Under the deal, PV Gas will contribute through PVEP one quarter of the estimated investment of US$500 million in the phase II of the Su Tu Trang (White Lion) gas field.
In Phase II, gas exploitation is hoped to begin in the fourth quarter of 2019, with the volume of gas extracted to reach 1.5 billion cubic metres a year.
Gas from Su Tu Trang will be directly delivered to the mainland through the Nam Con Son 2 pipeline project, phase II, with 117km of pipeline at sea and another 39km onshore.
Su Tu Trang will be the main source of gas supply for the Dinh Co 2 gas processing plant, which will become operational in the fourth quarter of 2020.
PV Gas and PVEP, two subsidiaries of the Vietnam National Oil and Gas Group (PetroVietnam), pledged to conduct negotiations to early sign an investment cooperation contract based on the agreement in principle.