EPC contracts signed for Vietnam’s offshore Block B - O Mon gas pipeline

Southwest Pipeline Operating Company (SWPOC), a subsidiary of Vietnam’s state-owned Petrovietnam, on Monday signed EPC contracts for two key packages (PC1 and PC2) of the Block B – O Mon gas pipeline project.

This marks the completion of selecting all major contractors and the transition into the procurement and synchronized construction phase of all three core packages of the pipeline. The earlier engineering, procurement, and construction (EPC) package covered the onshore gas transport segment.

According to Petrovietnam, PC1 and PC2 are crucial components of the offshore pipeline system, which is approximately 430 kilometers long and connects the Block B gas field to the O Mon power plant complex. This midstream segment plays a vital role in the national Block B – O Mon gas-to-power project chain, acting as the “energy artery from the sea to the mainland.”

Under the signed contracts, PC1, covering supply and installation of shallow-water offshore pipeline, will be implemented by a joint venture between Vietnam-Russia joint venture Vietsovpetro and Vietnamese private company Thien Nam Offshore.

It includes engineering and construction planning, procurement of materials, pipe fabrication and bending, installation and burial of nearly 80 km of 28-inch pipeline and 38.5 km of 18-inch pipeline, connection at point KP213, and pre-commissioning and operational support.

Vietsovpetro, with over 40 years of experience in the oil and gas sector and expertise in offshore construction, will serve as the main contractor responsible for overall project management and technical coordination.

Meanwhile, Thien Nam Offshore, boasting nearly 15 years of experience in oil and gas infrastructure (including involvement in major offshore pipeline projects such as Nam Con Son 2 – Phase 2 and Dai Hung), will act as a key partner in the joint venture.

PC2 on supply and installation of deep-water offshore pipeline will be handled by a joint venture consisting of Vietsovpetro, Indonesian firm TIMAS, and Vietnam’s Tan Cang Offshore Services.

Key tasks include construction design and planning; procurement of steel plates, pipe fabrication, and related accessories such as bends, flanges, fittings, and anodes; installation and connection of a 213 km long 28-inch pipeline in deep-water areas; and pre-commissioning and handover for operation in accordance with technical standards.

TIMAS brings extensive experience in international engineering, procurement, construction and installation (EPCI) services, having executed over six offshore pipeline projects with a total length exceeding 300 km. Tan Cang Offshore Services contributes advanced marine fleet capabilities and expertise in subsea surveying.

All three contractors have established a strong cooperative model, ready to mobilize full resources to ensure timely execution, technical compliance, and the highest safety standards.

With the signing of the PC1 and PC2 packages, the selection of main contractors for all three core technical components of the project (shallow-water pipeline, deep-water pipeline, and onshore pipeline) is now complete.

Previously, the onshore EPC package, undertaken by the joint venture of PetroVietnam Technical Services Corporation (PTSC) and Lilama 18, a member of the state-owned Vietnam Machinery Erection Corporation (Lilama), was signed in December 2023 and had reached 18% completion by the end of Q1/2025, staying on track with the overall project schedule.

This progress reflects SWPOC’s strong coordination and determination throughout the project preparation phase, laying the groundwork for full-scale implementation across the entire route.

Over the past time, the Block B – O Mon gas-to-power project chain has achieved several key milestones, including the signing of the EPC contract for the O Mon 4 Thermal Power Plant on June 6, 2025.

The signing of the PC1 and PC2 packages for the pipeline project marks a significant step toward aligning construction with the signed EPC contract and advancing Petrovietnam’s 2025 investment goals.

The total investment for the Block B – O Mon gas pipeline project during the 2021-2025 period is estimated at $283.48 million, signaling substantial progress in the overall project.

As the midstream project operator, SWPOC has worked with relevant parties to ensure on-schedule implementation, efficient fund disbursement, and technical quality control throughout each phase.

In parallel with construction, compensation and land clearance for the more than 100 km onshore pipeline segment passing through Ca Mau, Kien Giang, and Can Tho are being carried out in a rolling schedule and are expected to be completed in the coming days to allow uninterrupted construction from shore to sea.

By Q3/2027, SWPOC plans to deliver the first gas flow from Block B to shore, with an expected daily capacity of 16.3 to 18 million cubic meters, supplying major consumers in the southwestern region. The next phase (2028-2030) will focus on stable, safe, and cost-effective commercial operations.