Attending with Prime Minister Nguyen Tan Dung were also Minister of Industry and Trade Vu Huy Hoang, Deputy Minister of Industry and Trade Cao Quoc Hung; Representatives of Ministries, Sectors, and Central Government; Representatives of leaders of Kien Giang, Hau Giang, Ca Mau, Can Tho provinces...

On the Vietnam Oil and Gas Group side, there are General Director Nguyen Vu Truong Son, comrades in the Board of Members, Board of General Directors, leaders of specialized departments, leaders of units participating in the Phu Quoc project chain POC,  SWPOC, PTSC, PV GAS, PVC...

Reporting to Prime Minister Nguyen Tan Dung and the working group, General Director of Nguyen Vu Truong Son Group said; The goal of the project chain is to exploit and collect gas sources from Block B, 48/95 & 52/97 with a total expected recovery reserve of 3.78 billion cubic feet (about 107 billion m3) and 12.65 million barrels of condensate, gas output brought ashore about 5.06 billion m3/year and lasting 20 years from 2020 - 2040 to supply gas to power plants in the area. Kien Giang and O Mon regions to meet the electrical energy needs of the Southern region in the period after 2020 in general and the Southwest region in particular.

Block B gas project chain includes component projects: Block B, 48/95 & 52/97 field development project and Block B - O Mon gas pipeline project. Accordingly: Block B mine development project has a total investment cost in 20 years: 6.8 billion USD.; Investor: Vietnam Oil and Gas Group (42,896%); PVEP (26,788%); MOECO (22.575%); PTTEP (7.741%) is operated by Phu Quoc POC - Branch of Vietnam Oil and Gas Group; The project will be put into operation from the second quarter of 2020; including main technology and equipment items: 01 Central Technology Rig and 46 exploitation rigs; 01 housing platform; 01 ship containing condensate; about 750 exploitation wells.

The second is Block B - O Mon gas pipeline project with total investment: 1.2 billion USD; Investor: Vietnam Oil and Gas Group/PVGas/Contractor MOECO (Japan) & PTTEP (Thailand) are investors in the form of joint venture; According to plan, the project will be put into operation from the second quarter of 2020; The total length of the pipeline is 431 km with a design capacity of 20.3 million m3, of which the marine pipeline is about 295 km long, 28 inches in diameter transporting gas from Block B to the Landing Station in An Minh/Kien Giang, the 37 km 18 inch branch pipe connects from KP209 to Mui Tram Landing Station to supply gas to the PM3 - Ca Mau pipeline; The onshore pipeline has a length of about 102 km, a diameter of 30 inches running through Kien Giang and Can Tho provinces and the route is to supply gas to power plants at Kien Giang Power Center and O Mon Power Center in Can Tho; Along the pipeline route there will be a Landing Station, a Line Shutoff Valve Station, Kien Giang Gas Distribution Station (GDS) and O Mon Gas Distribution Center (GDC).

General Director of the Group Nguyen Vu Truong Son affirmed: In parallel with the process of implementing the Block B project chain, according to Decision No. 428/QD-TTg dated March 18, 2016 of the Prime Minister approving the "National electricity development plan for the period 2011 - 2020 with a view to 2030", Vietnam Oil and Gas Group will invest in power plants at the Power Center in Kien Giang and The Electricity Group will invest in power plants at O Mon Electricity Center.

The project is an important milestone in continuing to expand the infrastructure of the gas industry in the Southwest region, realizing the "Master plan for development of Vietnam's gas industry for the period up to 2015, orientation to 2025" approved by the Prime Minister and meeting the goals of the "Strategy for development of Vietnam's oil and gas industry until 2025 and orientation to 2035".

Development of the project chain will create major gas infrastructure comparable to that in southeastern Vietnam. Once operational, the project will contribute to national energy security, supplement the gas supply shortfall in the PM3 – Ca Mau pipeline system, and supply power plants in Kien Giang and O Mon/Can Tho in accordance with the approved revised Power Development Plan VII. It will also contribute to economic development and growth across the Southwest region, particularly in Kien Giang and Can Tho.

