The Hanoitimes - A signing ceremony was held on September 1 in Hanoi for the Letter of Agreement of the Wellhead Gas Price and Transportation Tariff for the Block B Gas – O Mon project.
The ceremony was jointly held by the Vietnam Oil and Gas Group (PVN), Petrovietnam Exloration and Production Corporation (PVEP), Mitsui Oil Exploration Company Limited (MOECO) and PTT Exploration and Production Public Company Limited (PTTEP) and Petrovietnam Joint Stock Gas Corporation (PV Gas).
The contract on gas and oil stakes at Block B & 48/95 PSC and Block 52/97 PSC was signed on 28 May 1996 and 19 October 1999 respectively.
The contractors recently completed the Hydrocarbon Initially In-Place (HCIIP) report for Kim Long, Ac Quy and Ca Voi fields and obtained the approval of the Prime Minister.
With the support and agreement of the government, PVN successfully acquired Chevron’s interest in those blocks and the pipeline project in February 2015 and become the operator of the upstream and the pipeline.
Block B Gas – O Mon is one of the largest gas projects to date in Vietnam. The upstream and the pipeline projects require a total estimated investment of US$10 billion and are expected to contribute to the state budget about US$18 billion.
The project will provide gas supply of about 5BCM annually to power plants at the O Mon power complex and Ca Mau Gas – Power – Fertilizer complex for the next 20 years. It is expected to fuel power generation and local industries, ensuring national energy security and ultimately boosting up the economic growth of the Southwest region of Vietnam.
PVN, PVEP, PV Gas and Foreign Partners, MOECO and PTTEP, have reached an agreement on the wellhead gas price and transportation tariff which will enable thefinalization of relevant commercial agreements across the gas value chain.