Offshore staff
SINGAPORE – Jadestone Energy has decided to delay development of the Nam Du and U Minh gas fields offshore Vietnam, as part of a review of its 2020 capital program.
The company, which has so far not received approvals for the development plan from Vietnam’s government, will remove virtually all capital spending allocated for the project in 2020, resulting in a 50% reduction of its capex guidance for this year, now expected to be $80-$95 million.
Jadestone had assumed receipt of government approvals by the current quarter, and now envisages start-up of the two fields no earlier than late 2022.
The company’s remaining 2020 capital program mainly comprises infill drilling at the Montara and Stag fields offshore Western Australia.
Paul Blakeley, president and CEO, said: “Vietnam currently has the potential to take temporarily cheap competitor piped gas, which is oil price linked and benefitting from the current market dislocation, and the Nam Du and U Minh fields can be developed when investment conditions improve.”
03/19/2020
