Jadestone Energy has signed a heads of agreement (HOA) with PetroVietnam Gas for the development of the NDUM gas fields offshore Vietnam.
This initial agreement marks a significant step towards the commercialisation of these fields, with a daily contract quantity set at 80 million standard cubic feet per day under a take-or-pay arrangement.
The NDUM fields are situated in the Block 46/07 and Block 51 production sharing contracts in shallow waters off the south-west coast of Vietnam.
Jadestone is the sole owner of the fields, which are estimated to contain nearly 171.3 billion standard cubic feet of gas and 1.6 million barrels of liquids.
According to Jadestone, there is considerable potential for additional resources in the vicinity of the NDUM fields.
Any future discoveries could be efficiently developed by tying them back to the NDUM core facilities.
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The HOA is a foundational step for negotiating a comprehensive gas sales and purchase agreement.
Furthermore, this agreement enables Jadestone to submit an updated field development plan (FDP) for the NDUM fields.
The approval of this plan is crucial for moving forward to a final investment decision (FID) on the project.
Jadestone is preparing to submit an updated FDP shortly, detailing the development concept, cost estimates and a timeline for commencing gas production, potentially as early as late 2026.
Jadestone Energy president and CEO Paul Blakeley said: “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 [greenhouse gas] 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.”