Two agreements on the Blue Whale project

By Theo |

(QNO) - A project framework heads of agreement and a gas sales heads of agreement for the Ca Voi Xanh (Blue Whale) were signed by PetroVietnam Exploration Production Corporation (PVEP) under PetroVietnam (PVN) and ExxonMobil Vietnam in Ha Noi city on January 13th.

: Phó Thủ tướng Chính phủ Vương Đình Huệ phát biểu tại Lễ ký.
Vietnam’s Deputy Prime Minister, Vuong Dinh Hue gives his speech at the agreement signing ceremony.

Speaking at the event, Deputy Prime Minister Hue appreciated efforts made by PVN and its US partner since they signed the production sharing contract in 2009, including the completion of the latest framework agreements. The Blue Whale project is considered as the largest of its kind in Vietnam at present, supplying a huge source of gas, making a motivation for petrochemical industry, power production and economic development for the localities.

In the first phase before 2025, the project is expected to supply about 7.2 billion cubic meters of gas a year for four power plants with a total capacity of 3 GW, including two plants in Chu Lai Open Economic Zone (Quang Nam province) and two plants in Dung Quat Economic Zone (Quang Ngai province). Beside, the output of the expanded phase will be yearly 8.8 billion cubic meters of gas which is enough for petrochemistry or the fifth power plant.  The total revenue of this project will expectedly be 50 billion USD, including 16 billion USD for the state coffers.

Ký kết Thỏa thuận khung Phát triển dự án mỏ Cá Voi Xanh.
The agreement signing ceremony.

According to Deputy Prime Minister, the Government and the concerned ministries will direct  Vietnam Electricity (EVN) and Petrovietnam (PVN) to quickly reach a framework agreement on buying and selling electricity in order to ensure comprehensive development of the Blue Whale gas and electricity complex. EVN and PVN have also been tasked to select investors for four power plants that will be fuelled with gas from the Blue Whale field. “To achieve further success in the future, ExxonMobil and PVN need to make every effort to pump the first gas flow by the end of 2023,” the Deputy Prime Minister Hue said.

The project at block 117-119 is off the Vietnam’s central coast, about 100km off Quang Nam beach in the east. It is under the plan of the central gas-power center approved by the Government of Vietnam.

By Theo