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Feb 12, 2019 / 15:32

PetroVietnam urged to speed up multi-billion oil & gas projects

Linh Pham

The major offshore gas projects are important to the country`s economic growth.

Vietnamese Deputy Prime Minister Trinh Dinh Dung has asked Vietnam National Oil and Gas Group (PetroVietnam) in 2019 to quicken the undertaking of major offshore oil and gas projects which receive dozens of billions of dollars from foreign investors. 
 
Deputy PM Trinh Dinh Dung works with PetroVietnam on Feb 11. Photo: Baochinhphu
Deputy PM Trinh Dinh Dung works with PetroVietnam on Feb 11. Photo: Baochinhphu
The focus should gear towards the Block B – O Mon, Ca Voi Xanh gas projects, Dung Quat Oil Refinery, gas-fueled power plants of Long Phu and Thai Binh 2, among others, Dung said at the meeting with PetroVietnam on February 11. 
 
Part of O Mon gas project. Photo: Nhadautu
Part of O Mon gas project. Photo: Nhadautu
Block B – O Mon gas project off Vietnam’s southern shore of Kien Giang province with 69.67% stakes held by PetroVietnam, 22.57% stakes by Japanese Mitsui Oil Exploration Co., Ltd (MOECO), and 7.74% by Thai national petroleum company PTT Exploration and Production Public Company Limited (PTTEP). So far, the investors have poured a total of US$10 billion into the project. 

Scheduled to extract the first gas flows in 2021, the project is expected to generate 5.06 billion cubic meters (cu.m) of gas/year and might result in revenues of US$47 billion during 20 years. 

Ca Voi Xanh (Blue Whale), Vietnam’s largest offshore gas project off the central city of Danang discovered in 2011 with reserves of 150 billion cu.m, has an investment of US$4.6 billion from PetroVietnam and US-based ExxonMobil. The project is estimated to generate $20 billion in revenue to the Vietnamese government, according to Liam Mallon, president of ExxonMobil Development Company. 
 
Part of Dung Quat Oil Refinery. Photo: Zing
Part of Dung Quat Oil Refinery. Photo: Zing
Dung Quat Oil Refinery, with an investment of US$3 billion, the first oil refinery in Vietnam is designed to refine 6.5 million tons of crude oil per year, meeting one third of the domestic petroleum consumption. After nine years of operations, the plant has made revenues of more than US$40 billion. PetroVietnam plans to raise the refinery’s capacity to refine 8.5 million tons of crude oil per year.     

In January 2018, Binh Son Refining and Petrochemical Company (BSR) – the operator of Dung Quat oil refinery – sold a 7.79% stake at its initial public offering (IPO). BSR is seeking to sell another 49% stake in the time to come. 

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