Singapore-headquartered Jadestone Energy, Vietnam’s state-run Petrovietnam and its subsidiary PV Gas have signed a Heads of Agreement (HoA) for gas sales from Nam Du-U Minh gas field.
In a Thursday announcement, PV Gas said the Nam Du-U Minh gas field can provide 5.6 billion cubic meters of gas to Vietnam’s southwestern region. The gas is expected to be supplied to Petrovietnam’s gas-power-fertilizer complex in the southern province of Ca Mau via the PM3-CAA pipeline.
The agreement enjoins the three signatories to speed up negotiations for the signing of a sale-purchase agreement for Nam Du-U Minh gas field, PV Gas said.
Nam Du-U Minh gas field, offshore Vietnam east of the Malay-Tho Chu basin, covering 4,677 square kilometers with a depth of 50 meters, features Nam Du gas field in Block 46/07 and U Minh gas field in Block 51.
A development plan for the Nam Du and U Minh fields was submitted in 2019, according to Jadestone Energy. In mid-2022, Jadestone Energy began direct negotiations with the end-user of gas from its offshore discoveries. Development of this resource would lessen Vietnam’s future dependence on expensive imports of natural gas and contribute towards the country’s stated goal of net zero greenhouse gas emission by 2050, Jadestone Energy emphasized.