A joint venture of US-based ExxonMobil and Vietnam Oil and Gas Group (PetroVietnam) has advanced plans for a multi-billion dollar gas exploitation project off Vietnam’s central shore, Rigzone reported.

Vietnam waters. Photo: Pixabay

The venture has awarded an onshore-offshore front end engineering design (FEED) contract for Italian oilfield services provider Saipem for a proposed integrated natural gas-to-power development which treats gas from Ca Voi Xanh (Blue Whale) – Vietnam’s largest gas field, discovered in 2011.

The proposed project consists of an offshore platform, a pipeline to transport the gas ashore, an onshore gas treatment plant and pipelines that feed gas to third-party power plants to generate electricity locally.

ExxonMobil is filing appropriate permits, planning applications and other preparatory work for the proposed development. If approved, ExxonMobil will lead the construction and operation of the project, the oil company said on Wednesday [January 30]. 

“The Ca Voi Xanh project could bring a number of long-term benefits to the country, including cleaner, reliable power to help drive economic growth and improved living standards,” said Liam Mallon, president of ExxonMobil Development Company. 

“If the project goes forward, it is estimated to generate $20 billion in revenue to the Vietnamese government, thousands of local jobs and improved energy security from domestic gas development,” he added. 

Electricity of Vietnam, PetroVietnam, and Singapore-based Sembcorp are in discussions to build and operate the power plants. The proposed base development is expected to generate 3,000 MW of power, equivalent to about 10% of Vietnam’s current total power demand.

Hanoitimes