A series of commercial agreements under the Block B - O Mon gas and power project chain were signed.

On March 28, Vietnam Oil and Gas Group ( Petrovietnam ) and its partners held a signing ceremony for a series of commercial agreements for the Block B - O Mon gas and power project chain.

Representatives of parties involved in the Block B - O Mon gas-power project chain signed commercial agreements.

Speaking at the ceremony, Mr. Le Manh Hung - Chairman of the Board of Directors of Petrovietnam affirmed that the Block B - O Mon gas and power project chain is very large and important to the country, having a great influence on the country's economic development and energy security. This is also the largest and most important project of Petrovietnam with the total investment scale of the project chain reaching nearly 12 billion USD, including many component projects (upstream development projects, pipeline projects and downstream power plant projects), with the participation of many investors (from foreign partners from Japan and Thailand such as MOECO, PTTEP, Marubeni to Vietnamese investors such as Petrovietnam, PVEP, PV GAS, EVNGENCO2, WTO...

In 2023, after a long period of slow implementation, with the close direction and determination to promote project implementation of the Government, the Prime Minister , relevant ministries, branches and Petrovietnam and partners, the project has overcome decisive difficulties and achieved important progress. On October 30, 2023, Petrovietnam and all Parties in the Project Chain, the relevant Parties in the Project Chain signed the Framework Agreements, the Minutes of Agreement and awarded the upstream EPC Package No. 1. On that basis, on March 28, 2024, Petrovietnam and the Parties agreed to sign the Agreements for the Project Chain. The successful signing of the agreements for the Block B Gas and Power Project Chain contributes to ensuring the overall progress of the entire project chain.

“The project chain will be an important resource, a stepping stone to support the implementation of the Vietnamese Government's commitment at COP26 with the goal of reducing carbon emissions to respond to climate change, and the Power Plan VIII is built towards a greener, cleaner energy system,” Mr. Le Manh Hung emphasized.

The Block B - O Mon project chain, when officially implemented, will create a large number of jobs for a series of Vietnamese oil and gas enterprises.

Agreements signed at the ceremony include:

Firstly, the Gas Purchase Agreement (GSPA) of Block B with the terms of commitment to purchase and sell Block B gas between the Mine Owner, including the Sellers, Vietnam Oil and Gas Group, Oil and Gas Exploration and Production Corporation, MOECO Company (Japan), PTTEP Company (Thailand), and the Buyer (Vietnam Oil and Gas Group). The amount of Block B gas committed by the Parties to be delivered and received each year is about 5.06 billion m3 during the Stabilization Period.

Second, the Vietnam Oil and Gas Group hires the Transporters (including the Parties: Vietnam Gas Corporation, Vietnam Oil and Gas Group, MOECO Company, PTTEP Company), according to the terms and conditions committed in the Gas Transportation Agreement (GTA) of Block B, to transport the entire amount of Block B gas (about 5.06 billion m3/year) to shore, through the landing station in Kien Giang and the onshore pipeline from Kien Giang to O Mon (Can Tho).

Third, the Connection, Operation and Service Agreement (TOSA) between the Mine Owners (including the Parties: Petrovietnam, PVEP, MOECO, PTTEP) and the Transport Owner (including the Parties: PV GAS, Petrovietnam, MOECO, PTTEP).

This is a service contract to connect the Carrier's equipment to the Block B gas exploitation platform and the Mine Owner will be responsible for providing related services to support the Carrier throughout the contract term.

After reaching the shore, the amount of gas from Block B will be allocated and supplied by Petrovietnam to the Power Plants in the O Mon area. The Block B gas sale contract between the Seller (Vietnam Oil and Gas Group) and the Buyer (EVNGENCO2) will supply part of Block B gas to the O Mon I Power Plant, with an annual gas volume of about 1.265 billion m3 during the stabilization period.

On behalf of Petrovietnam's board of directors, General Director Le Ngoc Son hopes to continue receiving support from Vietnam Electricity Group (EVN), as the Investor of O Mon III and O Mon IV Power Plants, in the process of negotiating and agreeing on Power Purchase Agreements, as well as coordinating with the competent State agencies in amending the necessary Circulars to ensure that Power Plants using Block B gas consume all the gas as committed in the related gas purchase agreements.

Currently, many financial institutions assess that, with the efforts of the Government, ministries, sectors and relevant parties, the Block B - O Mon gas-power project chain will receive the Final Investment Decision (FID) in the second half of this year. Thereby, it is expected to open a new development period for the entire Vietnamese oil and gas industry, especially for upstream enterprises such as the Oil and Gas Drilling and Well Services Corporation (PV Drilling, stock code PVD), Vietnam Oil and Gas Technical Services Corporation (stock code PVS) ...

According to Industry and Trade Magazine

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