PetroVietnam pumps first gas from Sao Vang-Dai Nguyet offshore field

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.