188bet vipz Petrovietnam sign commercial agreements for Block B project chain

Attending 188bet vipz ceremony were Mr. Harada Hidenori - President & CEO of Mitsui Oil Exploration Co., Ltd. (MOECO), Mr. Piya Sukhumpanumet - Vice President of PTTEP (Thailand), Mr. Maruyama Yasuchika - Head of Global E&P and CCUS, Sustainable Energy Development Division, Mitsui & Co., Ltd., Mr. Ngo Son Hai - Vice President of Vietnam Electricity (EVN). Representing Petrovietnam at 188bet vipz ceremony were Mr. Le Manh Hung - Chairman of 188bet vipz Board of Directors, Mr. Le Ngoc Son - President & CEO, other members of 188bet vipz Board of Directors, Vice Presidents along with leaders from various subsidiaries, branches, and project management offices.

Mr. Le Ngoc Son – Petrovietnam’s President & CEO speaking at 188bet vipz signing ceremony

188bet vipz Block B - O Mon gas-to-power project chain is a large-scale undertaking in Vietnam, encompassing various components from development in upstream, pipeline projects, to power plants in downstream. Domestic and international investors notably involved in this project include MOECO, PTTEP, Marubeni, Petrovietnam, PVEP, PV GAS, EVNGENCO2, and WTO. 188bet vipz total investment for 188bet vipz entire project chain amounts to nearly USD 12 billion.

Blocks B, 48/95 & 52/97 (Block B) is located offshore Southwest Vietnam in 188bet vipz Malay - Tho Chu basin of Vietnam’s continental shelf, 300 km off Ca Mau coastline and about 400 km from O Mon Electricity Center, with an average water depth of approximately 77 m. 

Gas from Block B is transported via pipeline to 188bet vipz O Mon district area (Can Tho City) to supply 188bet vipz power plants of O Mon I, II, III, and IV with a total capacity of around 3,180 MW, and also can supply for Ca Mau area. Once reaching 188bet vipz stable operation, Block B will supply approximately 5.06 billion cubic meters of gas annually to power plants to generate around 22 billion kWh of electricity, responding to 188bet vipz energy demand to develop 188bet vipz economy of 188bet vipz country in 188bet vipz near future.

Previously, on 30 October 2023, thanks to 188bet vipz resolute guidance of 188bet vipz Government and 188bet vipz Prime Minister, along with 188bet vipz determination of Petrovietnam and its partners, 188bet vipz framework agreements, memorandum of understanding were signed, and 188bet vipz stream EPC package No. 1 was awarded. Based on that, on 28 March 2024, after a negotiation process in 188bet vipz spirit of balanced interests, risk sharing, and collaborative development, Petrovietnam and its partners signed agreements for 188bet vipz Block B gas-to-power project chain. Simultaneously, 188bet vipz project chain will serve as a critical resource and a steppingstone to support 188bet vipz implementation of Vietnam Government’s commitments at COP26, aiming to reduce carbon emissions in response to climate change. Additionally, it aligns with 188bet vipz Power Development Master Plan VIII, which focuses on building a greener and cleaner energy system, in line with 188bet vipz ongoing global trend of energy transition.

188bet vipz signed agreements include:

1. Gas Sales and Purchase Agreement (GSPA) for Block B: It specifies terms and conditions between 188bet vipz selling party of Petrovietnam, PVEP, MOECO (Japan), and PTTEP (Thailand) and 188bet vipz buying party of Petrovietnam. 188bet vipz annual gas supply from Block B is approximately 5.06 billion cubic meters during its stable stage.

 Signing 188bet vipz Gas Sales and Purchase Agreement (GSPA) for Block B

2. Gas Transportation Agreement (GTA) for Block B: By terms and conditions of 188bet vipz GTA, Petrovietnam leases services from 188bet vipz transporter of PV GAS, Petrovietnam, MOECO, PTTEP to ensures 188bet vipz transportation of 188bet vipz entire gas volume shared from Block B (around 5.06 billion cubic meters per year) from offshore to 188bet vipz terminal in Kien Giang and through 188bet vipz onshore pipeline from Kien Giang to O Mon (Can Tho).

 Signing 188bet vipz Gas Transportation Agreement (GTA) for Block B

3.Tie-in, Operation, and Service Agreement (TOSA) is signed between 188bet vipz gas owner of Petrovietnam, PVEP, MOECO, PTTEP and 188bet vipz transporter of PV GAS, Petrovietnam, MOECO, PTTEP. This service contract connects 188bet vipz transporter’s equipment to 188bet vipz production platform in Block B. 188bet vipz gas owner is responsible for providing related services to support 188bet vipz transporter throughout 188bet vipz contract’s duration.

 Signing 188bet vipz Tie-in, Operation, and Service Agreement (TOSA) between 188bet vipz gas owner and 188bet vipz transporter

4.After reaching 188bet vipz shore, gas from Block B will be allocated and supplied to power plants in 188bet vipz O Mon region. 188bet vipz gas sales contract between 188bet vipz seller (Petrovietnam) and 188bet vipz buyer (Power Generation Corporation 2 - EVNGENCO2) stipulates that a part of 188bet vipz Block B gas will be provided to 188bet vipz O Mon I Power Plant, with a volume of approximately 1.265 billion cubic meters per year during 188bet vipz stable stage.

 Signing 188bet vipz Gas Sales Contract between Petrovietnam and EVNGENCO2

To ensure 188bet vipz synchronized implementation of 188bet vipz project chain and achieve 188bet vipz predetermined objectives and plans, Petrovietnam and related parties still face significant challenges. These include 188bet vipz bottlenecks in policies and mechanisms to mobilize and operate 188bet vipz power system for Block B gas-consuming power plants; issues related to 188bet vipz ODA capital allocation for 188bet vipz O Mon III Power Plant project; streamlining and shortening approval procedures for 188bet vipz O Mon IV Power Plant project to meet 188bet vipz requirements of 188bet vipz project chain; and negotiating and signing electricity purchase agreements for power plants consuming Block B gas.

According to Mr. Le Ngoc Son, Petrovietnam’s President & CEO, as a participant in 188bet vipz project chain, Petrovietnam considers putting 188bet vipz Block B Project into operation as a crucial task that necessitates successful implementation. 188bet vipz development of 188bet vipz Block B Project will significantly contribute to 188bet vipz State budget and socio-economic development of provinces in 188bet vipz Southwest region. It also plays a role in ensuring national energy security.

On behalf of Petrovietnam’s leadership, as 188bet vipz investor for 188bet vipz O Mon III and IV Power Plants, Petrovietnam’s President & CEO Le Ngoc Son wished to continue receiving support from 188bet vipz Vietnam Electricity Group (EVN) in 188bet vipz process of negotiating, harmonizing electricity purchase contracts, and coordinating with relevant state agencies to amend necessary regulations for ensuring that 188bet vipz  power plants fulfill their Block B gas consumption as committed in related gas purchase contracts.

With 188bet vipz highest determination, Petrovietnam will continue to make efforts to execute project components in line with 188bet vipz Prime Minister’s directives, and at 188bet vipz same time, ensure synchronization of progress between stages and project components, to secure 188bet vipz economic efficiency of 188bet vipz project chain and strive to have 188bet vipz first gas flow of 188bet vipz project as soon as possible. 

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