en.Wedoany.com Reported - Singapore-listed oil and gas company Jadestone Energy has signed a gas sales and purchase agreement with PV Gas, a subsidiary of Vietnam's state-owned energy group Petrovietnam, to develop the Nam Du/U Minh gas fields located offshore southwest Vietnam. This agreement follows the Vietnamese government's approval of the field development plan, marking a crucial execution phase for the project.
Jadestone CEO T. Mitch Little stated, "The signing of this agreement is a pivotal moment for Jadestone. After years of effort, we can now advance the development of Nam Du/U Minh, which will significantly strengthen our portfolio and support our growth objectives."
Under the agreement's terms, the gas supply volume is 80 million standard cubic feet per day, equivalent to approximately 13,000 barrels of oil equivalent. The maximum daily supply is set at 110% of the contract volume, while the take-or-pay volume is 90%, meaning the plateau annual supply is about 260 billion standard cubic feet. The wellhead gas price references historical import levels in Vietnam and includes an annual adjustment mechanism.
The Nam Du/U Minh gas fields are located in shallow waters offshore Vietnam, with production targeted to commence by the end of 2028. These fields contain total 2P reserves of 32 million barrels of oil equivalent, as per independent audits. The company estimates that within the existing license area, the total unrisked gas initially in place is up to 1.5 trillion cubic feet, with the majority located near the fields, offering low-risk potential for production growth.
Little added, "Over the project's lifecycle, we anticipate creating significant local employment opportunities, awarding major contracts to Vietnamese businesses, and generating hundreds of millions in revenue for the government. The Nam Du/U Minh project supports Vietnam's energy strategy, prioritizing the use of domestic resources to enhance energy security and economic growth while facilitating the transition to lower-emission fuels."
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