Jadestone signs gas deal with PV Gas for Vietnam offshore fields

Singapore-based Jadestone Energy has signed a preliminary agreement with PV Gas, Vietnam’s state-owned gas company, to sell gas from its Nam Du and U Minh fields in the southwest of the country.

The deal covers a daily contract quantity of 80 million standard cubic feet of gas (mmscfd) for at least 55 months, starting from late 2026. The gas price will be similar to Vietnam’s pipeline gas imports and will increase annually.

The fields, which Jadestone owns 100%, have estimated resources of 171.3 billion standard cubic feet of gas and 1.6 million barrels of liquids. Jadestone expects to find more gas in the area that can be easily connected to the main facilities. The agreement will pave the way for a final gas sales contract and an updated field development plan, which Jadestone plans to submit soon.

The company also posted a presentation on its website, www.jadestone-energy.com, to showcase its Vietnam assets and the proposed development concept for the fields.

Paul Blakeley, President and CEO commented: “Securing a signed Heads of Agreement is a crucial step which helps to restart the commercialisation of our Vietnam discoveries, and regain momentum for the development of this very important asset within our portfolio. 

While there remains significant work ahead to deliver a GSPA and a detailed project plan and development schedule to first gas, this is a clear signal of intent from the Government to see this resource developed. 

The Nam Du and U Minh gas fields would deliver significant medium-term production growth for Jadestone, further diversifying our asset base and increasing our gas volumes while decreasing our GHG emissions intensity – all key elements of our strategic aim to be a leading Asia-Pacific upstream company.

The likely timing of FID at Nam Du/U Minh would result in capital expenditure occurring no earlier than mid-2025, thereby supporting an organic funding solution through Jadestone’s cash flow generation, available debt and the added potential of bringing in partners during the development phase.

Nam Du/U Minh production will also help reduce Vietnam’s reliance on expensive gas imports, which have a higher GHG emissions intensity than domestic gas. It would also contribute to the country’s energy transition and stated goal of Net Zero greenhouse gas emissions by 2050, as well as creating local jobs and economic benefits. I would like to thank PV Gas, PetroVietnam and our team in Vietnam for their efforts to bring us to this point, and we will now focus on preparation of the FDP.”

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