Jadestone Energy has signed a gas sales and purchase agreement (GSPA) to supply gas from the Nam Du and U Minh fields offshore south-west Vietnam to PV Gas, a subsidiary of state-run Petrovietnam.
Under the terms of the contract, Jadestone will deliver 80 million standard cubic feet per day (mscf/d), equivalent to around 13,000 barrels of oil equivalent per day (boepd).
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The agreement allows for a maximum daily quantity of up to 110% of the contracted amount.
PV Gas has committed to a take-or-pay arrangement set at 90% of the daily contract quantity, or around 26 billion standard cubic feet per year during the plateau phase.
The gas price at the wellhead will follow levels comparable to Vietnam’s historical gas imports and will include a fixed annual escalation.
According to independent audits, the Nam Du and U Minh fields have combined gross 2P reserves totalling 32 million barrels of oil equivalent.
Jadestone estimates that seismically identified prospects within the current licences contain as much as 1.5 trillion cubic feet of gross unrisked gas in place.
Much of this resource is located near Nam Du and U Minh, which may provide additional volumes that could prolong or boost plateau production from the initial development.
Jadestone CEO T. Mitch Little said: “The execution of this agreement is a pivotal moment for Jadestone. After years of dedicated effort, we are now in a position to deliver the Nam Du/U Minh development, which will materially strengthen our portfolio while supporting our growth ambitions.
“With all key commercial and technical approvals now in place, and recent key hires into the Jadestone Vietnam project delivery team, we are now focused on rapidly progressing towards the project execution phase.
“Our near-term priorities are to conclude the bid evaluation for the FPSO [floating production, storage and offloading] and field infrastructure, and award their respective contracts during the second half of this year.”
Production from the Nam Du and U Minh fields is scheduled to begin in late 2028, in line with the previously approved field development plan announced in March 2026.
The development plan, which was submitted by the company to PetroVietnaM in March 2025, outlines the installation of an unmanned wellhead platform at each field. Production from both sites will be sent to a central FPSO vessel at Nam Du.
After processing, gas from both Nam Du and U Minh will be transported via Petrovietnam’s existing 18in pipeline, which connects the PM-03-CAA Block to the Ca Mau power and industrial complex in southern Vietnam.
Condensate from the fields would be moved using shuttle tankers.
As gas output from the PM-03-CAA Block is declining and no further reserves have been identified, Jadestone plans to use the available capacity in the pipeline for its own production.
