NTO - Prime Minister Pham Minh Chinh attended the signing and implementation ceremony of the Block B gas

On the morning of October 30, in Hanoi, Prime Minister Pham Minh Chinh attended the signing ceremony and implementation of the Block B - O Mon gas - power project chain between the Vietnam Oil and Gas Group ( Petrovietnam ) and its partners. The Prime Minister believes that after more than 20 years of negotiations, overcoming many difficulties and obstacles, this chain of projects with a scale of nearly 12 billion USD will be implemented as planned and achieve the expected successes.

Also attending were: Minister of Industry and Trade Nguyen Hong Dien; Chairman of the Enterprise Capital Management Committee Nguyen Hoang Anh; Secretary of the Can Tho City Party Committee Nguyen Van Hieu; Secretary of the Kien Giang Provincial Party Committee Do Thanh Binh; Chairman of the Hanoi People's Committee Tran Sy Thanh; representatives of leaders of central departments, ministries, branches and some related provinces and centrally run cities; Ambassadors of Japan and Thailand in Vietnam; leaders of the Vietnam Oil and Gas Group and partners.

Prime Minister Pham Minh Chinh attended the signing ceremony and implementation of the Block B - O Mon gas-power project chain. Photo: Duong Giang/VNA

The Block B gas-power project chain is a domestic gas-power project chain (southern region) including: Block B mine development project (upstream), Block B - O Mon pipeline project (midstream) and 4 gas-power plants O Mon I, II, III, IV in the downstream, with an investment scale of nearly 12 billion USD. The expected gas output is about 5.06 billion m3 of gas/year, supplying the complex of 4 power plants at the O Mon Power Center, with a total expected installed capacity of up to 3,800 MW. This is a key project of the State, expected to bring in revenue of about 30 billion USD for the State and about 11 billion USD for partners.

The project also contributes to strengthening security, national defense, and affirming sovereignty over seas and islands. Along with that, the component projects of the project chain during the construction process will create more infrastructure, create thousands of jobs, and create a shift in the economic structure of many localities. The project chain creates large resources to support the Government in the roadmap to bring net emissions to zero by 2050 as committed at the COP26 Conference.

General Director of the Vietnam National Oil and Gas Group Le Manh Hung reports on the Block B - O Mon gas-power project chain. Photo: Duong Giang/VNA

According to Petrovietnam General Director Le Manh Hung, in the past, due to many objective reasons such as complex terrain, large scale, difficulties in policies and mechanisms regarding investment procedures for downstream power plant projects, gas and electricity consumption, electricity market operations, etc., many important milestones of the chain have been delayed compared to the original plan.

Under the strong direction of the Government, the Prime Minister, and the determination of Petrovietnam and all parties in the Project Chain, many problems have been gradually resolved with the motto "Harmonious benefits, shared risks". In June 2023, recognizing the difficulties at the O Mon III & IV Power Plant projects, the Prime Minister decided to officially assign Petrovietnam as the investor to continue implementing these two projects; marking an important milestone when Petrovietnam participates in investing in the entire Project Chain from upstream to downstream.

Representatives of Petrovietnam's partners in implementing the Block B - O Mon Gas Power Project Chain, including Mitsui Group (Japan), MOECO Group (Japan) and PTTEP Group (Thailand), expressed their gratitude for their attention, facilitation, and resolution of problems in the project chain so that the parties could sign and implement the project; at the same time, they committed to strictly implementing regulations, providing services with the best quality, ensuring safety standards, and world-leading stable data; believing that under the strong and close direction of the Party and State leaders, the parties will be able to effectively implement the project as expected.

Prime Minister Pham Minh Chinh speaks at the signing ceremony and implementation of the Block B - O Mon gas-power project chain. Photo: Duong Giang/VNA

Speaking at the event, Prime Minister Pham Minh Chinh said that the Block B - O Mon Gas Power Project chain is a key state project on oil and gas, the largest gas power project chain in Vietnam at present. The project chain has gone through nearly 20 years of negotiation and investment preparation with many difficulties and obstacles in mechanisms, policies, procedures and processes; slow implementation due to both objective and subjective reasons, but mainly subjective.

