Onshore-Offshore Vietnam Contract Goes to Saipem

Onshore-Offshore Vietnam Contract Goes to Saipem
The 'Blue Whale' project could generate $20B for Vietnam's government.

Saipem has won an onshore-offshore front end engineering design (FEED) contract for a proposed integrated natural gas-to-power development in Vietnam.

A joint venture of ExxonMobil Exploration and Production Vietnam Limited (EMEPVL), PetroVietnam and PetroVietnam Exploration Production Corp. awarded Saipem the FEED contract for the Ca Voi Xanh (Blue Whale) project, Saipem reported in a written statement emailed to Rigzone Wednesday.

According to Saipem, the project entails designing the facilities for the development of an offshore gas and condensate reservoir in Block 118 offshore Vietnam. Treated gas from Ca Voi Xanh – Vietnam’s largest gas field, discovered in 2011 – will be delivered to two third-party power complexes to generate electricity locally, Saipem and ExxonMobil reported. Saipem noted that it will design the following under the FEED contract:

  • An offshore platform
  • Offshore gas and condensate pipelines
  • Offshore fiber optic cabling
  • An onshore gas treatment plant
  • Onshore pipelines
  • An onshore condensate offloading facility

“The awarded contract boosts our strategic collaboration with ExxonMobil, an important client with a strong focus on innovation and on energy transition,” stated Mauro Piasere, Saipem XSIGHT’s chief operating officer. “The contract also allows Saipem to operate once more in Vietnam, further consolidating the company’s presence in the area of South-East Asia.”

In a separate announcement emailed to Rigzone Wednesday, ExxonMobil stated that it is filing permits, planning applications and other preparatory work for the proposed development. Should the “Blue Whale” project advance beyond the FEED stage, ExxonMobil will lead its construction and operation, the supermajor noted.

“The Ca Voi Xanh project could bring a number of long-term benefits to the country, including cleaner, reliable power to help drive economic growth and improved living standards,” said Liam Mallon, president of ExxonMobil Development Co. “If the project goes forward, it is estimated to generate $20 billion in revenue to the Vietnamese government, thousands of local jobs and improved energy security from domestic gas development.”

ExxonMobil also stated that Vietnam Electricity, PetroVietnam and Sembcorp are holding talks to build and operate the power plants, which would generate three gigawatts of electricity. That amounts to roughly 10 percent of Vietnam’s current total power demand, ExxonMobil added.

Depending on regulatory approvals, government guarantees, executed gas sales agreements and economic competitiveness, a final investment decision on the integrated gas-to-power project could occur in 2020, ExxonMobil concluded.



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