Huge gas project expected to contribute more than $19 billion to state budget

Around $18.3 billion of the estimated contribution is expected to come from the project's three blocks. A natural gas pipeline is hoped to contribute some $930 million while import duties from construction are estimated at $17.7 million. PetroVietnam did not provide estimated figures for other component projects.

The national oil and gas group on Sunday resumed activities at the Block B gas project following years of delays due to gas price issues. PetroVietnam inked deals in June last year to take over the three oil and gas blocks by acquiring Chevron's stakes in the blocks and gas pipeline. These include a 42.4 percent stake in blocks B and 48/95, 43.4 percent in Block 52/97 and 28.7 percent of non-operated working interest in the Block B-O Mon pipeline project. 

PetroVietnam plans to invest $6.8 billion by 2040 to construct a central processing platform, 46 wellhead and hub platforms, about 750 wells, a floating storage and offloading vessel and living quarters. A 431km gas pipeline worth $1.2 billion will also be constructed to transport 20.3 million cubic meters of natural gas per day to fuel several power plants in the south with total capacity of 3,660 MW.

These projects will help PetroVietnam and other investors pump about 5.06 billion cubic meters of natural gas per year from 2020-2040. The three blocks in the project are estimated to contain 107 billion cubic meters of natural gas and 12.65 million barrels of condensate.

Joining PetroVietnam in blocks B and 48/95 are Japan's Mitsui Oil Exploration Co. Ltd. (25.62 percent), PetroVietnam Exploration and Production (23.5 percent) and Thai PTT Exploration and Production (8.5 percent). The other investors in block 52/97 are PetroVietnam Exploration and Production (30 percent), Mitsui Oil Exploration Co. Ltd. (19.6 percent) and PTTEP (7 percent).