Ca Voi Xanh

Location

The Ca Voi Xanh gas field is situated in block 118 of the South China Sea, approximately 100 km offshore central Vietnam, between the provinces of Quang Nam and Quang Ngai. It lies within the southern Song Hong basin, specifically on the Tri Ton horst structural high.

Discovery and Appraisal

The gas field was discovered in 2011 by the 118-Ca Voi-Xanh-2X discovery well. Subsequent appraisal wells, 118-Ca Voi Xanh-3X and 4X, were drilled in 2012 and 2015, respectively. These wells confirmed the presence of a gas reservoir with a 30% CO2 content in the Da Nang Carbonate formations.

Reserves

The Ca Voi Xanh gas field is estimated to contain approximately 150 billion cubic meters (bcm) of gas reserves. This makes it the largest gas field discovered offshore Vietnam.

Development Plan

The development plan includes several key components:

• Offshore Platform: An offshore platform will be installed in a water depth of about 242 meters to separate gas and water.
• Production Wells: Ten production wells are planned as part of the development.
• Pipeline: An 88 km-long pipeline will transport the produced gas to the shore.
• Gas Treatment Plant: A gas treatment plant (GTP) with a capacity of 737 million cubic feet per day (Mcfd), expandable up to 900 Mcfd, will be constructed onshore to process the gas.
• Power Plants: The processed gas will be supplied to four power plants, two located in the Dung Quat Economic Zone and two in the Chu Lai Economic Zone, generating a total power capacity of about 3 gigawatts. Future expansion may include a fifth power plant or a petrochemical plant.

Project Partners

The project is a joint venture between:

• ExxonMobil: Serving as the operator with a 64% stake.
• PetroVietnam Exploration Production Corporation (PVEP): Holding a 36% stake. Other partners include Vietnam Electricity (EVN) and Sembcorp, which are involved in the development of the gas treatment plant and power plants.

Contractors Involved

Key contractors include:

• Saipem: Completed pre-front-end engineering and design (pre-FEED) work.
• Eni: Involved in design/FEED engineering.
• Seadrill and CP Geo-Services: Other contractors involved in the project.

Economic and Environmental Benefits

The Ca Voi Xanh project is expected to have significant economic and environmental benefits:

• Energy Security: It will improve Vietnam's energy security by providing domestic gas, reducing reliance on imported coal.
• Cost Savings: The project is expected to lower the cost of power by about 20% compared to imported coal.
• Carbon Emissions: It will reduce carbon dioxide emissions by up to 45% compared to coal-fired power plants.
• Economic Growth: The project will drive economic growth and create jobs in central Vietnam, contributing significantly to the country's GDP.

Project Timeline

• 2009: ExxonMobil Exploration and Production Vietnam Ltd. (EMEPVL) signed a Production Sharing Contract (PSC) with PetroVietnam for blocks 117-119.
• 2011: Gas discovery made.
• 2012-2015: Field appraisal and studies conducted.
• 2016: Reserves Assessment Report approved, and the Outline Development Plan was approved.
• 2017: Executed project framework and gas sales agreements.
• 2018: Completed pre-FEED work and issued FEED invitation to tender.
• 2020: Completed front-end engineering and design (FEED) work.
• Expected Final Investment Decision (FID): 2024.
• Expected Production Start: 2028 or later, depending on the finalization of the development plan and regulatory approvals.

Current Status

As of the latest updates, ExxonMobil is working on the final development plan for the Ca Voi Xanh project. However, the project has faced delays and challenges, including regulatory approvals and geopolitical issues. Despite these challenges, the project remains crucial for Vietnam's energy security and economic development.