Daily Newsletter

01 November 2023

Daily Newsletter

01 November 2023

Vietnam’s Phu Quoc Petroleum offers letter of award for Block B project

The execution of the complete project contract by the entities is expected in early 2024.

Shivam Mishra November 01 2023

Phu Quoc Petroleum Operating Company (PQPOC) has given a limited letter of award to a consortium of McDermott and Petrovietnam Technical Services Corporation (PTSC) for a gas project offshore Vietnam.

The limited letter of award is intended for engineering, procurement, construction, installation (EPCI), and hook-up and commissioning (HUC) services.

The execution of the complete project contract by the entities is expected in early 2024 with the award to carry a value in excess of $1bn.

Under the terms of the agreement, the consortium will offer EPCI and HUC services for the flare tower, living quarters platform, central production platform and bridges at the Block B gas development project.

PQPOC, a subsidiary of Vietnam National Oil and Gas Group, is the operator of Block B gas development project located in shallow water off the south-west coast of Vietnam.

Commercial production from the gas project is expected to commence in 2027 and peak in 2046.

According to GlobalData, as per economic projections, production will go on until the field reaches its economic limit in 2054.

Alongside PQPOC, Japan Oil, Gas and Metals National, Mitsui and PTT Public are the partners on the project.

Commenting on the limited letter of award, McDermott senior vice-president, subsea and floating facilities Mahesh Swaminathan said: "This award combines our 50 years of experience executing complex EPCI projects in the region with PTSC's technical strengths.

"Together, we will initiate this important groundwork as we finalise the full project scope and ultimately deliver another world-class project for Vietnam."

Earlier in 2023, PQPOC awarded project management support service work to PVD Invest, a unit of Petrovietnam Drilling and Well Service Corporation (PV Drilling).

Quantum computers could transform oil and gas research

Although quantum computing is still in the R&D stage, its potential use cases in the oil and gas industry are numerous and are likely to expand. Oil majors, such as BP and ExxonMobil have joined IBM’s Q Network to develop quantum computers that will increase the understanding of subsurface geology. Companies are also looking at these computers to study molecular modeling and emission mitigation. Besides, the long-standing problems of matching demand with production and optimizing supply chains could be solved using quantum computing.

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