Mitsui announces FID on Vietnamese gas project
Japan's Mitsui & Co. March 29 announced that it had reached a final investment decision and signed contracts with its partners for the offshore Block B project in Vietnam.
The project includes an upstream gas field and a pipeline to connect it to a gas-fired thermal power plant complex. The estimated production capacity of the project is 490mn ft3/day, with production scheduled to begin by the end of 2026.
The partners in the project include the Vietnam Oil and Gas Group (PVN), PetroVietnam Exploration Production Corporation (PVEP), PetroVietnam Gas (PV Gas), and PTT Exploration and Production Public Company. Mitsui Oil Exploration Co. (MOECO), a unit of Mitsui & Co., will be responsible for the project.
The Block B project will also include a midstream development for gas transportation. MOECO subsidiaries' share of development costs for the project, which mainly consists of offshore installations and pipeline construction, will be approximately $740mn.
Last year, a consortium formed by McDermott and Petrovietnam Technical Services Corporation secured a contract for the Block B project. The consortium will be responsible for engineering, procurement, construction, installation, as well as hook-up and commissioning services.
Partners in the gas field are PVN (42％) PetroVietnam Exploration Production (27%), MOECO subsidiaries (JVs with JOGMEC) (23%) and PTTEP (8%). Meanwhile, stakeholders in pipeline development project are PV Gas (51%), PVN (29％), MOECO (15%) and PTTEP (5%).