Jadestone seeks approval for Nam Du and U Minh gas project in Vietnam

Jadestone Energy has submitted the field development plan (FDP) for its offshore Nam Du and U Minh gas fields in southwestern Vietnam to Vietnam Oil and Gas Group (Petrovietnam).

The FDP received endorsement from Petrovietnam and needs further approval by the Vietnam Government, which is expected later this year, said the Singaporean oil and gas company.

Prior to the FDP submission, Jadestone Energy had finalized the bidder selection process for the engineering, procurement, and construction contract (EPC contract) for the facilities. The Singaporean oil and gas company selected a floating production storage and offloading vessel provider, and also implemented project plans for the execution phase of the Nam Du and U Minh gas project.

Jadestone Energy also received amended investment licenses for the production sharing contracts of the Nam Du and U Minh gas fields which confirms that it has a 100% interest in the two Vietnamese gas fields located in Block 46/07 and Block 51.

Jadestone seeks approval for Nam Du and U Minh gas project in Vietnam. Image courtesy of falco from Pixabay.

Paul Blakeley, President and CEO commented: “We have made significant strides toward our proposed southwest Vietnam gas development, with all key work streams progressing as intended. This is a major growth project for Jadestone and, with the submission of our field development plan, we now have a clear line of sight toward formal development sanction which is expected to be received later this year.

“In the meantime, our negotiations are progressing well toward finalizing a gas sales and purchase agreement in accordance with the heads of agreement signed with Petrovietnam earlier this year.

“The spirit of cooperation between Jadestone and the Vietnamese government and regulator is strong, and we are working together to swiftly monetize this domestic resource, with targeted first production in late 2021.

“Nam Du and U Minh offer a material volume of gas for both Jadestone and for Vietnam and, once in production, will be used for existing installed power generation and the manufacturing of fertilisers, thereby directly contributing to Vietnam’s ongoing economic growth and development.”

The Nam Du and U Minh gas fields had 171.3 bcf in gross contingent gas resources (2C), as of 31 December 2017. Jadestone Energy said that it plans to begin a reserves audit process which apart from having details of the final gas sales and purchase agreement (GSPA), will determine the 2P reserves it will be eligible to record after the GSPA’s development sanction and execution.