Vietcombank, Petrovietnam sign over US$1 billion credit deal for Block B – Ô Môn gas project

Vietcombank, Petrovietnam sign over US$1 billion credit deal for Block B – Ô Môn gas project

This is among the largest credit packages ever arranged in Việt Nam’s energy sector, supporting the country’s biggest gas project to date.

Nguyễn Việt Cường, deputy general director of Vietcombank, and Dương Mạnh Sơn, deputy general director of Petrovietnam, represent the two sides in signing the credit agreements witnessed by Government leaders, central ministries, and senior executives of both organisations. — Photo courtesy of Vietcombank

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and the Vietnam National Industry and Energy Group (PetroVietnam) on Tuesday signed two credit agreements worth more than US$1 billion to finance the Block B&48/95 and Block 52/97 Gas Field Development and the Block B – Ô Môn Gas Pipeline projects.

This is among the largest credit packages ever arranged in Việt Nam’s energy sector, supporting the country’s biggest gas project to date. The signing underscores Vietcombank’s leading role in financing national key projects and Petrovietnam’s proactive efforts to mobilise domestic capital for strategic energy development.

The partnership comes at a time when international financing for oil and gas projects is increasingly constrained, as many global institutions have tightened or halted credit support for fossil fuel-related activities. In this context, the cooperation between Vietcombank and Petrovietnam – two leading corporations in finance and energy – plays a crucial role in ensuring funding for major oil and gas ventures. The process has received close guidance and timely support from the Government Office, the State Bank of Vietnam (SBV), and the Ministry of Finance.

Under the agreements, Vietcombank will provide medium- and long-term loans to Petrovietnam for upstream and midstream components of the Block B – Ô Môn Gas-to-Power Chain. Earlier, in March 2024, the two sides signed a framework agreement on arranging syndicated loans for the entire project chain, paving the way for this signing.

The Block B&48/95 and Block 52/97 Gas Field Development and the Block B – Ô Môn Gas Pipeline projects are expected to supply stable gas for power plants in the Mekong Delta, reduce dependence on imports, and strengthen national energy security. The projects also contribute to the goals set out in the adjusted Power Development Plan VIII and Việt Nam’s commitments to energy transition and emission reduction under COP26.

The signing ceremony was attended by Deputy Prime Minister Hồ Đức Phớc, SBV Governor Nguyễn Thị Hồng, and senior leaders of both organisations, including Vietcombank Chairman Nguyễn Thanh Tùng and Petrovietnam Chairman Lê Mạnh Hùng. 

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