Petrovietnam kicks off Block B – O Mon projects

On 03rd April 2016, in An Bien district, Kien Giang province, Prime Minister Nguyen Tan Dzung attended the ceremony organized by PVN and pressed button for Block B – O Mon projects kickoff.

Accompanying the Prime Minister were Minister of Industry and Trade Vu Huy Hoang, Vice Minister Cao Quoc Hung; representatives from Central Ministries and Sectors and Provinces of Kien Giang, Hau Giang, Ca Mau and Can Tho…

 

Petrovietnam was represented by President & CEO Nguyen Vu Truong Son, members of the Board of Directors and Executive Management Board, heads of divisions as well as leaders from the units involved in the projects including Phu Quoc POC, SWPOC, PTSC, PV GAS and PVC…

 

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Petrovietnam President & CEO Nguyen Vu Truong Son reported to Prime Minister Nguyen Tan Dzung on Block B – O Mon projects

 

Mr. Nguyen Vu Truong Son reported to Prime Minister Nguyen Tan Dzung and the working group that the objective of the projects is to produce and collect gas at Block B, 48/95 & 52/97 with total expected reserves of 3.78 billion cubic feet (about 107 billion m3) and 12.65 million condensate barrels; gas production brought to the land is about 5.06 billion m3/ year and lasts 20 years from 2020 to 2040 for gas supply to power plants in ​​Kien Giang and O Mon to meet the demand for electricity in Southern region for the period after 2020 generally and South West region particularly.

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Petrovietnam kicks off Block B – O Mon projects

 

Block B gas projects consist of Block B, 48/95 & 52/97 field development project and Block B – O Mon gas pipeline project.

 

Block B field development project has total investment of US$ 6.8 billion for 20 years. It is invested by PetroVietnam (42,896%); PVEP (26,788%); MOECO (22,575%); PTTEP (7,741%) operated by Phu Quoc POC, PVN’s subsidiary. The Project will be put into operation from Quarter II/2020 with main technologies and equipment including 01 central technology platform and 46 operation platforms; 01 housing platform; 01 condensate vessel and about 750 production wells.

 

Block B – O Mon gas pipeline project has total investment of US$ 1.2 billion. It is invested by PVN/ PVGas/ MOECO (Japan) and PTTEP (Thailand) in the form of Joint Operation. The Project is planned to be put into operation in Quarter II/2020. The pipelines have total length of 431km with design capacity of 20.3 million m3, of which the sea pipeline has the length of approximately 295 km, diameter of 28 inches, transporting gas from Block B to the landfall station in An Minh/ Kien Giang province; the branch pipeline has the length of 37 km, diameter of 18 inch, connecting from KP209 to Mui Tram landfall station to supplement gas for PM3 - Ca Mau pipeline; the shore pipeline has the length of 102 km, diameter of 30 inches, running through Kien Giang and Can Tho provinces, supplying gas to power plants at Kien Giang and O Mon Power Centers in Can Tho province. There will be landfall station, line shutoff valve stations, Kien Giang gas distribution station (GDS) and O Mon gas distribution center (GDC) along the pipelines.

 

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Prime Minister Nguyen Tan Dzung gave speech at the ceremony

 

PVN President & CEO Nguyen Vu Truong Son confirmed that in parallel with the implementation of Block B projects, according to the Prime Minister’s Decision No. 428/QD-TTg dated 18th March 2016 approving "National electricity development planning for 2011 – 2020 period, considering until 2030”, PVN and EVN will invest power plants in Kien Giang and O Mon power centers respectively.

 

The Project is an important milestone in the continuity of infrastructure expansion of the gas industry in Southwest region, realization of " Master plan for Vietnam gas industry development up to 2015, orientation to 2025" approved by the Prime Minister, and meeting the objectives of the "Strategy for development of Vietnam oil and gas industry until 2025, orientation to 2035".

