17:11 | 23/09/2017 Energy
Agreements on wellhead gas prices and transport costs for Block B – O Mon gas project were signed in Hanoi on September 1.
|At the event - Source: VNA|
The deals were inked between the 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).
Speaking at the signing ceremony, PetroVietnam General Director Nguyen Vu Truong Son said the project has a quite complicated geological structure, which requires exploitation methods similar to other gas projects in the Gulf of Thailand.
In July, PetroVietnam submitted a gas field development plan to the Ministry of Industry and Trade, under which the exploitation needs up to 1,000 drilling wells and 50-60 oil rigs, he said.
The signing of the agreements creates an important premise for the involved parties to soon reach necessary trade deals for the project, he added.
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 USD.
With an annual output of 5 billion cubic meters, the project will supply crude gas for O Mon power centre and Ca Mau gas-power-fertilizer complex.
Particularly, with estimated total revenue of 47 billion USD, the project is expected to contribute around 18 billion USD to the State budget.
The provision of gas from this project will help the south-western region boost development of industries and ensure energy security for the nation.