In a statement the Vietnamese government said, “[We are] seeking to utilise two offshore gas fields to provide natural gas to existing and planned facilities at the O Mon Power Plant complex in the south of the country [and] PetroVietnam will use the US$591,000 grant to commission a study into two proposed pipeline options and consider future connections for spur pipelines.”

Unocal Corp, it is understood, is also providing additional funds for the study but it was not available for comment.

Under the terms of the agreement signed between PetroVietnam and the TDA, the state-owned firm has to select a US firm to carry out the study.