BP Vietnam Gas Project To Go Ahead

abarrelfullabarrelfull wrote on 09 Aug 2012 12:50
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28 February 2001

BP announced today that the $1.3 billion Nam Con Son gas project offshore Vietnam is set to go ahead. It is the country's largest foreign investment to date and its first dedicated gas-to-power project.

The project centres around the development of two trillion cubic feet of offshore gas which will be brought ashore by pipeline and used by three generating plants to provide electricity primarily for consumption in the Ho Chi Minh City area. The electricity generated from this gas represents approximately 40% of Vietnam's current demand.

Construction will begin soon on a steel production platform, which will be installed over the reservoir, and a new onshore gas processing terminal, which in turn will be fed by a 360 km pipeline. The pipeline is designed to accommodate future gas supplies from the Nam Con Son Basin, including the Hai Thach field, discovered by BP in 1995.

Attending the project launch in Hanoi, BP's chief executive for exploration and production Richard Olver said: "This is a very significant step for BP and Vietnam. It provides Vietnam with a clean, reliable source of energy to underpin its economic and industrial growth. Gas is a major part of BP's growth strategy of which Vietnam will play a significant part in the years ahead.”

Commenting on behalf of the British Government, Secretary of State for Trade and Industry Stephen Byers said: "I am delighted to offer my congratulations to all the parties concerned. This is a hugely exciting development. At $1.3 billion, it is the largest single foreign investment in Vietnam, and one, which I hope, will encourage other British companies to follow in BP's footsteps.

"Over the years many British Ministers and officials have provided encouragement for this vital project, in which BP is playing such a key role. I am glad too that UK companies will be supplying some of the equipment. I wish the contractors every success in the speedy implementation of the project.”

Notes:

The two gas fields, Lan Tay and Lan Do, were discovered in 1992-93. BP is operator with 26.67% equity. India's Oil and Natural Gas Corp. holds 45% and Statoil 13.33%. State company PetroVietnam holds the remaining 15%

BP will operate the gas pipeline with 32.67% equity. Other partners are Statoil with 16.33% and PetroVietnam with 51%

The main construction and procurement contracts are as follows:
Block 06.1

Detailed design and procurement services: Brown and Root Energy Services (Singapore). This work has been completed.
Drilling rig: Korean National Oil Corporation.
Platform fabrication, transportation, installation and offshore hook-up: Hyundai Heavy Industries (Korea).
Subsea trees, wellheads, manifold and subsea control system: Kvaerner Oilfield Products (UK).
Subsea installation, hook-up and commissioning: Coflexip Stena (Australia).

Nam Con Son Pipeline Contracts

  • Detailed design and procurement services: Brown and Root Energy Services (Singapore). This work has been completed.
  • Linepipe: Ilva (Italy).
  • Offshore pipeline and flowline installation: European Marine Contractors (UK)
  • Onshore terminal and onshore pipeline installation: McConnell Dowell (Australia).

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