Vietnam’s domestic crude oil production is expected to decline this decade, according to a government document released this week,  increasing the country’s reliance on imports as its offshore fields mature and geopolitical tensions threaten global supplies.

Vietnam’s trade ministry has called on local businesses to encourage their employees to work ​from home as part of efforts to save ‌on fuel amid supply disruptions and price surges triggered by the Iran war.

Fuel prices in Vietnam jumped sharply on March 7 as the escalating conflict between the U.S., Israel and Iran sent global oil markets into turmoil and nearly shut down the world’s most critical oil shipping route.

In the adjustment, the ministries decided not to use the petrol and oil price stabilisation fund for any of the fuel categories.

Liquefied petroleum gas (LPG) supplies to Vietnam have been disrupted as escalating conflict in the Middle East has prevented PV Gas Trading from securing additional cargoes, prompting the major importer to urge customers to seek alternative sources.

Vietnam has identified a high-potential offshore oil discovery at the Hai Su Vang field, about 65 kilometers off its southern coast, a move that could strengthen domestic energy supply and offshore exploration efforts.

A group of investors in Vietnam’s gas-fired power sector has urged the country’s parliament to address regulatory gaps that have stalled multi-billion-dollar LNG and domestic gas-fueled power projects, warning that delays could derail the country’s energy transition targets.

Vietnamese officials confirmed that there was a devastating fire at the Song Doc offshore oil platform on Wednesday. The platform is the country’s first decommissioning project. 

Vietnamese state energy group PetroVietnam (PVN) on Monday reported its achievements in 2023, including two new oil and gas discoveries, to Prime Minister Pham Minh Chinh.

Vietnam expects further years-long delays before offshore blocks being developed by U.S. major Exxon Mobil and Russia’s Gazprom will be producing gas, according to a draft government document seen by Reuters.