Oil and Gas Equipment and Services

Vietnam

Overview                                                                                            

 

                                                  2005(actual)             2006(estimated)            2007(estimated)

Total Market Size                           1,025                          1,160                            1,350

Total Local Production                       475                             555                              650

Total Exports                                       0                                 0         

Total Imports                                     550                             605                              700

Imports from the U.S.                        160                             175                              200

 The above statistics are in $ millions and are unofficial estimates.

 

Vietnam’s oil and gas industry is currently the country's biggest foreign currency earner and a major procurer of imported technology.  Since the first export shipment in April 1987, crude oil has earned over $17 billion for Vietnam’s economy. The oil and gas industry contributes 1 billion USD to Vietnam’s State budget every year. The rapid expansion of Vietnam’s economy has fueled a surging demand for energy, which is projected to grow at the rate of over 10% annually.  To meet this need, the Government of Vietnam is encouraging investment from both domestic and foreign sources in offshore oil and gas exploration and production.  It is estimated that an investment of about $11 billion will be required for the development of offshore activities during the period 2001- 2010.

 

Vietnam is ranked third in the Southeast Asian region and 31st in the world in terms of crude oil and gas output. Among the 50 field structures that proven oil and gas reserves, 20 commercial fields have been developed. In 2005, Vietnam exploited more than 20 million tons of crude oil and over 6 billion m3 gas, exported 19.5 million tons valued at $6 billion that accounted for 25% of Vietnam’s exports.  It is forecasted that in 2006 Vietnam will exploit 20 million tons of crude oil and 7.5 billion m3 gas.

 

Best Prospects/Services

 

Vietnam’s expanding offshore exploration and production has created a steadily growing market for offshore oil and gas equipment and services, which is estimated at $1.2 billion in 2006.  American equipment and services have captured about 15% of the market and this share is expected to expand over the next few years.  In the local market, American companies are well-known as the world leaders for advanced technologies, quality, and in-depth experience in the offshore oil and gas sector.  U.S. firms are currently the most successful in the oil and gas sector in the country.

 

In general, U.S. suppliers of oil and gas equipment and services are quite competitive in the upstream and midstream sub-sectors where advanced technologies and reliability are strict requirements.  Sales opportunities are promising in the following areas:

 

·           3-D Seismic Survey Equipment

·            Blowout Preventers

·            Buildings

·            Chemicals

·            Computer and Wireless Technologies

·            Corrosion and Abrasion Control

·           Cranes, Hoists, and Winches

·           Deep-Sea Drilling Services

·            Enhanced Recovery Equipment Services

·           Fishing Tools

·            Instruments and Control Systems

·           Logging and Formation Evaluation

·           Marine Equipment and Services

·            Offshore Engineering & Design Services

·            Offshore Platforms (Fixed and Floating)

·            Offshore technology licensing

·            Perforating and Testing Services

·            Pollution, Oil Spill Control, and Environmental

·           Power Supply, Engines, and Turbines

·           Process Equipment

·            Production Equipment and Services

·           Project management services

·           Pumps and Compressors

·           Ropes, Wire Ropes, and Chains

·           Rubber Products

·            Software Engineering Services &  Equipment

·           Tools

·            Tubulars and Piping

·           Valves and Actuators

·            Wellhead Assemblies

Well-Completion Equipment & Services

 

Opportunities          

 

American companies will find significant opportunities for exporting their equipment and services to Vietnam in more than 25 ongoing offshore oil and gas exploration and production projects, as well as several gas pipeline projects.  The number of projects is likely to increase substantially over the next few years as PV awards new oil and gas blocks to foreign oil and gas companies.

 

Resources                                    

For more information, please contact the following addresses or visit the following websites:

 

·           Nguyen Dzung, Commercial Specialist

U.S. Embassy in Hanoi

E-mail: Nguyen.Dzung@N0SPAM.mail.doc.gov

 

·           Le Son, Commercial Specialist

U.S. Consulate General in Ho Chi Minh City

E-mail: Le.Son@N0SPAM.mail.doc.gov

 

·            Vietnam Oil and Gas Group (PetroVietnam)

            22 Ngo Quyen Street

            Hoan Kiem District, Hanoi, Vietnam

Tel: 84-4-825-2526

Fax: 84-4-826-5942

 

U.S. Commercial Service: www.buyusa.gov/vietnam

 

PetroVietnam: www.petrovietnam.com.vn

 

Petrolimex: www.petrolimex.com.vn

 

(Note: The largest trade show in the oil and gas industry in Vietnam is the Vietnam Oil & Gas Expo.  This show is held every two years.  Since 1992, Vietnam Oil & Gas expo has been the premier international exhibition with over 8,000 professional visitors at each event.  The last expo, held from October 12-14 2006, in HCMC. The next trade show will be held in 2008).