Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Glimmers of hope for giant Vietnam offshore gas project

A group of people waving Vietnamese flags.
A group of people waving Vietnamese flags.

There are increasing signals that the long-stalled multi-billion dollar Block B gas project offshore Vietnam could finally start making progress again this year.

PetroVietnam’s Block B development, one of the country’s biggest upstream projects, was initially expected to be sanctioned by the end of 2017. But it has been stalled for several years. The project, which will underpin construction of a group of gas-fired power plants, was delayed by complex price negotiations, as well as a difficult political environment that complicated internal decision making at the national oil company.

However, PetroVietnam and its partners Mitsui Oil Exploration and Thailand’s PTT Exploration and Production (PTTEP), could finally be preparing to move forward after investment approvals have been given for one of four power projects set to be supplied by Block B. The Mon II gas-fired power complex, being developed by the Marubeni and Vietracimex joint venture, with 1050 MW capacity, received investment approvals earlier this year.

Local media have reported that the proposed $1.3 billion O Mon II power development is due to come online in 2024 or 2025 to coincide with the start-up of Block B.

Another signal that Block B could start making progress is that engineering contractors, Hyundai Heavy Industries and McDermott, have been told that contracts for the main offshore production facility are due to be awarded in the fourth quarter this year, reported Upstream.

The Block B gas project is located in Malay-Tho Chu basin, southwest Vietnam, and includes the development of a gas field and pipeline. The project was announced in April 2016.

The development is planned to produce gas from Blocks B and 48/95 and Block 52/97 and to ship it to the western part of the region to supply power capacity in excess of 4,000 MW. The Block B field development is estimated to account for $6.8 billion of the estimated $10 billion total for the project.

PetrovVietnam acquired ownership of the Block B, Block 48/95 and Block 52/97 projects from Chevron in June 2015 and became the operator after the two companies failed to reach a consensus on gas prices.

Blocks B, 48/95 and 52/97 lie offshore Vietnam in water depths ranging from 60 metres to 80 metres.

Recommended for you

More from Energy Voice

Latest Posts