The Prime Minister said that, in succession to the Government, the Prime Minister through the terms, the Government leaders, the Prime Minister have surveyed the reality, listened, discussed with partners and reported to General Secretary Nguyen Phu Trong many times for his opinion on this Project Chain. On that basis and with the spirit of "harmonious benefits, shared risks", the Government and the Prime Minister have directed very strongly, resolving all difficulties and problems within their authority; together with the participation of the Ministry of Industry and Trade, the State Capital Management Committee and ministries, agencies, localities, the determination of the Vietnam Oil and Gas Group and Partners, we have had the results of signing and implementing this Project Chain, this is an extremely important milestone, long awaited by the people, the Government and related parties.

The Prime Minister acknowledged, commended and highly appreciated the efforts of the Vietnam Oil and Gas Group and its Investment Partners, the timely support and resolution of the Ministry of Industry and Trade, the State Capital Management Committee and ministries, branches, localities and the Vietnam Electricity Group in promoting and organizing the implementation of the Block B - O Mon Gas and Power Project Chain to achieve today's results.

Prime Minister Pham Minh Chinh speaks at the signing ceremony and implementation of the Block B - O Mon gas-power project chain. Photo: Duong Giang/VNA

According to the Prime Minister, in the strategy and master plan for the overall development of national energy, the Party and State pay great attention to the sustainable development of the oil and gas industry, especially the development of the gas industry. In particular, encouraging investment in oil and gas exploitation on Vietnam's continental shelf, especially in deep water and offshore areas; prioritizing the supply of natural gas exploited from Vietnam's continental shelf for electricity production, industry and civil use. The Block B - O Mon gas and power project chain is a complex of large-scale projects, of strategic importance in balancing energy supply and demand in the period after 2025 in the Southwest region in particular and the whole country in general.

In the energy development strategy to 2025, with a vision to 2050, the Party and State pay great attention to the sustainable development of the Oil and Gas industry. The Vietnamese Government has been and will create favorable conditions, support and encourage the activities of the Vietnam Oil and Gas Group and investors, corporations/companies in the service sector on the basis of ensuring the harmony of legitimate interests of all parties.

"The Party and State hope that the Vietnam Oil and Gas Group, investors in the chain and localities will cooperate and support each other, promote regional linkages to promote the development of the Southwestern economic region," the Prime Minister pointed out.

Prime Minister Pham Minh Chinh listens to a report on the implementation of the Block B - O Mon gas-power project chain. Photo: Duong Giang/VNA

Considering that the Project Chain still has a long and difficult road ahead, with a huge amount of work, the Prime Minister hopes that relevant ministries, branches and competent authorities will always pay attention, create favorable conditions, and resolve existing difficulties and obstacles to support the Project Chain in general and the Oil and Gas Group, the Electricity Group and investors in the chain in particular.

For Japanese and Thai partners and Vietnamese and international oil and gas service contractors, the Vietnamese Government hopes that all parties will support and coordinate with the Vietnam National Oil and Gas Group to carry out difficult and challenging tasks in the coming time. "Vietnam's policy is to always facilitate and protect the legitimate and legal rights and interests of investors, in the spirit of "harmonizing the interests of the State, people and businesses", the Prime Minister affirmed.

Prime Minister Pham Minh Chinh believes that with the tradition of solidarity, proactiveness, creativity, determination, and not being afraid of difficulties of the Vietnam National Oil and Gas Group, along with the trust and long-term cooperation with partners, the Project Chain will be implemented as planned, achieving expected successes to promote the development of the Vietnam Oil and Gas industry, promote rapid and sustainable development in the Mekong Delta region; join hands to continue to actively contribute to the cause of industrialization and modernization of the country; contribute to consolidating and strengthening the cooperative relationship between Vietnam - Japan, Vietnam - Thailand.

Prime Minister Pham Minh Chinh witnessed the signing of the Block B framework agreement. Photo: Duong Giang/VNA

At the ceremony, under the witness of Prime Minister Pham Minh Chinh, leaders of central ministries, agencies, Ambassadors; Petrovietnam and partners signed important documents: Block B Framework Agreement between Vietnam Oil and Gas Group and partners MOECO and PTTEP; Minutes of agreement on the content of the O Mon I Gas Sales Contract between Vietnam Oil and Gas Group and Electricity Generation Corporation 2 (EVNGENCO2); Signing of the award of the EPCI Contract #1 between Phu Quoc Oil and Gas Operating Company and the general contractor consortium.

According to VNA/Tin Tuc Newspaper

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