Block B natural gas supplied to power plants is a clean and environmentally friendly fuel source compared to coal power plants. In addition, this gas source will contribute to reducing the pressure on foreign currency demand to import FO, DO, and LPG fuels.

According to preliminary estimates within 20 years of operation, revenue sources from the project: Upstream project: expected to pay about 18.3 billion USD to the budget; Pipeline project: expected budget contribution is about 930 million USD (Corporate income tax is about 330 million USD, VAT is about 600 million USD). In addition, the project also contributes about VND 400 billion in revenue from import taxes to the budget during the construction process.

Speaking at the ceremony, Chairman of the People's Committee of Kien Giang Province, Mr. Pham Vu Hong affirmed that Kien Giang province will provide maximum support to the investor of Vietnam Oil and Gas Group throughout the project implementation process. With such a scale of the project, we realize that this is a very important project for Kien Giang Province and there are many difficulties and challenges not only for investors and construction contractors of the project but also a huge challenge for Kien Giang Province in the future. Approving/adjusting the Provincial planning, handing over the site to the Project and other procedures. Kien Giang Province commits to accompany and best support the Project such as handing over the site on schedule, supporting land clearance and other procedures within the scope and authority of Kien Giang Province so that investors and project contractors can implement the project in the fastest and most effective way to ensure the goals set out by the Government.

Giving a directive speech, Prime Minister Nguyen Tan Dung highly appreciated the urgency of the leaders of the Petroleum Group in launching the Block B - O Mon gas project chain to ensure gas supply for power plants in the Southwest region already included in the adjusted Power Plan VII. The construction of the Block B - O Mon gas project chain will be a very important completion step for the entire gas infrastructure complex in the Southwest region. When completed and put into operation, the Block B - O Mon gas project chain will play an important role in contributing to the socio-economic development of the Southwestern provinces, realizing the "Master plan for development of Vietnam's gas industry for the period up to 2015, orientation to 2025" and meeting the goals of "Strategy for development of Vietnam's oil and gas industry until 2025 and orientation to 2035".

To create favorable conditions for the successful implementation of the project chain, Prime Minister Nguyen Tan Dung requires Vietnam Oil and Gas Group - first of all, as an investor - along with the project chain's contractors to uphold responsibility, seriously implement commitments in the Contract and comply with State regulations on construction investment to ensure that the project is put into operation on schedule and with good quality. For Ministries and sectors, directly the Ministry of Industry and Trade, must preside over and coordinate with relevant Ministries/Industries and Kien Giang province and Can Tho city to support investors and contractors in removing difficulties, obstacles, and promoting project progress with the common goal of ensuring progress, construction quality, safety and efficiency of the project chain including power plant projects. gas invested by EVN at O Mon Power Center as approved. On the part of Vietnam Electricity Group (EVN): focus resources to deploy investment in construction of power plants at O ​​Mon Power Center to ensure synchronous operating progress with gas supply progress of Block B - O Mon gas project chain.

Prime Minister Nguyen Tan Dung reminded that when implementing a project, localities must proactively coordinate with investors and oil and gas units in the area to cooperate and support and take care of people's lives. Prime Minister Nguyen Tan Dung emphasized: I acknowledge the efforts of the entire Oil and Gas industry and local authorities. I believe that, under the direction and efforts to overcome challenges of the leadership and staff of units in the Vietnam Oil and Gas industry, the Block B - O Mon gas project chain will be completed and put into use on schedule, bringing good achievements to the entire industry and successfully carrying out the political tasks assigned by the Party and State.

On this occasion, representing Vietnam Oil and Gas Group, General Director of the Group Nguyen Vu Truong Son donated 1 billion VND to the social security program of Kien Giang province.

Source: PVN