Japan’s Mitsui Oil Exploration Co. (MOECO) and PTT Exploration and Production (PTTEP), an oil and gas production subsidiary of Thailand’s state-owned PTT, have teamed up with state-run PetroVietnam to develop gas projects worth up to $8 billion in southern Vietnam, according to http://nangluongvietnam.vn.
The first project, having an estimated cost of $6.8 billion, aims to tap gas in Block B offshore Vietnam. PetroVietnam has interests of 42.896%, PetroVietnam Exploration Production Corporation (PVEP) 26.788%, while MOECO and PTTEP have respective interests of 22.575% and 7.741%.
The project, operated by Phu Quoc POC Co., a subsidiary of PetroVietnam, is scheduled for operation in the second quarter of 2020.
The second project, Block B-O Mon gas pipeline, has an investment of $1.2 billion. The gas pipeline system is 431 kilometers long, consisting of a 295-kilometer pipeline offshore and a 102-kilometer pipe onshore.
With the projects, the investors aim to tap gas in Blocks B, 48/95 and 52/97 with a total volume of 107 billion cubic meters and 12.65 million barrels of condensate. The system will bring ashore 5.06 billion cubic meters annually during 20 years between 2020 and 2040.
The facilities will provide gas for thermal power plants located in the southernmost province of Kien Giang and O Mon district of Can Tho city, aiming to meet energy needs in the southern region, said PVN General Director Nguyen Vu Truong Son on April 3 when the projects were kick-started.
According to calculations, the government will reap $18.3 billion from the upstream project and $930 million from the pipeline during 20 years.