Jadestone Energy Inc. (JSE) (Jadestone) has received approval from Vietnam’s Ministry of Industry and Trade (MOIT) of its Outline Development Plans (ODP) for the Nam Du and U Minh gas fields in block 46/07 and block 51, respectively, offshore Southwest Vietnam. This approval serves as a formal starting point for the development of these fields. Front End Engineering and Design (FEED) work, and negotiations of a Gas Sales Agreement (GSA) will begin immediately.
“I am delighted by this key approval, which we accept as a strong vote of confidence in Jadestone’s ability to deliver these offshore gas developments, which are so deeply important for Vietnam,” said Paul Blakeley, President and Chief Executive Officer. “This is a perfect example of one of the central strands of our strategy, which we unveiled 18 months ago, which is to add value by commercialising near-term undeveloped discoveries, especially gas fields with logical ties to the gas-hungry domestic markets in Southeast Asia”.
“The Nam Du and U Minh ODP approvals were achieved by deploying Jadestone’s unique expertise in the region and by utilising some of the key relationships we hold. It’s also further evidence of the success of the rapid strategic reset by the new management team, accelerating the development of resources within the portfolio to create significant value for shareholders”.
The Company’s revised ODPs propose commercialising the Nam Du and U Minh fields, which contain high quality, low CO2gas resource, as stand-alone developments, utilising existing infrastructure including a nearby pipeline to feed the onshore Ca Mau power complex and adjacent 800,000 tonne/year fertiliser plant. As of January 1, 2016, the fields were estimated by LR Senergy to hold recoverable 2C resources of 202 bcf gas and 0.7 million bbls of liquids.
In addition to satisfying various customary conditions specified by the MOIT, the Company intends to complete FEED work and GSA negotiations prior to submitting a Field Development Plan by approximately 3Q 2019. Target for first gas production remains late 2021.
