PetroVietnam is about to have a 10 billion USD project with Exxon Mobil

General Director of the Vietnam Oil and Gas Group (PetroVietnam) - Do Van Hau said that it is possible to reach a cooperation agreement with the US energy giant on an electricity - gas project in 2015.

Phase 1 of the project will pump gas from an offshore field in Vietnam to a processing station to power a 1,500-megawatt power plant, Hau told Bloomberg. It will be one of the largest in Vietnam, helping to ease the country’s power shortages.

PetroVietnam's cooperation project with Exxon Mobil is considered to have great potential. Photo: NLVN

Exxon has shown great interest in investing in the mine, as well as the pipeline system and processing plant. PetroVietnam will be the main investor in the power plant, with the total cost of the project “around $10 billion,” Mr. Hau said.

On Exxon's side, company spokesman Kim Jordan also confirmed to the press about the above mentioned cooperation possibility. "Exxon Mobil is negotiating with PetroVietnam, government agencies and businesses to assess the feasibility of developing natural gas fields in central Vietnam," he said.

According to the Vietnamese representative, this power plant will help consume 6,000-8,000 billion cubic meters of natural gas from the gas field in the Central region. This volume is equivalent to two-thirds of the reserves of Thailand and Myanmar.

While the Exxon deal looks promising, other international oil companies have been hesitant to access Vietnam’s gas reserves. Last year, Chevron sought a buyer for its stake in gas fields in the southern sea after years of failed negotiations over the price of its products to PetroVietnam, Mr. Hau said. Chevron’s other partners in the field include PetroVietnam, Mitsui (Japan) and PTT (Thailand).

Mr. Hau said that for the past few months, Chevron has been negotiating with Russian oil giant Rosneft about selling these shares for about 200 million USD. In an announcement on August 20, Rosneft said the company "sees great potential and development opportunities when cooperating with Vietnamese partners."

Yesterday, the Japan Times also reported that Idemitsu Kosan (Japan) discovered gas and ultra-light crude oil (condensate) in two oil blocks off the southern coast of Vietnam. Idemitsu and two other companies that also have shares in these blocks, JX and Inpex, are conducting reserve assessments.

According to VNexpress