Chevron, ExxonMobil Secure Potential Crude Supply Deals with Vietnam
Agreements with state-owned PVN could open new market avenues for major Bakken operators.
Chevron and ExxonMobil have separately agreed to potential crude oil supply deals with Vietnam, according to reports from Rigzone. The agreements with state-owned PetroVietnam (PVN) were announced on Monday, September 28.
For Chevron, the agreement could also secure supplies of liquefied natural gas (LNG) and liquefied petroleum gas (LPG) for Vietnam, Rigzone reported. The details of the crude supply volumes and terms were not disclosed.
While the specific sourcing for the crude was not specified in the reports, such international supply agreements are significant for integrated majors like Chevron and ExxonMobil that operate in the Bakken formation. Both companies hold substantial acreage and production in North Dakota's Williston Basin.
The development highlights the global market reach of the Bakken's largest operators. Securing offtake agreements in growing Asian economies like Vietnam provides a potential outlet for crude produced in the region. This aligns with the industry's broader strategy of diversifying market access beyond domestic refineries.
For Bakken-focused producers, the activities of these supermajors can influence regional midstream logistics and pricing benchmarks. New long-term supply contracts can support the economic case for continued development and investment in the play.
The news comes as the global oil market continues to seek stable supply routes. Vietnam's growing economy is increasing its demand for energy imports, creating opportunities for producers with the scale and logistics to meet it.
Source
Rigzone