 

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Petrovietnam President & CEO Nguyen Vu Truong Son reported at the ceremony

 

The development of projects will form large gas infrastructure such as the gas infrastructure of Southeast region. The operation of the Project will contribute to stabilizing national energy security, supplementing to insufficient gas resource of PM3 - Ca Mau pipelines and ensuring gas supply to power plants in Kien Giang and O Mon/ Can Tho under the approved electricity planning (7th revision); it will also positively contribute to the economic development and growth in Southeast region in general and Kien Giang, Can Tho provinces in particular.

 

Block B natural gas supplied to power plants is clean and environmentally friendly in comparison with coal-fired power plants. In addition, it will contribute to reducing demand for foreign currencies to import FO, DO and LPG fuels.

 

Preliminary estimate for 20-year operation shows that upstream project and pipeline project contribute about US$ 18.3 billion and US$ 930 million respectively to the State budget (corporate income tax is about US0 million and VAT is US0 million). The project also contributes to the State budget with the import tax revenue of about 400 billion dong during its construction.

 

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Mr. Pham Vu Hong – Kien Giang PPC Chairman made speech at the ceremony

 

At the ceremony, Mr. Pham Vu Hong – Kien Giang PPC Chairman asserted the province would give maximum support to the Investor (PetroVietnam) during the project implementation. With such scale, they realize the project very important to Kien Giang province;  and many difficulties and challenges facing the investors, contractors and Kien Giang province in approving/ adjusting the provincial planning, handing over area to the project and other procedures. Kien Giang province commits to accompany and provide the best support to the project such as handing over the area on schedule, support the land acquisition and other procedures within the provincial authority so that the investors and contractors can implement the project as quick and effective as possible to achieve the goal set out by the Government.

 

Giving a speech, Prime Minister Nguyen Tan Dung highly appreciated Petrovietnam leaders for quick commence of Block B - O Mon gas projects to ensure gas supply to power plants in Southwest region as mentioned in the 7th adjusted electricity planning. The projects will be an importantly complete step for the entire gas infrastructure complex in the region. Upon completion and being put into operation, the projects will contribute to the socio-economic development of Southwestern region, realization of "Master plan for development of Vietnam gas industry up to 2015 and orientations to 2025" and meeting the objectives of the "Strategy for development of Vietnam oil and gas industry until 2025 and orientation to 2035".

 

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Prime Minister Nguyen Tan Dung, representatives of central ministries & sectors and Petrovietnam leaders

at the ceremony for project kickoff

 

To facilitate successful implementation of the projects, the Prime Minister requested PetroVietnam, as an investor, together with the project contractors to address responsibility, seriously perform commitments in the Agreement and comply with the state regulations on investment and construction to ensure that the projects are put into operation on schedule and in good quality. The ministries, directly MOIT, are to coordinate with relevant ministries/ agencies, Kien Giang province and Can Tho city to support the investors and contractors solving obstacles, accelerate progress with a view to reach the common goal of schedule, quality, safety and efficiency of the projects including gas power plant projects invested by EVN in O Mon power center. EVN is to concentrate resources for investment and construction of power plants in O Mon power center, ensuring that the schedule for operation is in line with the schedule for gas supply of Block B - O Mon projects.

 

The Prime Minister reminded, during the project implementation, the province must proactively cooperate with the Investors and local petroleum units to support and take care of people's lives. He stressed: I acknowledge the efforts of the oil & gas industry and local authority. I believe that, under the direction and effort to overcome challenges of leaders and employees of the oil & gas industry, Block B - O Mon gas projects will be completed and put into operation on schedule, bring sound achievements to the whole industry and successful implementation of political tasks entrusted by the Party and the State.

 

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Petrovietnam President Nguyen Vu Truong Son awarded one billion dong to Kien Giang PPC Chairman Pham Vu Hong

to support the province’s social welfare activities

 

On this occasion, on behalf of Petrovietnam, President & CEO Nguyen Vu Truong Son awarded one billion dong to support social welfare activities of Kien Giang province.

Source: pvn.vn