A PTSC offshore oil rig. — Photo ptsc.com.vn

Phú Quốc Petroleum Operating Company (PQPOC) has signed an engineering, production, construction and installation (EPCI 1) contract for a Block B project to American contractor McDermott and PetroVietnam Technical Services Corporation (PTSC).

PQPOC, a subsidiary of PetroVietnam, oversees the upstream segment of the Block B-Ô Môn gas-to-power project.

The EPCI 1 contract, valued at around US$1.1 billion, encompasses design, technology equipment supply, construction and installation work.

PTSC said that its contract is valued at approximately $550 million, following the Letter of Limited Authorisation (LLOA) signed in October 2023.

Vietcap Securities JSC (VCSC) said that this signals PetroVietnam's earlier-than-expected final investment decision.

The progress of Ô Môn 3 and 4 is slightly ahead of schedule. Ô Môn 3 is now expected to begin commercial operations in the fourth quarter of 2029 (previously 2030), while Ô Môn 4 will come online in the fourth quarter 2027 (previously 2028).

However, Ô Môn 2 is slightly delayed compared to its initial plan, with commercial operations now projected to begin in the first quarter of 2028 (previously 2027). Overall, the target to receive the first gas flow in 2027 remains on track.

VCSC expects the forthcoming full contracts for the remaining EPCI 2, 3 and 4 packages, estimating a value of approximately $1 billion for PetroVietnam in the near term.

VCSC forecasts that with these contracts, PTSC's current profit in 2024 and 2025 might reach VNĐ1.121 trillion (up 9 per cent year-on-year) and nearly VNĐ1.6 trillion (up 39 per cent year-on-year) respectively. — VNS