State-owned PetroVietnam has started pumping first gas from its Sao Vang-Dai Nguyet field off Vietnam’s southern coast.
PetroVietnam said that first gas from the Sao Vang-Dai Nguyet field was delivered on Monday, 16 November 2020.
According to the company, development of the Sao Vang-Dai Nguyet field in the Nam Con Son basin is a prerequisite for the development of the Nam Con Son 2 project chain, one of the key projects of PetroVietnam.
The Nam Con Son 2 project chain consists of two projects – the adjusted Nam Con Son 2 gas pipeline and the Sao Vang-Dai Nguyet gas pipeline.
Gas output from the field is estimated at 1.5 billion cbm a year and equivalent to 15 per cent of Vietnam’s total gas output in 2019. The field will also deliver 2.8 million barrels of crude oil and condensate annually.
Sao Vang-Dai Nguyet is a deepwater high temperature-high pressure gas field located in the Nam Con Son basin on Vietnam’s continental shelf, some 300 kilometres to the southeast, in water depths ranging from 110 and 130 metres.
Idemitsu holds a 43.08 per cent interest in the field while Teikoku Oil and PetroVietnam hold 36.92 and 20 per cent, respectively. PetroVietnam is the owner of the Nam Con Son 2 pipeline which connects the field with its onshore facilities in the Vung Tau province.
The company also stated that the gas from the field would be sold to industrial customers, including power plants in southern Vietnam.
It is worth reminding that Jadestone Energy earlier this month settled a dispute with Teikoku Oil , a subsidiary of Japan’s Inpex Corporation, regarding a sale and purchase agreement for a 30 per cent working interest in Block 05-1 which holds the Sao Vang-Dai Nguyet field.
The dispute over the agreement worth $14.3 million began back in 2018 and was resolved on 11 November 2020.