Jadestone Energy has signed a gas sales and purchase agreement with PV Gas, a subsidiary of state-owned Petrovietnam, for the supply of gas from the Nam Du and U Minh discoveries offshore Vietnam.
The agreement sets out terms for gas sales, with production targeted to begin in late 2028 under an approved field development plan.
Under the deal, daily contract quantities are set at 80 million standard cubic feet per day, equivalent to about 13,000 barrels of oil equivalent per day on a gross basis, with a maximum level of 110% and a take-or-pay threshold of 90%.
“The execution of this agreement is a pivotal moment for Jadestone. After years of dedicated effort, we are now in a position to deliver the Nam Du/U Minh development, which will materially strengthen our portfolio while supporting our growth ambitions.
“With all key commercial and technical approvals now in place, and recent key hires into the Jadestone Vietnam project delivery team, we are now focused on rapidly progressing towards the project execution phase,” said T. Mitch Little, Chief Executive of Jadestone Energy.
The company added the agreement includes pricing terms comparable to historical Vietnam gas imports, with fixed annual escalation.
The Nam Du and U Minh fields are located in shallow waters offshore southwest Vietnam and contain independently audited gross 2P reserves of 32 million barrels of oil equivalent.
Jadestone said the wider license area could hold up to 1.5 trillion cubic feet of unrisked gas in place, offering potential to extend or increase production beyond the initial development.
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