Environment
Contribute to the World by Reducing CO2 Emissions
Associated Gas Recovery and Utilization Project the Rang Dong Oil Field in Vietnam
We have developed and promoted a project to reduce the CO2 emissions at the Rang Dong oil field in Vietnam (the “Rang Dong Project”). The Rang Dong Project was approved by the CDM Executive Board as a Clean Development Mechanism (“CDM”) under the Kyoto Protocol and 4.49 million tons of CERs were issued for the Rang Dong Project.
Japan Vietnam Petroleum Company, Ltd. (JVPC), a subsidiary of JX Nippon Oil & Energy, produces crude oil as a operator from the Rang Dong oil field in Vietnam. Previously, the associated gas produced along with the crude oil from the Rang Dong oil field was flared at the offshore platform. In this project, the associated gas is recovered and supplied for local use, such as to power generation plants, through a sub-sea pipeline.
About CDM and CER Issuance
The CDM is a mechanism under the Kyoto Protocol. Developed countries and developing countries cooperate in implementing a project which reduces the emissions of the greenhouse gases (“GHGs”) such as CO2. If the project meets the CDM criteria for CDM registration the CDM Executive Board will issue certified emission reductions (“CERs”) to the project participants equivalent to the reduction of GHGs emissions caused by the project.
The Rang Dong Project has been registered as a CDM since February 2006. In February 2008, the CDM Executive Board formally approved a CERs issuance of 4.49 million tons for the emission reductions achieved by the project for the period between December 2001 and December 2005. The Rang Dong Project is expected to receive further approvals for the CERs issuances for January 2006 onwards, which will accumulate to approximately 8 million tons for the 10 year period between 2001 and 2011.
The JX Group independently created, proposed and established the CDM methodology as international rules for this type of project. Currently these rules are applied globally at CDM application in 33 associated gas recovery and utilization projects. The total annual CO2 emissions reductions from these projects are estimated at 14 million tons. These projects contribute not only to preventing global warming by CO2 emissions reductions but also to improving self-sufficiency of energy in developing countries, and largely contributing to a sustainable development of such developing countries.
