Oil and gas, energy cooperation strengthens Vietnam–Algeria friendship

A corner of the operations centre of the Bir Seba field. (Photo: VNA)

Vietnam and Algeria established their diplomatic relations shortly after Algeria gained independence. However, the substantive relationship began as early as 1958, when Vietnam was among the first countries in the world to recognise the Provisional Government of the Algerian Republic.

Throughout their struggles for independence, the two peoples shared many values and experiences, forming the foundation of a strong and enduring friendship. After more than 60 years, the bilateral relations have continued to expand and strengthen through cooperation across multiple fields, including politics, economy, and culture.

Algeria’s economy is primarily based on oil and gas production, which accounts for nearly 30% of GDP, over 30% of tax revenue, and around 90% of export turnover. On the global market, Algeria is a significant energy producer and exporter, ranking 5th in natural gas production and 2nd in natural gas exports, as well as 13th in oil production and 9th in oil export.

The most significant milestone in energy cooperation between Vietnam and Algeria is the participation of Petrovietnam Exploration Production Corporation (PVEP) - a unit of the Vietnam National Industry-Engery Group (Petrovietnam), in Algeria through the Blocks 433a & 416b – Bir Seba Field project in the Hassi Messaoud area of Ouargla province, over 600 km south of Algiers capital city. This is one of Petrovietnam’s most successful overseas oil and gas projects, showcasing the management, operational, and production organisation capabilities of Vietnamese engineers on the international stage.

Since commencing operations in August 2015, the Bir Seba project has maintained stable and safe production, reaching a milestone of 50 million barrels of oil by 2023. Currently, the project has surpassed 60 million barrels of safely extracted oil without any serious accidents, earning high praise from partner Sonatrach and supervision authorities for its operational capacity and risk management.

The success of this project stands as a clear testament to the strategic cooperation between the two countries, while also enhancing the international reputation of Vietnamese enterprises in the oil and gas sector. PVEP’s participation in exploration and production projects in Algeria helps Vietnam diversify its crude oil supply, providing vital financial resources for both Petrovietnam and the national budget. The oil and gas project in Algeria represents one of Vietnam’s largest overseas energy investments. This not only expands Petrovietnam’s international presence but also lays the groundwork for Vietnamese enterprises to broaden collaboration into other sectors such as construction, technical services, logistics, and trade.

Over more than 20 years of operation, hundreds of Petrovietnam experts, engineers, and workers have been involved in field operations, engineering design, and project management, contributing to the professional and responsible image of Vietnamese personnel in Algeria. It can be affirmed that energy cooperation—particularly in oil and gas — has become an effective bridge, enhancing high-level exchanges, delegation visits, and expanding investment negotiations between the two countries.

Building on the strong foundation of existing cooperation, Vietnam and Algeria are aiming to expand collaboration across multiple energy-related sectors. Petrovietnam/PVEP has promoted exchanges to explore new oil and gas blocks while accelerating Phase II of the Bir Seba project. The two governments also regularly hold high-level meetings and continue to commit to facilitating conditions for enterprises from both countries to implement energy projects.

Amidst the global energy transition, the cooperation in oil and gas holds even greater strategic significance. The Bir Seba project continues to serve as a symbol of effective collaboration while opening substantial opportunities for the two countries to expand into new areas such as renewable energy, oil and gas technical services, and workforce training.

With a foundation of over 60 years of traditional friendship and strong political commitment from both sides, Vietnam–Algeria energy cooperation is poised to enter a new stage of development which is more substantive and comprehensive, thus making a positive contribution to energy security and economic growth in both countries./.

VNA

Source: https://en.vietnamplus.vn/oil-and-gas-energy-cooperation-strengthens-vietnamalgeria-friendship-post333249.vnp