As at 31 December 2017, the Block 51 and Block 46/07 PSCs contained aggregate 2C gas resources of 496.8 bcf and 2C liquids resources of 11 mmbbl, both 100% net to Jadestone, of which the U Minh field (Block 51) and Nam Du field (Block 46/07) comprise aggregate 2C gas resources of 171.3 bcf and 2C liquids resources of 1.6 mmbbl, both 100% net to Jadestone. Upon project sanction, the Nam Du and U Minh 2C resources will be booked as 2P reserves.
Jadestone plans to jointly develop the Nam Du and U Minh gas fields. The proposed development plan involves two unmanned wellhead platforms, one located at each field, with produced fluids delivered to a central floating production, storage, and offloading (FPSO) vessel at Nam Du. Processed gas from Nam Du and U Minh would be exported via the nearby existing 18 inch pipeline owned by Petrovietnam that transports gas from the PM-03-CAA Block to the Ca Mau power and industrial complex in southern Vietnam. Condensate would be exported by shuttle tanker. Gas production from the PM-03-CAA Block is currently in decline, and with no additional gas resource available, will result in sufficient pipeline ullage that Jadestone intends to utilise.
A field development plan for the Nam Du and U Minh fields was submitted in 2019. However, in the absence of Vietnamese Government approvals which had been expected in Q1 2020 and, in light of market conditions at the time, the Company decided to delay this project as part of a reduced 2020 capital programme following the onset of the COVID-19 pandemic.
In mid-2022, Jadestone began direct negotiations with the end-user of gas from its offshore discoveries. These discussions are still at an early stage, but support the prospect of meaningful progress towards commercialising the significant and strategic resource in Jadestone’s licences. Development of this resource would lessen Vietnam’s future dependence on expensive imports of natural gas and contribute towards the country’s stated goal of net zero greenhouse gas emission by 2050.
At present, no development plan has been submitted for the Tho Chu gas discovery and contingent resources are consequently classified as development unclarified. The portion of the Block 51 PSC license area containing the Tho Chu discovery is currently being held in a suspended development area (‘SDA’) status. In September 2021, Jadestone was granted an extension to the Tho Chu SDA status to June 10, 2023.