PetroVietnam Buys Chevron's Vietnamese Natural Gas Assets
The Vietnamese energy company has bought 100 percent of the shares Chevron companies with assets in Vietnam and the operatorship that are part of the Block B, Block 48&95 and Block 52/97 projects, off Vietnam’s continental shelf, PetroVietnam said in a press statement Wednesday.
These companies include Chevron Vietnam (Block B) Ltd, holding a 42.38 percent operating interest in the PSC covering Blocks B and 48/95, Chevron Vietnam (Block 52) Ltd, holding a 43.40 percent operating interest in the PSC covering Block 52/97 and also the operator under the two PSCs, and Chevron Southwest Vietnam Pipeline Co. Ltd, holding a 28.7 percent working interest in a pipeline project that would deliver natural gas from offshore to gas users in Vietnam.
Important gas discoveries have been made in Blocks B, 48/95 and 52/97 that were declared commercial in 2002. Estimates reviewed and approved by Vietnamese authorities include initially in-place gross gas at 6.008 tcf (170 bcm), 4 mcm condensates (25.5 mstb) and recoverable gas reserves (2P categories) at 3.78 tcf (107 bcm), 2 mcm condensates (12.65 mstb), PetroVietnam said.
The company believes these gas reserves will increase when additional exploration is conducted in the remaining contract area of the two PSCs.
The Block B – O Mon project is designed to transport gas from Block B and 48/95 and Block 52/97 in waters southwest of Vietnam to the O Mon, Kien Giang power plant hub, and to supplement gas supply to the Ca Mau gas fertilizer hub.
“PetroVietnam’s completion of the acquisition of Chevron’s assets in Vietnam will facilitate the acceleration of field development and the implementation of the component projects in order to make gas more quickly available to serve the development needs of the national economy,” Nguyen Xuan Son, Chairman of the Members’ Council of Petrovietnam, stated.
Total investment for field development and construction of the gas – power project utilizing gas from Block B & 48/95 and Block 52/97 is estimated to exceed $10 billion.