Vietnam’s state-run company PetroVietnam Gas has reportedly started gas production from the Sao Vang-Dai Nguyet (SVDN) gas and condensate development project offshore Vietnam.

The SVDN development project is located in Blocks 05-1b and 05-1c in the Nam Con Son Basi off the coast of Vietnam. It is 350km south-east of the Ho Chi Minh City.

The news on first gas production comes as Vietnam struggles ‘to maintain its oil and gas production’, Reuters reported.

The South East Asian country also relies more on imports.

As per the estimates, the field’s gas output stands at 1.5 billion cubic metres (bcm) of gas per annum. This is equivalent to 15% of the total gas output produced by the country last year.

Japanese petroleum company Idemitsu Kosan operates the Sao Vang-Dai Nguyet field and owns 43.08% stake in it. Other partners include Teikoku Oil (36.92%) and PetroVietnam (20%).

The Field Development Plan for SVDN was approved by the Vietnamese Government in 2017.

In October 2018, Idemitsu Kosan awarded a time-charter contract to the Malaysia Vietnam Offshore Terminal joint venture to provide a floating, storage and offloading vessel (FSO) in Vietnam.