Jadestone Energy, an independent upstream production and development company, has submitted a field development plan (FDP) for the Nam Du/U Minh (NDUM) discoveries offshore south-west Vietnam.
This submission to Petrovietnam marks the commencement of the regulatory approval process for these assets.
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The FDP outlines a phased development concept for NDUM involving unmanned wellhead platforms at each of the Nam Du and U Minh fields.
These platforms will be tied back to a floating production storage and offloading (FPSO) unit, with processed gas exported onshore through a 34km pipeline connected to an existing trunkline to the Ca Mau industrial complex.
The first phase of the FDP focuses on initially bringing the Nam Du field onstream, which is expected to accelerate first gas to Vietnam.
This will generate revenues for Jadestone, helping to fund the U Minh field’s development in the second phase.
The FDP proposes drilling two wells from each platform to support a plateau rate of 80 million cubic feet per day (mcf/d).
Following Petrovietnam’s endorsement, the FDP will be considered for approval by the Ministry of Industry and Trade.
Next steps include finalising the gas sales agreement, which is well advanced with the gas buyer, to formalise the heads of terms agreed upon in January 2024.
A financing plan, potentially involving development partners, will progress alongside major contract tenders including the engineering, procurement, construction and installation contract (EPCI) and FPSO, to be finalised before the project’s final investment decision.
The Nam Du and U Minh fields are located in Block 46/07 and Block 51 production sharing contracts (PSCs), respectively, in shallow waters of 50–60m.
The fields are operated by Jadestone with 100% working interests.
Jadestone executive chairman Adel Chaouch said: “Our Vietnam gas assets are fundamental to Jadestone’s investment case and are central to our strategic aim of being the leading Asia-Pacific upstream independent. Development of the discovered resource base will drive significant organic growth and value creation for our shareholders, with further material upside possible from additional prospects and leads across our licence position.
“Submission of an FDP is therefore a major milestone in the commercialisation of the Nam Du/U Minh discoveries and demonstrates real momentum in our engagement with the Vietnam Government. The development of Nam Du/U Minh would be a win-win for both Jadestone and Vietnam, delivering affordable gas supplies with a lower GHG [greenhouse gas] intensity to the south-west of the country, creating and sustaining jobs and economic benefits.”
Independent assessments revealed that these fields contain gross aggregate 2C (contingent resources) of 171.3 billion standard cubic feet of gas and 1.6 million barrels of liquids.
Jadestone Energy also recently completed the EPCI contract performance test at the Akatara gas development in Indonesia.
