Wheels up to get the go-ahead for phased development of gas assets in Southeast Asia

AIM-listed and Singapore-headquartered oil and gas player Jadestone Energy has handed over a field development plan (FDP) for hydrocarbon discoveries off the coast of Vietnam, Southeast Asia.

While describing the FDP submission to Petrovietnam as “a major milestone in the commercialization of Jadestone’s significant gas resource offshore Vietnam,” the firm underlines that this kicks off the regulatory approval process for the Nam Du/U Minh (NDUM) discoveries offshore southwest Vietnam.

A phased development concept is envisioned for NDUM based on unmanned wellhead platforms at each of the Nam Du and U Minh fields tied back to a floating production, storage, and offloading (FPSO), with processed gas exported onshore through a 34-kilometer pipeline tied into an existing trunkline to the Ca Mau industrial complex in southwest Vietnam.

Adel Chaouch, Executive Chairman of Jadestone, commented: “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 commercialization 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 intensity to the southwest of the country, creating and sustaining jobs and economic benefits.”

The company claims the first phase of the FDP expects the Nam Du field to be brought on stream, accelerating the first gas to Vietnam and revenues to Jadestone to help fund the development of U Minh production in the second phase.

This FDP contemplates drilling two wells from each platform to support a plateau rate of 80 MMscf/d. Upon the receipt of Petrovietnam’s endorsement, the FDP will be considered for approval by the Ministry of Industry and Trade.

Furthermore, Jadestone claims that the next steps in the development process entail finalizing the gas sales agreement, which is well advanced with the gas buyer, to formalize the heads of terms agreed in January 2024. Nam Du and U Minh have been independently assessed to contain gross aggregate 2C resources of 171.3 Bscf of gas and 1.6 MMbbls of liquids.

The company points out that a financing plan, which could involve bringing in development partners, would be progressed in parallel with major contract tenders, encompassing the EPCI contract and FPSO, with both finalized before the project reaches a final investment decision (FID) and any significant expenditure. 

Located offshore southwest Vietnam in shallow waters of 50-60 meters, the Nam Du and U Minh fields are situated in Block 46/07 and Block 51 PSCs, respectively, which Jadestone operates with 100% working interests.

Vietnam is keen on getting American gas, as confirmed by PV Gas, a subsidiary of Vietnam Oil and Gas Group (Petrovietnam), which inked deals with Excelerate Energy and ConocoPhillips to work on sourcing liquefied natural gas (LNG) from the United States.

Recently, Jadestone, which is also working on assets outside Vietnam, hired Valaris’ rig on a one-well contract offshore Australia. The drilling gig is expected to begin this month in direct continuation of the rig’s current program with another operator.