for Petrovietnam's oil and gas projects.

The process of arranging capital for these projects has received timely and close guidance and support from the Government Office, the State Bank of Vietnam and the Ministry of Finance.

Mr. Le Manh Hung, Chairman of the Board of Directors of Petrovietnam, emphasized that the Block B - O Mon gas-power project chain is a strategic project of the oil and gas industry and national energy security. With the support of Vietcombank, the project will be implemented effectively, making an important contribution to socio-economic development.

Petrovietnam leaders believe that with timely financial resources, a smooth coordination mechanism between state management agencies, banks and localities, and the support of Vietcombank and partners, the Block B - O Mon project chain will be implemented on schedule, bringing gas ashore soon, providing fuel for power plants in the Mekong Delta; making an important contribution to ensuring energy security, improving national competitiveness, contributing to the country's industrial - energy and green growth.

On Vietcombank’s side, Chairman of the Board of Directors Nguyen Thanh Tung also committed to providing optimal financial solutions, accompanying Petrovietnam in successfully implementing the Block B - O Mon Project Chain. This is not only a contribution to energy security, but also a responsibility to support the country’s sustainable development aspirations.

During 27 years of cooperation, Vietcombank and Petrovietnam have implemented many large projects, spanning many fields and member units. Since 2022, when the two sides signed a comprehensive cooperation agreement, the relationship has been raised to a new level.

Appreciating Vietcombank's efforts in arranging large capital sources for the project chain in the context of the volatile international foreign exchange market, Ms. Nguyen Thi Hong, Governor of the State Bank of Vietnam, requested Vietcombank to seriously implement the State Bank's instructions on foreign currency balance, risk management and disbursement in accordance with the loan contract signed today.

At the same time, the Governor also requested Petrovietnam to fully implement its commitments and current legal regulations in using Vietcombank's loans for the right purposes, safely and effectively.

Deputy Prime Minister Ho Duc Phoc spoke at the signing ceremony.

Congratulating Vietcombank and Petrovietnam on signing a credit contract to implement projects with a very large total investment, contributing to the implementation of Resolution No. 70-NQ/TW, dated August 20, 2025 of the Politburo on ensuring national energy security until 2030, with a vision to 2045, Deputy Prime Minister Ho Duc Phoc also emphasized that this is not only the common joy of the two enterprises but also the common joy of the Party, the Government and the people in investing in large economic projects, creating spillover, maintaining national energy security, contributing to developing the country to new heights.

Praising Vietcombank and Petrovietnam for their great contributions to the country's socio-economic development in the recent period, the Deputy Prime Minister hoped that in the coming time, enterprises will continue to promote the spirit of innovation, promote the application of science and technology, invest in production and do business effectively to promote the country's development.

At the same time, Petrovietnam is requested to coordinate and cooperate closely with partners; carry out the exploitation and construction of gas supply pipelines, ensuring safety, progress, quality and efficiency of the project.

The success of these credit contracts is not only financially significant, but also affirms the determination of two key economic groups in making practical contributions to socio-economic development, strengthening energy security and creating momentum for the country's sustainable growth.

I. Block B, 48/95 and 52/97 (hereinafter referred to as Block B) are located in the offshore area of Southwest Vietnam, in the Malay - Tho Chu Basin depression of Vietnam's continental shelf, about 300 km from the coast of Ca Mau, about 400 km from O Mon Power Center, with a sea depth of about 77 meters.
The investment scale of the Block B Gas Exploitation Project is estimated at 6.6 billion USD. Petrovietnam is the Contract Operator with a total participation in the two Petroleum Product Sharing Contracts (PSC, Block B&48/95 and Block 52/97) of about 42.9%.
Another member unit of Petrovietnam, PVEP, participates in contributing capital with 27%.
The two foreign investors in this project are Mitsui Oil Exploration Co., Ltd. (MOECO) - a subsidiary of Japanese group Mitsui & Co., Ltd and PTTEP (Thailand) contributing capital with 22.4% and 7.7% respectively.

II. The Block B - O Mon gas pipeline project has a total length of more than 430 km, of which about 102 km of the onshore pipeline passes through three provinces and cities, with the section through An Giang province being the longest (about 70 km).
The total investment value of the Block B - O Mon gas pipeline project is estimated at 1.2 billion USD and is invested by 04 investors: Vietnam Gas Corporation (stock code GAS) (51%), Petrovietnam (29%), MOECO and PTTEP (20%).
The operator of the Block B - O Mon gas pipeline is the Southwest Pipeline Operating Company (SWPOC) - a subsidiary of Petrovietnam.
During the stabilization period, Block B will provide power plants with about 5.06 billion m3 of gas each year to produce about 22 billion kWh of electricity, partially meeting the energy demand for Vietnam's economic development in the coming time.

III. O Mon Power Center has 4 Projects.
- O Mon I Thermal Power Plant with a capacity of 660 MW under EVN GENCO2 is being converted to use Block B gas.
- The O Mon II Power Plant Project, with a capacity of 1,050 MW, invested by Marubeni Corporation and Construction Trading Joint Stock Corporation (WTO), signed a Framework Agreement on Gas Sales Contract with Petrovietnam in February 2023.
- O Mon III Thermal Power Plant project is currently invested by Petrovietnam, with a capacity of 1,050 MW.
- The O Mon IV Thermal Power Plant project is also currently invested by Petrovietnam using combined cycle gas turbine technology, with a capacity of about 1,050 MW.