PetroVietnam Technical Services awarded $176m equipment contract for Sao Vàng-Đại Nguyệt gas project

Update: November, 06/2018 - 16:49
The Songa Murcur rig at the Sao Vàng oil field. — VNA/VNS Photo
Viet Nam News

HÀ NỘI — The Malaysia Vietnam Offshore Terminal (MVOT), a joint venture between PetroVietnam Technical Services Corp and Malaysia’s MIBS Bhd, has won a US$176 million contract to provide equipment for Idemitsu Kosan to develop the Sao Vàng-Đại Nguyệt gas project.

Under the seven-year contract, MVOT will provide a floating storage and offloading (FSO) vessel to the Japanese firm for the development of the gas and condensate fields, the Việt Nam Oil and Gas Group (PetroVietnam) said on Tuesday.

The FSO has a capacity to store 700,000 barrels of condensate, double Idemitsu Kosan’s minimum storage requirement of 350,000 barrels. It is slated to receive the first condensate flows in July 2020.

The FSO is designed with housing for 55 technical and operational personnel and a helicopter landing gear with the latest UK CAP 437 standard, capable of receiving Airbus H-225 or equivalent.

The contract can be extended another eight years.

Lê Mạnh Cường, CEO of PetroVietnam Technical Services Corp, said: “Winning the contract to provide the FSO vessel for the Sao Vàng-Đại Nguyệt gas development has proven the company’s capacity in implementing high-tech and complex petroleum projects at a very competitive cost.”

The Sao Vàng-Đại Nguyệt gas fields are located in Blocks 05-1b and 05-1c, about 350km southeast of Việt Nam’s coast. Idemitsu Kosan is the operator of the offshore development with an ownership of 43.08 per cent.

Teikoku Oil (Con Son) Co Ltd owns 36.92 per cent and PetroVietnam holds the remaining 20 per cent.

Estimated output of the gas fields is about 1.5 billion cubic metres (m3) of gas per year and 2.8 million barrels of crude oil and condensate per year.

Late in August this year, PetroVietnam signed a gas sale-purchase agreement with the developers of the field. — VNS