Jadestone advances NDUM gas fields development offshore Vietnam
Jadestone Energy announced on January 26 the signing of an initial gas sales and purchase agreement with PetroVietnam Gas, a milestone in the development of the Nam Du and U Minh (NDUM) gas fields offshore Vietnam.
The gas sales and purchase agreement outlines a daily contract quantity of 80mn ft³/day under a take-or-pay arrangement over a targeted minimum plateau period of 55 months. The anticipated first gas date is set for late 2026. The initial wellhead gas price in the agreement aligns with recent Vietnam pipeline gas imports, subject to annual escalation, the company said.
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Jadestone holds 100% working interests in the NDUM fields, which boast gross aggregate 2C resources of 171.3bn ft³ of gas and 1.6mn barrels of liquids. The company anticipates significant upside potential around the existing discoveries, with future resource additions likely to involve straightforward tie-backs to the NDUM core facilities.
This initial agreement lays the foundation for comprehensive negotiations over a fully-termed sales and purchase agreement. It also serves as a precursor for the submission of an updated field development plan for the Nam Du and U Minh fields. The approval of this plan is crucial for progressing toward the final investment decision of the project.
"The Nam Du and U Minh gas fields would deliver significant medium-term production growth for Jadestone, further diversifying our asset base and increasing our gas volumes while decreasing our GHG emissions intensity," CEO Paul Blakeley said.
He further elaborated on the likely timing of the final investment decision (FID), indicating that capital expenditure is expected no earlier than mid-2025.