(VNF) - Exxon Mobil's 30% reduction in investment costs made the market concerned that the Blue Whale project was behind schedule. Moreover, the US energy "giant" faces the risk of a shortage of USD 48 billion to cover until 2021.
The oil and gas giant Exxon Mobil is deadlocked in the Blue Whale project
According to KB Vietnam Securities Company (KBSV), the Ca Voi Xanh gas power project recorded a slow progress due to the difficulty of Exxon Mobil contractor.
Ca Voi Xanh gas - power project chain includes component projects: Ca Voi Xanh gas field development project; power plant projects using gas from Ca Voi Xanh gas field (Central I, II (Quang Nam) and Dung Quat I, II and III (Quang Ngai).
The development of the Ca Voi Xanh gas - power project chain is particularly important, it is expected that when it comes into commercial operation, every year, the five above power plants will provide the national grid with about 23-25 billion kWh of electricity, contributing to ensuring enough electricity for the country from 2023. According to preliminary calculations, the total state budget revenue from the project chain (the period of 2023-2044) will reach about 15-18 billion USD.
However, KBSV said that Exxon Mobil recently made a decision to cut investment costs by 30%, making the market concerned about the delay in the Blue Whale project. This American energy company owns 64% of the Blue Whale project and expects this project to come into commercial operation in 2023.
Even so, Bloomberg recently pointed out that Exxon Mobil could suffer losses of up to $ 1.86 billion in 2020 and is estimated to have a $ 48 billion shortfall in cash by the end of next year.
This may cause the company to consider layoffs, and delay projects until 2021.
The Blue Whale field is located in the Song Hong basin and can supply 9.7 billion cubic meters of natural gas per year, equivalent to 22% of the demand in Vietnam by 2030.
Meanwhile, according to KBSV, Vietnam Gas Corporation (PV Gas) will continue to benefit from the output delay from the Blue Whale super project, as Vietnam will focus on meeting gas demand
naturally growing through the import of cheap LNG.
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