Jadestone Submits Field Development Plan for Vietnam Assets

Jadestone Energy plc said it has submitted a field development plan (FDP) for the Nam Du / U Minh discoveries offshore southwest Vietnam to state-owned Petrovietnam.

The FDP lays out a phased development concept for the assets, which is based on unmanned wellhead platforms at each of the Nam Du and U Minh fields tied back to a floating production, storage and offloading unit (FPSO), the company said in a news release. The processed gas would then be exported onshore through a 21-mile (34-kilometer) pipeline tied into an existing trunkline to the Ca Mau industrial complex in southwest Vietnam.

The Nam Du and U Minh fields are located offshore southwest Vietnam in shallow waters of 164 to 197 feet (50 to 60 meters). The fields are located on the production sharing contracts of Block 46/07 and Block 51 respectively, which Jadestone both operates with a 100 percent working interest each. Nam Du and U Minh have been independently assessed to contain gross aggregate 2C resources of 171.3 billion standard cubic feet of gas and 1.6 million barrels of liquids, according to the release.

The first phase of the FDP envisages the Nam Du field initially being brought onstream, accelerating first gas to Vietnam and revenues to Jadestone to help fund the development of U Minh production in the second phase, the company said.

The FDP includes drilling two wells from each platform to support a plateau rate of 80 million standard cubic feet per day, Jadestone stated.

After receiving Petrovietnam’s endorsement, the FDP will be considered for approval by the country’s Ministry of Industry and Trade, according to the release.

The next steps in the development process include finalizing the gas sales agreement, which is “well advanced with the gas buyer,” and would formalize a heads of terms agreed in January 2024, Jadestone said.

The company also anticipates finalizing a financing plan, which could involve bringing in development partners, in parallel with major contract tenders.

Adel Chaouch, Jadestone Executive Chairman said, “Our Vietnam gas assets are fundamental to Jadestone’s investment case and are central to our strategic aim of being the leading Asia-Pacific upstream independent. Development of the discovered resource base will drive significant organic growth and value creation for our shareholders, with further material upside possible from additional prospects and leads across our license position”.

“Submission of an FDP is therefore a major milestone in the commercialization of the Nam Du / U Minh discoveries and demonstrates real momentum in our engagement with the Vietnam government. The development of Nam Du / U Minh would be a win-win for both Jadestone and Vietnam, delivering affordable gas supplies with a lower GHG [greenhouse gas] intensity to the southwest of the country, creating and sustaining jobs and economic benefits,” he added.

Singapore-based Jadestone Energy describes itself as an independent upstream company focused on the Asia-Pacific region with a portfolio of production and development assets in Australia, Malaysia, Indonesia, Thailand and Vietnam.

The company said it is pursuing a strategy to grow and diversify its production base both organically, through developments such as at Akatara in Indonesia, Nam Du / U Minh in Vietnam and the Puteri Cluster offshore Malaysia, as well as through acquisitions that fit within its financial framework.

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