On August 31st in Hanoi, Vietnam National Oil and Gas Group (PVN) held the Signing Ceremony of Gas Sale & Purchase Agreement (GSPA) of Su Tu Trang, Block 15-1, phase 2A.

Attending the Ceremony were representatives from Government Office, Petroleum and Coal Department - Ministry of Industry and Trade. For PVN, there were Members of the Boards Nguyen Hung Dung, Dinh Van Son, and Phan Ngoc Trung; Vice Presidents Nguyen Quoc Thap, Le Xuan Huyen and leaders of Divisions of the Group. Attending and witnessing the signing ceremony were leaders of PV GAS, representatives of the Contractors: PVEP, Perenco, KNOC, SK, Geopetrol and the operator of Block 15-1, Cuu Long JOC.

Overview of the Signing Ceremony

Su Tu Trang is a condensate gas field discovered in 2003, Cuu Long JOC has carried out a long-term test production plan for the field in 2012 to gather more information about the long-term production capacity of the reservoir. On August 7th 2015, the Prime Minister approved the field development plan of Su Tu Trang gas production project phase 1. By putting 02 new wells into production, Su Tu Trang Phase 1 had its first gas flow on November 2016. On December 6th 2019, the Prime Minister continuously approved the development plan of Su Tu Trang Phase 2A so as to be the basis for the development of the next Phase 2B.

PVN Member of the Board Phan Ngoc Trung speaking at the ceremony

With drastic direction of the leaders from all Parties, the negotiation of the Phase 2A Su Tu Trang GSPA has been successful with terms and conditions are appropriate to the scope of work and the Project.

PVN leader and Contractors sign the GSPA for Su Tu Trang Phase 2A

Accordingly, it is expected to start the production of condensate, the first commercial gas by the end of 2020 in early 2021 with an annual output of about 0.6 billion m3 of gas and nearly 1 million condensate barrels. The project will contribute significant revenue to the Group and the State Budget as well as guarantees commitments to supply gas in the Southeast region.

Speaking at the ceremony, PVN Member of the Board Phan Ngoc Trung congratulated and acknowledged the efforts of all Parties to have urgently and actively negotiated the terms of the Agreement. Dr. Phan Ngoc Trung also emphasized that the success of the Su Tu Trang phase 2A will contribute significantly to the Group's production output as well as brings economic efficiency to the Contractors and Partners participating in the project.

In addition, with its position, the project will contribute to protecting sovereignty, security of islands and ensuring energy for the country.