Jadestone Expects Approval for Vietnam Gas Project Soon
Southeast Asia-focused Jadestone Energy’s field development plan for the Nam Du and U Minh gas fields, offshore southwest Vietnam, is in the final stages of the formal Vietnamese government approval process, it said February 25 in a statement.
Jadestone said it anticipates final approval of the plan, which includes approval of the gas price, shortly. “Field development plan approval constitutes official project development sanction, and there are no further regulatory or permit consents to commence construction and ultimately deliver hydrocarbon production,” it said.
Detailed engineering and procurement activities have started, in connection with the development, which remains on schedule for first gas production in late 2021, the company added. Further commercial arrangements relating to the sale of gas from the project are being incorporated into long-form documentation with the buyer, in accordance with heads of agreement signed in 2019. Jadestone said it expects to execute a gas sales and purchase agreement in the coming months, after the gas price is approved, as part of the plan approval.
“All major contracts and other commercial arrangements relating to the project are in final form, and ready for execution upon project sanction. These include a facilities EPC contract, an FPSO lease and related O&M contract, a joint development agreement for the two fields, and a tie-in services agreement for the connection into the Ca Mau pipeline,” it said.
The company is tendering the transportation and installation work and the drilling rig and long leads, which are planned for contract award in Q2 2020.