PetroVietnam, Chevron Sign Gas Price-Defining Deal for Block B

The state-run Vietnam Oil and Gas Group (PetroVietnam) and U.S. oil giant Chevron Corp. have signed an in-principle agreement to define gas price for their gas production project costing US$4 billion in Block B, offshore southwestern Vietnam.

 

The two sides will define the price once Front End Engineering Designs (FEEDs) of the gas production project and of the US$800-million Block B-O Mon gas pipeline project in the southern city of Can Tho completed.

 

Chevron which holds a 43% stake in the gas pipeline will build the 246-kilometer offshore pipeline while PetroVietnam will construct the 152-kilimter ashore pipeline in late 2009.

 

Once fully operational in July 2011, the pipeline will transport between 16 million cubic meters and 18.3 million cubic meters of gas a day pumped from Block B to feed Ca Mau Gas-electricity-nitrogen fertilizer complex, 2,640 MW O Mon power center, and industrial complexes in localities where the pipeline runs across. (Labor)