Securing a New Concession, Strengthening the Foundations of Energy Security and Bilateral Cooperation
Expanding Strategic Cooperation with Vietnam, a Geopolitical Hub
Korea National Oil Corporation (KNOC) has successfully secured a new concession stake in Block 15-1, the second-largest oil field in Vietnam.
On June 20, 2025, KNOC held a signing ceremony in Hanoi for the new concession contract for Block 15-1, together with joint partners such as SK Earthon and Petrovietnam, the Vietnamese state oil company.
Kim Dongseop, President of Korea National Oil Corporation (5th from the right), is attending the signing ceremony for the new concession contract of Block 15-1 in Hanoi, Vietnam, on the 20th. Provided by Korea National Oil Corporation
The ceremony was attended by the Deputy Prime Minister and Minister of Foreign Affairs of Vietnam, the Minister of Industry and Trade, and the President of PVN. On the Korean side, the President of KNOC and the Korean Ambassador to Vietnam were among those present.
KNOC first participated in the Block 15-1 project in 1998, succeeded in exploration in 2000, and began production at the Bach Ho oil field in 2003. By 2024, the block had produced a total of 430 million barrels of crude oil and is currently maintaining stable daily production of about 34,000 barrels.
Through its investment in Block 15-1, KNOC has earned approximately $1.4 billion in profits over the past 20 years.
This new contract, signed ahead of the expiration of the existing concession in September 2025, extends the current agreement by 25 years, making it valid until September 2050 as a long-term concession.
With this contract, KNOC has secured an 11.4% stake and long-term rights for additional resource development over the next 25 years. This is expected to generate additional profits through increased reserves, and KNOC's accumulated data and technology will be utilized in future operations.
The acquisition of this new concession is significant not only as an economic achievement but also in terms of resource security and regional strategy. Amid increasing political instability and geopolitical risks in the Middle East, Korea has strengthened the effectiveness of its resource diplomacy by cooperating with Vietnam, a key partner in Asia, to ensure a stable supply of energy resources.
Vietnam, located near the South China Sea, is a strategic hub for energy transportation and is considered a strategic bridgehead for Korea's energy security. This contract is expected to further solidify the trust between the Korean and Vietnamese governments, establish a base for energy cooperation in Southeast Asia, and expand the scope of Korea's energy diplomacy.
KNOC and its joint partners plan to invest $1.3 billion in the White Lion gas field within Block 15-1. Once development is completed, the gas field will supply 125 million cubic feet of natural gas per day to the domestic Vietnamese market, which is expected to make a significant contribution to stable energy supply in Vietnam.
Kim Dongseop, President of KNOC, stated, "This new concession contract for Block 15-1 is the result of strengthening our strategic partnership across the energy, economic, diplomatic, and industrial sectors of both countries. Through this contract, KNOC has established an important milestone in enhancing Korea's resource security and will continue to expand its presence in the Southeast Asian market."
Korea National Oil Corporation President Kim Dongseop is giving a speech at the signing ceremony for the new 15-1 block contract in Hanoi, Vietnam on the 20th. Provided by Korea National Oil Corporation
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