Project Profile
Value: US$4.3 billion
Location: Bay of Vietnam, Vietnam
Reserves: 5 trillion cubic feet of gas
Water Depth: 250 ft
Start-up Year: -
Block B is very significant project in Vietnam. It has a sprawling offshore component, but most importantly it underpins the construction of multiple gas-fired electricity plants in the O Mon area in the central Mekong Delta. McDermott, Daewoo Shipbuilding & Marine and Samsung Heavy Industries have been competing for the engineering, procurement, construction and installation of a 22,000 tonne topsides for the Block B gas processing platform. The project has been on hold for most of 2012 due to two parties being so far apart on the issues of gas sales agreements. Chevron has been in negotiation with PetroVietnam for nearly five years over domestic gas supplies. Companies with gas reserves in Vietnam are understood to be seeking a gas price of about US$7 to US$10 per million British thermal units, and Chevron is pushing for the latter. A PetroVietnam-operated subsea export pipeline would be built from Block B gas to O Mon. Chevron operates the block B project on behalf of Mitsui Oil Exploration, PTTEP and PetroVietnam Exploration & Production.
Operators:
PetroVietnam Exploration Production Corporation (PetroVietnam): Operator with 65.88% interest
Mitsui Oil Exploration Co.,Ltd.: 25.62% interest
PTT Exploration and Production Public Company: 8.5% interest
Contractors:
WorleyParsons: FEED contract