Jadestone Tenders for Offshore Vietnam Transport

(Asia) Nam Du and U Minh Fields

Hydrocarbon explorer Jadestone Energy said it is tendering for breakbulk transportation and installation work at the Nam Du and U Minh field development, offshore southwest Vietnam.

The firm said it is finalizing details with the Vietnamese government and expects final approval for the offshore projects to be received imminently.

“Our southwest Vietnam gas development project will shift into high gear immediately upon field development sanction, including the award of a number of major procurement streams,” said Paul Blakeley, CEO of Jadestone.

‘Major’ Construction Work

A gas sales and purchase agreement is expected to be signed in the coming months, after the gas price is approved, and Jadestron report that contracts are in place to start “major” construction work.

“Detailed engineering and procurement activities have commenced, in connection with the development, which remains on schedule for first gas production in late 2021,” a spokesperson for Jadestone said.

Alongside development of the offshore Nam Du and U Minh fields, Jadestone also plans to drill the H6 infill well at Montara, and the 50H infill well at Stag. The company expects drilling rig and long lead contracts to be awarded in the second quarter of 2020.

Further contracts for the projects include a facilities EPC contract, an FPSO lease and related O&M contract, a joint development agreement for the two fields, and a tie-in services agreement for the connection into the Ca Mau pipeline.

RBL Enlargement

In total, Jadestone estimates capital spending US$160 million to US$190 million across its Vietnamese exploration efforts.

The company also announced positive 2020 guidance with a target for crude oil production of 13,500 to 15,500 barrels per day. The firm also announced it had enlarged its existing reserves based loan, amending to an initial sizing of US$200 million.