Jadestone Energy signs gas sales agreement in Vietnam

Jadestone Energy signs gas sales agreement in Vietnam

Jadestone Energy, an independent upstream production and development company, on April 20 announced the signing of the Gas Sales and Purchase Agreement for the supply of gas from the Nam Du/U Minh discoveries offshore fields in Vietnam.

T. Mitch Little, CEO of Jadestone said, “The execution of this agreement is a pivotal moment for Jadestone. After years of dedicated effort, we are now in a position to deliver the Nam Du/U Minh development, which will materially strengthen our portfolio while supporting our growth ambitions."

"With all key commercial and technical approvals now in place, and recent key hires into the Jadestone Vietnam project delivery team, we are now focused on rapidly progressing towards the project execution phase. Our near-term priorities are to conclude the bid evaluation for the Floating Production Storage and Offloading and field infrastructure, and award their respective contracts during the second half of this year."

The Nam Du/U Minh discoveries are located offshore southwest Vietnam in shallow waters, with production targeted to commence in late-2028, as per the approved field development plan previously announced on March 18.

The finalised Gas Sales and Purchase Agreement (GSPA) sets out the terms on which gas will be supplied from the Nam Du/U Minh fields offshore Vietnam to PV Gas, a subsidiary of Petrovietnam, the state-owned national energy industry group of Vietnam.

The GSPA features a daily contract quantity (DCQ) of 80 million standard cubic feet per day, or approximately 13,000 barrels of oil equivalent per day (gross). Maximum DCQ is set at 110 per cent of DCQ. Take-or-pay is set at 90 per cent of DCQ, equivalent to approximately 26 billion standard cubic feet per year during the plateau period. The wellhead gas price is comparable to historical Vietnam gas imports and subject to fixed annual escalation.

Combined, the Nam Du/U Minh fields contain independently audited gross proven and probable reserves of 32 million barrels of oil equivalent. Jadestone estimates up to 1.5 trillion cubic feet of gross unrisked gas in place from seismically supported prospects within the existing licences, much of which lies near Nam Du/U Minh, representing low-risk upside potential which could extend and/or increase plateau production from the initial development.

VIR