Asia Pacific-focused Jadestone Power has signed a heads of settlement (HoA) with PetroVietnam Fuel Joint Inventory Company (PV Fuel) for the Nam Du and U Minh (NDUM) gasoline fields growth in shallow water offshore southwest Vietnam.
The HoA is step one within the commercialization of the belongings and will doubtlessly result in a gasoline gross sales and buy settlement (GSPA) for the NDUM fields underneath the Block 46/07 and Block 51 manufacturing sharing contracts (PSCs), Jadestone stated in a information launch Monday. The HoA varieties the idea for detailed negotiations over a totally termed GSPA and can also be the precursor that enables the submission of an up to date subject growth plan (FDP) for the NDUM fields, Jadestone stated.
The HoA stipulates a each day contract amount of 80 million commonplace cubic ft per day (MMscfpd) underneath a take-or-pay association over a focused minimal plateau interval of 55 months, with an earliest potential first gasoline date of late 2026. The preliminary wellhead gasoline value within the HoA is akin to the value of latest Vietnam pipeline gasoline imports, and is topic to annual escalation, in line with the discharge.
- Advertisement -
The NDUM belongings, that are 100% owned by Jadestone, include gross mixture 2C sources of 171.3 billion commonplace cubic ft of gasoline and 1.6 million barrels of liquids, in line with an analysis by ERCE in December 2017. Jadestone stated it “estimates vital upside potential surrounding the present discoveries, with any future useful resource additions prone to symbolize simple tie-backs to the NDUM core amenities”.
Jadestone stated it’s presently getting ready to submit an up to date FDP within the close to future, which is able to specify the event idea for the NDUM fields, related capital and working value estimates, and a schedule for first gasoline manufacturing. The approval of the FDP will probably be key to progressing to a ultimate funding choice for the undertaking, the corporate famous.
“Securing a signed Heads of Settlement is an important step which helps to restart the commercialisation of our Vietnam discoveries, and regain momentum for the event of this essential asset inside our portfolio”, Jadestone President and CEO Paul Blakeley stated. “Whereas there stays vital work forward to ship a GSPA and an in depth undertaking plan and growth schedule to first gasoline, it is a clear sign of intent from the Authorities to see this useful resource developed. The Nam Du and U Minh gasoline fields would ship vital medium-term manufacturing development for Jadestone, additional diversifying our asset base and growing our gasoline volumes whereas reducing our GHG emissions depth – all key parts of our strategic purpose to be a number one Asia-Pacific upstream firm”.
“The doubtless timing of FID at Nam Du/U Minh would end in capital expenditure occurring no sooner than mid-2025, thereby supporting an natural funding answer via Jadestone’s money stream technology, out there debt and the added potential of bringing in companions throughout the growth part”, Blakely continued.
“Nam Du/U Minh manufacturing may also assist cut back Vietnam’s reliance on costly gasoline imports, which have the next GHG [greenhouse gas] emissions depth than home gasoline. It will additionally contribute to the nation’s vitality transition and acknowledged purpose of Internet Zero greenhouse gasoline emissions by 2050, in addition to creating native jobs and financial advantages”, Blakely concluded.
Singapore-based Jadestone Power describes itself as an unbiased oil and gasoline firm targeted on the Asia-Pacific area. The corporate has a balanced and more and more diversified portfolio of manufacturing and growth belongings in Australia, Malaysia, Indonesia, Thailand and Vietnam.
To contact the creator, electronic mail rocky.teodoro@rigzone.com
