Jadestone Energy has rescheduled first gas from the joint development of Nam Du and U Minh gas fields offshore southwest Vietnam to late 2022 at the earliest, or 2023.
The project has been deferred due to ongoing delays in approvals and amidst coronavirus disease 2019 (COVID-19) oil price drop. The Vietnamese government has yet to approve the FDP (field development plan) for Nam Du and U Minh development. Jadestone continues to be engaged in discussions relating to a gas sales and purchase agreement which it anticipates will be completed alongside the eventual FDP approval.
Development of Nam Du in Block 46/07 and U Minh in Block 51 will involve two unmanned WHPs (wellhead platforms) namely ND WHP and UM WHP connecting to a leased FPSO (floating production, storage and offloading) vessel at Nam Du field. The platforms will be connected to the FPSO via one 12-inch 1.5 km pipeline from ND WHP and one 12-inch, 24 km pipeline from UM WHP. In addition, a 14-inch 34 km gas export pipeline will connect the FPSO to the existing PM-3 pipeline. Detailed engineering and procurement activities have commenced and all major contracts and other commercial arrangements relating to the project are in final form and ready for execution upon project sanction. Production from U Minh is expected to commence approximately 18 months after Nam Du comes online.