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Gas price inked for $10-billion Block B-O Mon

A long-anticipated contract to fix wellhead gas price transport for Block B-O Mon, one of the two biggest and most significant petroleum projects in Vietnam, was signed on September 1. 

The deal was inked between Vietnam Oil and Gas Group (PetroVietnam), PetroVietnam Exploration Production Corporation (PVEP), and PetroVietnam Gas Joint Stock Corporation (PV Gas), Japan’s Mitsui Oil Exploration Co., Ltd. (MOECO), and Thailand’s PTT Exploration and Production Public Company Limited (PTTEP).

According to PetroVietnam general director Nguyen Vu Truong Son, this signing ceremony played an important role in the development strategy of this large-scale project as a basic foundation for partners to give their final investment decision and put the project into implementation.

This project, Son added, has quite a complicated geological structure, which requires exploitation methods similar to gas projects in the Gulf of Thailand.

In July, PetroVietnam submitted a gas field development plan to the Ministry of Industry and Trade, claiming that the exploitation will need up to 1,000 drilling wells and 50-60 oil rigs.

Vietnamese Deputy Minister of Industry and Trade Cao Quoc Hung said Block B-O Mon is one of the two biggest gas projects in Vietnam, with a total investment of $10 billion.

With an annual output of 5 billion cubic metres, the project will supply gas for O Mon Power Centre and Ca Mau gas-power-fertiliser complex.

The Production Sharing Contract of Block B&48/95 was signed in May 1996 and Block 52/97 in October 1999. In February 2015, PetroVietnam successfully acquired Chevron’s assets in these blocks and the pipeline and officially became the project operator.

Source: VIR