The revived Nam Du & U Minh (NDUM) gas fields development offshore Vietnam is progressing, with at least four leading contractors or consortia competing to supply a gas floating production, storage and offloading (FPSO) vessel for operator Jadestone Energy. The project, suspended during the Covid-19 pandemic, contains independently assessed gross aggregate best estimate contingent resources of 171.3 billion cubic feet of gas and 1.6 million barrels of liquids.

FPSO Tender and Bidders

Technical and commercial offers were submitted this month, with Jadestone expected to finalise its preferred bidder within two to three months. The bidders include a consortium of PetroVietnam Transportation Corporation (PV Trans) and Indonesia’s Buana Lintas Lautan (BULL), India’s Shapoorji Pallonji Energy, Vietnam’s PTSC, and Malaysia’s MTC. Singapore-based OceanStar Elite is also likely supporting one of the bidders. Some bidders may tie up with other floater specialists, and there might be additional, unconfirmed contenders.

Project Specifications and Development Plan

The NDUM FPSO is likely to host gas processing facilities like compression and a liquids separator, with a capacity to handle up to 80 million cubic feet of gas per day. The development plan envisages unmanned wellhead platforms at each field, connected to the FPSO. Processed gas would be exported via a 34-kilometre offshore pipeline to an existing trunkline, supplying the Ca Mau industrial complex in southwest Vietnam. The fields are located in shallow waters of 50 to 60 metres in blocks 46/07 and 51.

Commercial Considerations and Timeline

The operator is likely offering a seven-year lease term for the FPSO, a duration some industry sources suggest could deter bidders as it may be less commercially attractive, especially for a vessel conversion. Two options remain for the floater: converting a tanker or redeploying an existing FPSO, with a conversion appearing more likely. A final development plan was submitted in March 2025 and is in the final stages of approval. Concurrently, the formal gas sales agreement (GSA) is also nearing conclusion.

Strategic Outlook

Jadestone anticipates that concluding both the development plan and GSA in early 2026 will allow it to expedite a farm-out process to bring in partners ahead of a final investment decision. The company believes there is significant value in the NDUM development not currently reflected in its share price and aims to further de-risk the project in 2026.