Japan bank mulls PetroVietnam plan

The Japan Bank for International Cooperation (JBIC) is considering funding the Block B&52/97 project of the Việt Nam Oil and Gas Group (PetrolVietnam) with loans without a government guarantee.

General Director of PetroVietnam Nguyễn Vũ Trường Sơn recently worked with JBIC representatives on the financial arrangements for the project.

According to PetroVietnam, the project, worth nearly US$10 billion, is one of the two largest gas projects in Việt Nam. The capital arrangement for the project is one of the main concerns of foreign partners involved in the project.

The Block B&52/97 project’s oilfield development report was approved by contractors and the State appraisal council, while its environmental impact assessment report was ratified by the Ministry of Natural Resources and Environment. The quantitative risk assessment report was also submitted to the Ministry of Industry and Trade.

As scheduled, the contract will be awarded in June 2018, and the signing of Engineering Procurement Construction and Installation (EPCI) contracts for the project will be done in July.

The Block B&52/97 project includes two sub-projects. The first aims to develop the Block B oilfield, with PetroVietnam owning maximum capital in the project (42.896 per cent). Other investors are PetroVietnam Exploration and Production Corporation (26.788 per cent), Mitsui Oil Exploration Company (MOECO) of Japan (22.575 per cent), and Thailand’s PTT Exploration and Production Public Company Limited (PTTEP) (7.741 per cent).

The second is to build the Block B-Ô Môn gas pipeline having a total length of 430km. PetroVietnam, PetroVietnam Gas Corporation (PV Gas), MOECO and PTTEP have invested in this project.

The Block B&52/97 project is expected to bring ashore 5.06 billion cu.m of gas per year within 20 years, meeting the gas demand of power plants in the south.

It is expected to contribute some $18 billion to the State budget.