Jadestone Energy Makes Progress in Vietnam
Southeast Asia and Australia-focused Jadestone Energy said May 28 that Vietnamese government has approved its outline development plan (ODP) for two offshore gas fields.
The Singapore-headquartered company has received the approval for the Nam Du and U Minh gas fields in block 46/07 and block 51, respectively, offshore southwest Vietnam. This approval serves as a formal starting point for the development of these fields, the company said. Jadestone will immediately commence the front end engineering and design (Feed) work and gas sales agreement negotiations.
“I am delighted by this key approval, which we accept as a strong vote of confidence in Jadestone’s ability to deliver these offshore gas developments, which are so deeply important for Vietnam,” said CEO Paul Blakeley. “This is a perfect example of one of the central strands of our strategy, which we unveiled 18 months ago, which is to add value by commercialising near-term undeveloped discoveries, especially gas fields with logical ties to the gas-hungry domestic markets in Southeast Asia.”
The company’s revised ODPs propose commercialising the Nam Du and U Minh fields, which contain high quality, low CO2 gas resource, as stand-alone developments, utilising existing infrastructure including a nearby pipeline to feed the onshore Ca Mau power complex and adjacent fertiliser plant. As of January 1, 2016, the fields were estimated by LR Senergy to hold recoverable 2C resources of 202bn ft3 gas and 0.7mn barrels of liquids, the company said, adding it intends to complete Feed work and gas sales negotiations by approximately 3Q2019. Target for first gas production remains late 2021, it said.