On 17/02/2017, in Ba Ria - Vung Tau province, PVEP and PV GAS held the signing ceremon of the "Agreement in principle to develop Su Tu Trang well - Phase 2", as part of Lot 15-1 oil and gas Contract of Cuu Long basin on Vietnam's continental shelf”.  
From PetroVietnam Exploration Production Corporation (PVEP), Dr. Hoang Ngoc Dang, Chairman of the Board of Directors and Dr. Ngo Huu Hai, CEO were present at the ceremony.
PetroVietnam Gas (PV GAS) saw the attendance of Dr. Le Nhu Linh, Chairman of the Board of Director; and CEO of PV GAS Duong Manh Son.
Also in attendane were leaders, representatives of PVN departments, PVEP and PV GAS Boards of Directors, Executive Boards, Party committees, Unions, and departments. 

CEO of PVEP Ngo Huu Hai and CEO of PV GAS Duong Manh Son signing the Agreement in principle to develop Su Tu Trang well - Phase 2

Su Tu Trang Well - Phase 2 will see the construction of additional extraction, central processing platforms and pressurized pumps to raise annual gas extraction levels to 1.5 billion m3/annum. Operation is expected for 2020, lasting past 2035. Gas streams from Su Tu Trang Well - Phase 2 will not go through Bach Ho pipelines, but rather piped directly onshore thorugh the Nam con Son 2 - Phase 2 pipeline, travelling a 117km offshore, and 39km onshore trip. This will be the main gas line for Dinh Co 2 Gas treatment plant (construction expected to finish in Q4/2020) with annual capacity of 300,000 tons  of LPG, 170,000 tons of condensate and an additional 200,000 tons of ethanol to supply Long Son Refinery.
Su Tu Trang Well is a major gas and condensate well under Lot 15-1, lies to the Southeast of the Su Tu well cluster. Su Tu Trang Well - Phase one currently employs a single extraction platform connected to the Su Tu Vang central processing platform. PV GAS is responsible for transporting onshore the gas from Su Tu Trang Well.
With the signing of the in-principle agreement, PV GAS will invest indirectly in Su Tu Trang Well - Phase 2. Through PVEP (currently the Project's major shareholder - with upto 50% of the share in Lot 15-1 contract), PV GAS will finance 25% of the Project's total current investment valued at 500 million USD; and through PVEP push for the completion of the Project and be involved in technical aspects as well. Su Tu Trang Well - Phase 2 is expected to start streaming onshore in Q4/2019 with a life cycle of nearly 20 years, promising extraction of over 24 billion m3 of gas and tens of million tons of condensate.

Dr. Hoang Ngoc Dang, Chairman of the Board of Directors of PVEP

Speaking at the ceremony, Dr. Hoang Ngoc Dang, Chairman of the Board of Directors of PVEP considers PVEP as the supplier, PV GAS as the distributor; both partners are indispensable to the development o the gas industry. In the future, PVEP and PV GAS will work together to resolve many issues related to the extraction and distribution of gas, including the price of gas. The signing of the cooperation agreement between the two partners will be the first step to consolidate and promote cooperation between two of PVN's key subsidiaries, translating PVEP's strategic sustainable development goal for the next 5 years into reality. 
The financial injection by PV GAS to develop Phase 2 of Su Tu Trang well will help ensure the on-schedule development of Su Tu Trang Well, helping PV GAS to pipe more gas through the Nam Con Son 2 – Phase 2 pipeline, which is also an important project for PV GAS in the near future, allowing for stable provision of gas for the Southeastern region and ensuring energy security. 
Dr. Hoang Ngoc Dang expressed confidence the ceremony is a start of a more comprehensive cooperation program between the two partners. Dr. Hoang Ngoc Dang hope that the parties will actively pursue implementation of the various work items, and soon see specific, initial results following the signing of the agreement. 

Dr. Le Nhu Linh, Chairman of PV GAS Board of Director

Dr. Le Nhu Linh, Chairman of PV GAS Board of Directors shared: This agreement is very important to PV GAS. PVEP is a longtime trusted company for PV GAS, particularly given how PVEP manages its domestic extraction activities. We are pleased to see PVEP's pledge to represent PV GAS in negotiations with foreign partners during not only Phase 2 of the extraction but also for Lot 15-01. PV GAS hopes that with the technical assitance and expertise of PVEP, and the tireless efforts of its staff, both sides will soon agree on an investment cooperation agreement and report to be submitted to PVN. What's most important is that both partners have identified and recognized the challenges and the necessary steps ahead to come up with appropriate solutions. 

Source: Petrotimes