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The signing of the Gas Sales Agreement (GSPA) between Jadestone Energy and PV Gas marks a definitive turning point for the offshore industry in Vietnam. This commercial pact guarantees the flow of resources from the Nam Du and U Minh fields to the national grid operated by Petrovietnam.
Strategic collaboration in gas sales
Indeed, the project is located in the shallow waters off the southwestern coast of Vietnam, where formal production is expected to begin toward the end of 2028. The contract establishes a daily quantity of 80 MMscf/d, which is equivalent to approximately 13,000 barrels of oil per day.
The agreed commercial conditions include a 90% take-or-pay clause of the stipulated volume, providing significant financial stability for both the operator and the State of Vietnam. Likewise, the wellhead price has been aligned with the country’s historical import trends and incorporates fixed annual escalations to protect investment profitability.
Furthermore, the magnitude of the resources at Nam Du / U Minh is considerable, with audited gross 2P reserves reaching 32 million barrels of oil equivalent. Jadestone management estimates an additional potential of up to 1.5 trillion cubic feet of gas in the surrounding areas, suggesting that this development is merely the core of a much more extensive energy complex.
This infrastructure will be fundamental to supporting Vietnam’s net-zero emission goals by using sovereign resources that displace more polluting fuels and reduce external dependence.
Finally, the execution of the project will bring a direct economic impact to the region through the awarding of contracts to local companies and the generation of hundreds of millions of dollars in tax revenue.
The Jadestone team is currently evaluating bids for the floating production, storage, and offloading platform (FPSO), and the main infrastructure contracts will be awarded during the second half of this year. The integration of qualified local personnel and close collaboration with PV Gas ensure that development is carried out under standards of efficiency and operational safety.
Source and photo: Jadestone Energy