According to director of the Binh Thuan provincial Industrial Department Dinh Huy Hiep, there is not yet any legal confirmation of untapped oil and gas reserves in the province. Many investors have registered to operate in the province’s gas industry, demonstrating that they realise the potential of the industry. After the first drill in Su Tu Trang (White Lion) oil field pumped out 56 billion cu.m of gas, a second drill has been completed, while a third drill is under way with an estimated amount of 80-100 billion cu.m of gas.

The Ministry of Industrial and the Vietnam Oil and Gas Corporation (Petrovietnam) held a seminar to assess the reserves of the Su Tu Trang oil field in order to help Binh Thuan province map out development plans in the coming period.

Mr Hiep said that the gas industry will create a fresh impetus for Binh Thuan’s industrial sector to make a breakthrough, resulting in changes to the sector’s structure. At present, the province’s processing industry accounts for 94-95 percent, while the mineral and electricity industries make up only 5-6 percent. In the coming time, the processing industry will increase absolute value and reduce its proportion to 55-60 percent. The production and water and electricity distribution sectors are expected to increase sharply.

Currently, there are about seven large investors from Japan, Russia, the Czech Republic and Vietnam involved in Binh Thuan’s gas industry. In particular, the Japanese Sumimoto group has invested approximately US$700 million in developing a power project with capacity of generating 600-700MW. The Malaysian Petronas group also registered to build a 650-MW power plant and develop a gas transmission pipeline system with total investment of US$690 million.

In recent times, Binh Thuan province has actively worked with ministries and central agencies, such as the Ministry of Planning and Investment, the Ministry of Industry, the Ministry of Construction and Petrovietnam, and submitted a plan to set up the Son My industrial and service complex to Prime Minister Phan Van Khai for approval. According to local authorities, the Son My complex has many advantages in terms of land, geological position and land acquisition. The complex is next to oil fields, including five or six oil fields currently being explored such as Su Tu Den (Black Lion), Su Tu Vang (Yellow Lion), Su Tu Nau (Brown Lion), Hong Ngoc (Ruby), and the Emeral oil fields. Furthermore, there are some other plots with large gas reserve, thus creating favourable conditions for developing gas and electricity sectors, as well as other sectors such as liquidisation, petrol-chemicals, chemicals and plastics.

The Son My complex is located in Son My commune, Ham Tan district, just 17km from La Gi township, 90km from Phan Thiet city, and 70km from Su Tu Den, Su Tu Trang and Su Tu Vang oil fields.

Deputy head of the project management board of the Binh Thuan’s industrial zones Giang Cong Tuyen said that once completed, the 4,100-ha complex will attract 120-150 large-scale hi-tech projects with total investment capital of US$2-2.5 billion. The complex will become a large power and gas centre of the country, providing opportunities for Binh Thuan to tap industrial potential after 2010. As planned, construction work on the project will start in 2007, Mr Tuyen added.