AIM-listed Jadestone Energy has announced the signing of the gas sales agreement for the supply of gas from the Nam Du / U Minh discoveries offshore Vietnam.
T. Mitch Little, Chief Executive Officer of Jadestone, commented:
'The execution of this agreement is a pivotal moment for Jadestone. After years of dedicated effort, we are now in a position to deliver the Nam Du/U Minh development, which will materially strengthen our portfolio while supporting our growth ambitions. With all key commercial and technical approvals now in place, and recent key hires into the Jadestone Vietnam project delivery team, we are now focused on rapidly progressing towards the project execution phase. Our near-term priorities are to conclude the bid evaluation for the FPSO and field infrastructure, and award their respective contracts during the second half of this year.
We thank all of our stakeholders in Vietnam for supporting the recent progress on Nam Du/U Minh, and we look forward to working with them to deliver the development safely and efficiently. Over the project life, we expect that the development and production phases will generate significant local employment opportunities, material contract awards to local Vietnam companies, and hundreds of millions of dollars in government revenues. The Nam Du/U Minh project also supports Vietnam’s strategic plan and net zero ambitions, prioritizing sovereign resources to enhance Vietnam’s energy security and economic growth alongside the transition to lower emitting sources of fuel.'
Nam Du/U Minh GSPA
The Nam Du/U Minh discoveries are located offshore southwest Vietnam in shallow waters, with production targeted to commence in late-2028, as per the approved field development plan previously announced on 18 March 2026.
The finalized GSPA sets out the terms on which gas will be supplied from the Nam Du/U Minh fields offshore Vietnam to PV Gas, a subsidiary of Petrovietnam, the state-owned national energy industry group of Vietnam. Key elements of the GSPA include:
- A daily contract quantity ('DCQ') of 80 MMscf/d, or ~13,000 boe/d (gross).
- Maximum DCQ set at 110% of DCQ.
- Take-or-pay is set at 90% of DCQ, equivalent to approximately 26 Bscf per year during the plateau period.
- The wellhead gas price is comparable to historical Vietnam gas imports and subject to fixed annual escalation.
Combined, the Nam Du/U Minh fields contain independently audited gross 2P reserves of 32 MMboe. Jadestone estimates up to 1.5 trillion cubic feet of gross unrisked gas in place from seismically supported prospects within the existing licenses, much of which lies in close proximity to Nam Du/U Minh, representing low risk upside potential which could extend and/or increase plateau production from the initial development.
Source: Jadestone Energy
