Exxon Awards Saipem Vietnam Feed

US major ExxonMobil has awarded Italian Saipem the contract for front-end engineering and design for the Blue Whale (Ca Voi Xanh field) project in Vietnam, Saipem said January 30. ExxonMobil said separately it is filing appropriate permits, planning applications and other preparatory work for the proposed development.

The field, offshore in block 118, is the country's biggest. The proposed project consists of an offshore platform, a pipeline to transport the gas to shore, an onshore gas treatment plant and condensate offloading facility and pipelines that feed gas to two third-party power plants to generate electricity locally.

“The Ca Voi Xanh project could bring a number of long-term benefits to the country, including cleaner, reliable power to help drive economic growth and improved living standards,” said the president of ExxonMobil Development Company,   Liam Mallon. “If the project goes forward, it is estimated to generate $20bn in revenue to the Vietnamese government, thousands of local jobs and improved energy security from domestic gas development.”

Vietnam Electricity, PetroVietnam and Sembcorp are in discussions to build and operate the power plants. The proposed base development is expected to generate 3 GW of power, or about a tenth of Vietnam’s current total power demand.

Saipem said the contract boosted its strategic collaboration with ExxonMobil, "an important client with a strong focus on innovation and on energy transition. The contract also allows Saipem to operate once more in Vietnam, further consolidating the company’s presence in southeast Asia."

A final investment decision, targeted in 2020, will be based on a number of factors, including regulatory approvals, government guarantees, executed gas sales agreements and economic competitiveness.