Partners reach accord on offshore southwest Vietnam gas targets
Two subsidiaries of Jadestone Energy have signed a heads of agreement with Petrovietnam.
SINGAPORE – Two subsidiaries of Jadestone Energy have signed a heads of agreement (HOA) with Petrovietnam.
These concern gas sales from the proposed development of theNam Du and U Minh gas fields, which Jadestone operates with a 70% interest, in blocks 46/07 and block 51 offshore southwest Vietnam.
The HOA covers all discovered resources from the fields and establishes a framework for gas sales, priced at the wellhead and delivered to a tie-in point at an existing nearby pipeline.
According to Jadestone, the agreed output will be 80 MMcf/d, with a minimum plateau period of 55 months. In addition, the HOA specifies certain take-or-pay provisions and a pricing formula in principle.
The parties intend to negotiate an initial wellhead price, following the availability later this year of updated cost data for the development. They aim to sanction the project before year-end.
Paul Blakeley, Jadestone’s president and CEO, said: “This will realize a significant portion of the long-term value of the company’s southwest Vietnam assets, delivering growth towards our target of 30,000 boe/d by 2023… with first gas anticipated in late 2021.”
Nam Du and U Minh contain estimated resources of 171.3 bcf of gas and 1.6 MMbbl of liquids, as assessed by consultant ERCE.
Jadestone plans a standalone development, using existing infrastructure which sends the gas to a 1.5-GW onshore power complex, and an adjacent 800,000 metric tons/yr (881,849 tons) fertilizer plant.