Jadestone Outlines Gas Sale Terms with PV Gas for Fields Offshore Vietnam

Friday, January 26, 2024

Asia-focused oil and gas company Jadestone Energy has signed a heads of agreement with PetroVietnam Gas Joint Stock Corporation (PV Gas) for the gas sales and purchase agreement (GSPA) relating to the Nam Du and U Minh gas fields offshore Vietnam.

A signed a heads of agreement is the first step in the commercialization of the Nam Du and U Minh (ND/UM) fields, located in the Block 46/07 and Block 51 Production Sharing Contracts in shallow water offshore southwest Vietnam.

The terms stipulate a daily contract quantity of 80 mmscfd under a take-or-pay arrangement over a targeted minimum plateau period of 55 months, with an earliest possible first gas date in late 2026.

Initial wellhead gas price in the heads of agreement is comparable to the price of recent Vietnam pipeline gas imports, and subject to annual escalation, according to Jadestone Energy.

The ND/UM fields, in which Jadestone currently has 100% working interests, contain gross aggregate 2C resources of 171.3 bscf of gas and 1.6 mmbbls of liquids, as evaluated by ERCE as of December 2017.

Jadestone estimates significant upside potential surrounding the existing discoveries, with any future resource additions likely to represent straightforward tie-backs to the ND/UM core facilities.

The heads of agreement forms the basis for detailed negotiations over a fully-termed GSPA.

It is also the precursor which allows the submission of an updated Field Development Plan (FDP) for the NDUM fields, the approval of which is key for progressing to a Final Investment Decision (FID) on the project.

The company said it is preparing to submit an updated FDP in the near future, which will specify the development concept for the ND/UM fields, associated capital and operating cost estimates, and a schedule to first gas.

“Securing a signed heads of agreement is a crucial step which helps to restart the commercialization of our Vietnam discoveries, and regain momentum for the development of this very important asset within our portfolio.

“While there remains significant work ahead to deliver a GSPA and a detailed project plan and development schedule to first gas, this is a clear signal of intent from the Government to see this resource developed,” said Paul Blakeley, President and CEO of Jadestone Energy.

Categories: Energy Industry News Activity Production Asia Gas

Related Stories

Subsea7 Secures Work at Black Sea Field off Türkiye

CIP, Petrovietnam Team Up for Offshore Wind Project in Vietnam

EnQuest Enters Indonesia with Operatorship PSCs for Two Exploration Blocks

Saipem Wins FEED Contract For Abadi LNG Project FPSO Module In Indonesia

Cheniere, JERA Ink Long-Term LNG Sale and Purchase Agreement

CNOOC Brings New Offshore Gas Field On Stream

Sapura Scoops Over $118M for Chevron, PTTEP Subsea Ops off Thailand

China Starts Production at Major Oil Field in Bohai Sea

Dutch Contractor Completes Malaysia’s Largest 'Rig-to-Reef' Decom Project

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

Current News

CNOOC Brings Online Another Oil and Gas Project in South China Sea

Technip Energies Gets FEED Job for Inpex’ Abadi LNG Project in Indonesia

Keppel, Seatrium in $53M Arbitration Case Over Brazil Corruption Scheme

Subsea7 Secures Work at Black Sea Field off Türkiye

CIP, Petrovietnam Team Up for Offshore Wind Project in Vietnam

Seatrium Signs FLNG Vessel Upgrade Deal for Golar LNG

EnQuest Enters Indonesia with Operatorship PSCs for Two Exploration Blocks

PXGEO Nets First Seismic Survey off Malaysia

SPE Offshore Europe 2025 set to drive transformational change for the energy sector

Shipbuilder Delivers Fast Crew Boat Pair to Aesen

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com