Investing up to NOK 2 billion over two years in Vietnam's Nam Con Son gas project (NCSGP) recently received a green light from the Statoil board.
This development embraces the Lan Tay and Lan Do fields in block 06.1 operated by BP Amoco in the Nam Con Son Basin off southern Vietnam, a gas pipeline to a receiving station on land and the Phu My 3 gas-fired power station.
"We regard the NCSGP as an attractive venture," says Olav Heigre vice president for Vietnam in International Exploration & Production. "It will contribute to our long-term value creation."
He says that the Vietnamese involvement will help to safeguard the group's future progress as a strong development and production company beyond the Norwegian continental shelf.
Plans call for first gas to be ready for delivery during 2002, but a few issues remain to be clarified before the authorities in Vietnam give final approval for the project.
"We won't be committing any investment to the development in the partnership until all the contracts are in place," affirms Mr Heigre
Apart from its interest in Lan Tay and Lan Do, Statoil is involved in two other Nam Con Son exploration licences. Roughly 15 of its personnel are working on the project in Vietnam and in Singapore, where the engineering is being done.