Vietnam, Japan Sign Gas Sales Agreement
Vietnamese state-owned PetroVietnam said August 1 it signed an agreement July 31 with Japan’s Idemitsu Kosan and Teikoku Oil to sell gas from its offshore Sao Vang-Dai Nguyet project in the South China Sea.
The blocks containing the Sao Vang-Dai Nguyet project, 05-1b and 05-1c, are close to waters disputed by China. Idemitsu Kosan owns 43.08% stake in the project while Teikoku Oil owns 36.92%. PetroVietnam owns the rest 20%.
Speaking at the signing ceremony, PetroVietnam’s general director said the agreement will help in enhancing Vietnam’s energy security. The project is expected to start commercial gas production by 3Q 2020 with an estimated output of 1.5bn m3/yr, the company said.