By the OGJ Online Staff
HOUSTON, Mar. 1�Operator BP said it will proceed with the $1.3 billion Nam Con Son gas development project off Viet Nam.
Development partner ONGC Videsh Ltd. received approval to make its share of the investment last year (OGJ Online, July 6, 2000). The fields were discovered in 1992-1993.
BP said the planned Nam Con Son development, made up of gas fields Lan Tay and Lan Do on block 6/1 off Viet Nam, is the country's largest foreign investment so far and its first dedicated gas-to-power project.
BP estimates Nam Con Son contains 2 tcf of gas reserves. The gas will be brought ashore by pipeline and used by three power plants to generate electricity for the Ho Chi Minh City area.
The electricity to be generated from the gas represents 40% of the country's current demand.
The two fields will be developed via a steel production platform, a 360-km pipeline, and an onshore gas processing terminal. The pipeline will be able to accommodate future supplies from the Nam Con Son basin, said BP, including Hai Thach field discovered in 1995.
BP owns 26.67% of the project. ONGC Videsh owns 45%, Statoil AS owns 13.33%, and state company PetroVietnam owns 15%.
BP will operate the gas pipeline with 32.67%. Statoil will own 16.33%, and PetroVietnam will own 51%.
BP said detailed design and procurement services for the development were performed by Halliburton Co. affiliate Brown & Root Energy Services. Korean National Oil Corp. will provide the drilling rig.
Hyundai Heavy Industries Co. Ltd., South Korea, will fabricate, transport, install, and hook up the platform, while Kværner Oilfield Products, an affiliate of Kværner AS, is responsible for subsea trees, wellheads, manifold, and the subsea control system. A unit of Coflexip Stena Offshore Group will perform subsea installation, hook-up, and commissioning.
Brown & Root Energy Services also performed detailed design and procurement services for the gas pipeline. European Marine Contractors Ltd. will provide offshore pipeline and flowline installation services.
McConnell Dowell Corp. Ltd., based in Australia, will install the onshore terminal and onshore pipeline segment.