PVN shakes hand with US oil supermajor
PVN shakes hand with US oil supermajor
The Vietnam Oil and Gas Group (PetroVietnam) and the US-based Exxon Mobil Corporation (Exxon Mobil) signed an investment agreement concerning the Blue Whale natural gas well, under the supervision of Prime Minister Nguyen Xuan Phuc.
The Blue Whale well is the largest natural gas project to date in Việt Nam, with an approximated on site reserve of about 150 billion cubic metres.
Exxon Mobil is set to invest in a well head platform for offshore water separation and two underground mining groups, each with four extraction wells and an 88 kilometre-long pipe connecting to the Chu Lai coast.
On land, PetroVietnam will invest in a gas processing factory and a power plant with two generators at 600 to 700 megawatts capacity each.
The Quang Nam province project is expected to become operational in 2023.
Another power plant will be built in neighbouring Quang Ngai province on a similar scale and estimated completion date.
The goal for annual gas production is approximately nine to ten billion cubic metre, in which one billion cubic metre is provided to the Dung Quat refinery for downstream activities.
The Blue Whale project can generate an annual amount of natural gas enough for four to five power plant with over 3,000 megawatts capacity.
It is expected to ensure national energy security, in line with both the PM’s plan for natural gas and electricity and the economic development for Quang Nam province.
The deal between the two oil companies was made as part of a conference on promoting investment in Quang Nam province on March 26th, 2017.
