Viet Nam National Oil and Gas Group (PetroVietnam) on July 31 signed a number of trade agreements on exploiting the Sao Vang - Dai Nguyet project.

The agreements included gas sales purchase agreement; an agreement on connection and services; and gas sales agreement of the Sao Vang - Dai Nguyet gas project, blocks 05-1B and 05-1C.

The stakeholder participation in the Petroleum Sharing Contract (PSC) includes Idemitsu Kosan Co Ltd with 43.08 per cent and the operator; Teikoku Oil (Con Son) Co Ltd, 36.92 per cent; and PetroVietnam, 20 per cent.

Speaking at the signing ceremony, PVN’s general director Nguyen Vu Truong Son said the signing of trade agreements to exploit oil and gas fields is very significant. The production of oil and gas from Sao Vang - Dai Nguyet field will contribute to the supply of gas for the country’s economic development, especially the socio-economic development of the southeast region.

Sao Vang - Dai Nguyet gas field is located in Nam Con Son Basin, approximately 300km south-east offshore Vung Tau City at about 110-130m water depth.

The success of the Sao Vang - Dai Nguyet gas project will compensate for the shortage of gas as the other gas fields have reduced production; and play an important part in securing the country’s energy, Son emphasised.

Prior to this, on August 4, 2016, the Prime Minister issued Decision No 1550/QD-TTg approving petroleum reserves of Sao Vang - Dai Nguyet field, as the basis for the development of the field.

On March 7, 2017, the Ministry of Industry and Trade issued Decision No.706/QD-BCT approving the outline development plan.

Nine months later, the Prime Minister issued Decision No 1996/QD-TTg approving the field development plan. Accordingly, Sao Vang - Dai Nguyet field is expected to start exploiting the first oil and gas line for trade in the third quarter of 2020 with an estimated output of 1.5 billion cu.m of gas per year and 2.8 million barrels of crude oil and condensate per year. — VNS