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Image: Carnarvon
Petroleum
negotiating the supply and installation of suit- Advance earlier this year in exchange for funding
able production equipment in anticipation that Buffalo-10 up to $20mn on a free carry basis.
the Buffalo-10 well would confirm a recoverable Aside from the drilling rig, a number of
oil resource. ancillary contracts have also been signed with
Carnarvon has contracted the VALARIS support vessels, helicopters, drilling service pro-
JU-107 jack-up rig to drill the well, with the rig viders and shore base and logistics providers.
expected to commence drilling operations in Equipment is being mobilised in preparation for
early November. The rig will target the existing drilling operations.
oil column, which was still producing around Carnarvon managing director and CEO
4,000 barrels per day when BHP and Nexen took Adrian Cook said: “Once drilling commences,
it offline in 2004. The field was decommissioned we expect to reach the target in around 35 days
after production fell from a peak of 45,000 bpd. and, given our modelled economics, this well
Carnarvon operates the Buffalo project with a has the potential to be value transforming for
50% stake, after having sold half of its interest to Carnarvon.”
AES signs JV deal for
Vietnamese LNG terminal
PROJECTS & US-BASED AES Corp. has signed a joint ven-
COMPANIES ture agreement with Vietnam’s state-owned Pet-
roVietnam to operate the planned Son My LNG
import terminal in the country.
Son My is one of a number of proposed
LNG projects in Vietnam, which is promoting
increased gas consumption so that it can reduce
the use of dirtier fuels such as coal. It is antici-
pated to come online in 2025 but a final invest-
ment decision (FID) has not yet been taken.
The terminal will have a capacity of
3.6mn tonnes per year following the first
stage of its development, but this will rise
to 9mn tpy in the subsequent stage. It will
deliver gas to two planned power stations,
Son My 1 and Son My 2.
The construction cost is estimated at $1.3bn. While there are many LNG projects in the
Vietnam does not currently import any LNG, pipeline in Vietnam, the expectation is that many
but the government expects the first deliveries in of them will not succeed, given the sheer scale of
2022, when the Thi Vai project is due on stream. capacity that has been proposed. Of these pro-
The government predicts that import volumes jects, only seven have been included in Hanoi’s
will grow rapidly to 5mn tpy by 2025, 10mn Power Development Plan introduced last year.
tpy by 2030 and 15mn tpy by 2035, Vietnamese The government’s LNG drive is also aimed at
Industry Minister Nguyen Hong Dien said ear- supporting a projected surge in power demand in
lier this month. This will support up to 11 GW Vietnam in line with economic growth over the
of gas-fired power generation anticipated to be coming decades. Today the fuel only accounts for
built in the country over the next decade. 13% of the country’s power mix, while coal has a
In a video posted online, he added that the share of 36%, making it the dominant fuel. But the
government was working to fast-track the rate of government projects that the share of gas will rise to
development of LNG infrastructure. 21% by 2030 and 24% by 2045.
Week 38 24•September•2021 www. NEWSBASE .com P7
