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Vietnamese still in floater race for Nam Du & U Minh

Bids from PTSC and Vietsovpetro-HBA still in running for Jadestone Energy project off Vietnam

Two Vietnamese-led bidding groups remain in the contest for the floating production, storage and offloading vessel required for Jadestone Energy’s Nam Du and U Minh gas condensate project in Vietnam.

Jadestone originally received offers from three rival groups led by PetroVietnam Technical Services Corporation (PTSC); Vietsovpetro with HBA Offshore; and Omni Offshore Terminals.

However, sources said that bid clarifications are ongoing with just two competitors — PTSC and the Vietsovpetro-HBA pairing.

Both rivals are understood to be offering conversions but sources said it is not certain that the work will be carried out in a Vietnamese yard given the challenges presented by a full hull conversion.

It is understood that experienced conversion yards in Malaysia and Singapore have received inquiries from the bidders.

The FPSO is to be provided on a leased multi-year basis, along with operations and maintenance of the vessel. The floater, which will include a spread mooring system, will have a storage capacity of up to 350,000 barrels.

Jadestone is aiming to select a preferred supplier and then award the final contract in the fourth quarter, said sources.

The Singapore-based operator intends to place the FPSO alongside two small wellhead platforms on the Nam Du and U Minh fields.

Jadestone is also evaluating bids from Vietnamese contractors for the engineering, procurement, construction and installation of the two wellhead platforms that will be installed using a jack-up drilling rig.

Other offshore elements include two 12-inch diameter interfield pipelines totalling 25.5 kilometres from the two fields to the FPSO and a 34-kilometre 14-inch diameter pipeline from the floater and hot-tapped to the existing PM3-Ca Mau export pipeline, which will have spare capacity.

Jadestone previously has said that Nam Du and U Minh contain 496.8 billion cubic feet of gas and 11 million barrels of condensate on a best estimate contingent resource basis.

The operator —headed by chief executive Paul Blakeley— has a 100% interest but is receptive to enlisting a farm-in partner.

The company recently secured a provisional gas sales agreement with PetroVietnam to underpin the development of the project.

The heads of agreement covered all discovered resources from the two shallow-water fields, and established a mutually agreeable framework for gas sales, priced at the wellhead, and delivered to a tie-in point at a PM3 pipeline.

The agreed contract quantity was 80 million cubic feet per day of gas, with a targeted minimum plateau period of 55 months.

The final gas sales agreement and the final investment decision are targeted for the end of this year.

The Vietnam government last May approved the Nam Du and U Minh outline development plan.

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