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Signing ceremony for Project Development Framework Agreement and Ca Voi Xanh gas sales Framework Agreement among PVN, PVEP and ExxonMobil

On January 13th, 2017 in Hanoi, PetroVietnam (PVN), PetroVietnam Exploration Production Corporation (PVEP) and ExxonMobil Viet Nam (ExxonMobil) organized the signing ceremony for the Project Development Framework Agreement and Ca Voi Xanh gas sales Framework Agreement. 

Politburo Member, Deputy Prime Minister Vuong Dinh Hue and representatives from the Government Office, central Ministries and sectors and Quang Nam Province attended the ceremony.

Representatives from PVN include Mr. Nguyen Quoc Khanh, Chairman of the Board of Directors, Mr. Nguyen Vu Truong Son, CEO, members of the Board of Directors, Executive board and representatives of other PVN departments. 

From PVEP Group, Mr. Ngo Huu Hai, CEO, members of the Board of Directors, Executive board and representatives of other PVEP departments were in attendance.
Mr. Paul Greenwood, Vice President for Gas and Electricity, ExxonMobil, and Mr. Greg Smith, Chairman amd CEO of ExxonMobil Viet Nam were also present at the ceremony.

PetroVietnam (PVN) and PetroVietnam Exploration Production Corporation (PVEP) and ExxonMobil Viet Nam signed a Joint-research Agreement in 2007, the foundation for the 3 parties to later sign the Oil and Gas product sharing contract (“PSC”) for off-shore blocks in Central Vietnam on June 30th, 2009. In August 2015, Blue Whale gas field was discovered and declared commercialy viable.

Upon the Prime Minister's approval of the Masterplan for the location of the center for gas and electricity in Central Viet Nam and the project's scope of investment, in September 2016, the Ministry of Industry and Trade approved the Outline Development Plan (ODP) which includes off-shore extraction, pipeline transporting gas on-shore, gas treatment plant (GTP) and commercial gas pipelines to consumers.

The Blue Whale gas project is the biggest gas project in Vietnam to date. This project will provide the crucial gas source to help the Central region develop, provide additional energy for the South in the future, act as the springboard for the development of  the petrochemical industry and driver for the development of local industries, contribute to national energy security, add impetus to the economic development and creation of jobs for the region.

Following negotiations, PVN, PVEP and ExxonMobil VIet Nam agreed to sign the PF HOA - Project Framework Heads of Agreement and GSA HOA-Gas Sales Agreement Heads of Agreement for Blue Whale. The signing of these two agreements play a foundational role for contractors to optimize the the pre-front end engineering design (Pre-FEED) and the front end engineering design (FEED) to meet the goal of first commercial gas by the end of 2023.

In the first stage, production from the Project will provide enough gas for four (04) power plants with total capacity of 3,000 MW (2 plants in Chu Lai Economic Zone in Quang Nam province and 2 plants in Dung Quat Economic Zone in Quang Ngai province). Production capacity during the expansion stage will provide gas for petrochemicals or a 5th power plant with capacity of about 750 MW as laid out in the Electricity Master Plan No. 7 approved by the Prime Minister. The total investment for the Projects is expected to be about 10 billion USD and will contribute about 20 billion USD to the State budget.

Source: PVEP