Singapore-headquartered Jadestone Energy is advancing the revived Nam Du and U Minh (NDUM) gas development offshore Vietnam, with leading domestic and international contractors preparing to bid for the provision of a gas floating production, storage and offloading (FPSO) vessel.

Project Background and Resource Potential

The NDUM gas project, which had been suspended during the Covid-19 pandemic, involves two fields located in shallow waters of 50 to 60 metres in blocks 46/07 and 51 offshore southwest Vietnam. These fields have been independently assessed to contain gross aggregate best estimate contingent resources of 171.3 billion cubic feet of gas and 1.6 million barrels of liquids. Jadestone operates both assets with 100% working interests.

Development Plan and FPSO Specifications

A field development plan submitted earlier this year contemplates a modest plateau production rate of 80 million cubic feet per day (MMcfd) of gas. The development envisages the deployment of unmanned wellhead platforms at each field, connected to the FPSO. Processed gas will be exported through a 34-kilometre offshore pipeline to an existing trunkline and on to the Ca Mau industrial complex in southwest Vietnam. The FPSO is expected to host gas-related facilities such as compression and a liquids separator, and be capable of handling up to 80 MMcfd of gas, though facilities will be over-designed to handle 100 MMcfd to allow for potential future tie-backs.

Contractor Bidding and FPSO Options

Contractors are preparing bids for the long-term charter of the NDUM floater, with key contenders including India’s Shapoorji Pallonji Energy, Malaysia’s Bumi Armada, Vietnam’s PTSC, and PetroVietnam Transportation Corporation (PV Trans). Bids are likely to be submitted in January, with the FPSO contract award expected next year. The bidding process remains at an initial phase, and more contractors could potentially join the race. Some contenders may bid alone, while others could form consortia with local yards. Both conversion of a tanker or redeployment of an existing FPSO remain viable options for the project.

Gas Sales Agreement and Timeline

Jadestone signed a gas sales heads of agreement with state-owned PetroVietnam Gas Joint Stock Corporation (PV Gas) last year. The deal stipulates first gas from the project by the end of 2026, aligning with the anticipated 24 to 28 months from final investment decision to start-up. It mandates a contract quantity of 80 MMcfd of gas under a take-or-pay arrangement over a targeted minimum plateau period of 55 months.

Regulatory Status and Strategic Importance

Following receipt of PetroVietnam’s endorsement, the field development plan will be considered for approval by the Ministry of Industry & Trade. The development is described as a win-win for both Jadestone and Vietnam, promising affordable gas supplies with lower greenhouse gas intensity to the southwest of the country, alongside job creation and economic benefits. There is further material upside possible from additional prospects and leads across Jadestone’s licence position in Vietnam.