10:00 | 10/07/2021 Companies
(VEN) - Vietnam’s Oil and Gas Group (PetroVietnam) welcomed the first flow of gas from phase 2A of the Su Tu Trang (White Lion) oil field on June 18. The field, off the southern coast of Vietnam, is considered one of the areas with the highest potential for oil and gas reserves in the country’s continental shelf.
Representatives of participating units at the event
The annual output of more than 14 billion cubic feet of gas will make an important contribution to increasing the gas output in the Cuu Long basin supplied to households in the southeast region. The reservoir is located about 62 kilometers off the Vung Tau coast at a depth of 56m.
The plan to develop phase 2A of the Su Tu Trang oil field was approved by the Prime Minister in December 2019 with a total expected consolidated capital expenditure (CapEx) investment of nearly US$138 million, and expected recovered reserves of 63 million barrels of condensate and 193 billion cubic feet of gas by the end of September 2025.
Petrovietnam announces receipt of first gas flow from Su Tu Trang oil field phase 2A, Block 15-1
During the drilling process, Petrovietnam and its partners encountered many difficulties due to the Covid-19 epidemic and mobilization of equipment and human resources took longer than usual. The difficulties were compounded by the well’s high temperature and relatively high pressure. However, with the support of Petrovietnam's executives, the project was completed 16 days ahead of schedule.
The gas was sold to PV GAS right on the rig and was transported through the Su Tu Vang-Rang Dong-Bach Ho pipeline, compressed at the Bach Ho field before being brought onshore.
The project’s completion ahead of schedule and the better-than-expected exploitation capability signals an expected increase in the output of the entire Block 15-1, yielding a large source of revenue for the State budget and participating parties in the project. The commitment to buy and sell commercial gas Phase 2A paves the way for development of the next phase - 2B.
Dinh Co gas processing plant where PV GAS receives and processes gas in the southeastern region
At the ceremony announcing the Phase 2A gas flow, Petrovietnam President and CEO Le Manh Hung emphasized that Block 15-1 is the flagship of Vietnam’s oil and gas exploitation, contributing significantly to the revenue of Vietnamese government (approximately US$10.4 billion). He also expressed hope that project participants would continue to bring into play their talents, intelligence, enthusiasm and solidarity for the benefit of further development of this industry and the image and reputation of Petrovietnam.