April 02, 2024 [World Oil]- Mitsui & Co., Ltd., through its wholly owned subsidiary Mitsui Oil Exploration Co., Ltd. (“MOECO”), has made a final investment decision and concluded related contracts together with its business partners regarding an integrated development project (“Block B Project”) encompassing an upstream gas field and a pipeline linking it to a gas-fired thermal power plant complex.
The business partners include the Vietnam Oil and Gas Group (“PVN”), a Vietnamese national oil and gas company, PetroVietnam Exploration Production Corporation Limited (“PVEP”), PetroVietnam Gas Joint Stock Corporation (“PV Gas”), and PTT Exploration and Production Public Company Limited (“PTTEP”), a Thai national oil and gas company.
The Block B Project will be the next-generation core business for MOECO. MOECO has been participating in this highly competitive project from the exploration phase and the project is expected to yield stable earnings in the long-term.
Production capacity is estimated to be 490 MMcfd, with production scheduled to begin by the end of 2026. In addition to the development of the upstream gas field, the Block B Project will also include a midstream development for gas transportation.
MOECO subsidiaries’ share of development cost for the project, which mainly consists of offshore installations and pipeline construction, will be approximately $740 million.
Mitsui has identified the global energy transition as one of its key strategic Initiatives in its Medium-term Management Plan 2026. Mitsui considers that natural gas and LNG will play an important role during this transition and sees them as what we call real solutions.
The Block B Project will contribute to the sustainable transition to a decarbonized society through the development of gas fuel supply for power generation. Mitsui will continue to contribute to the stable supply of energy, the enhancement of quality of life, and sustainable social development through its promotion of global natural gas and LNG business.m
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