PVEP, Hibiscus in provisional agreement on Vietnam-Malaysia PSC offshore tieback
Hibiscus Oil & Gas Malaysia has signed a heads of agreement (HoA) with PetroVietnam Exploration Production Corp .(PVEP), the company reported in an Aug. 22 press release.
The agreement covers the proposed connection of production from PVEP’s Block 46/13 production sharing contract (PSC) offshore Vietnam to existing facilities in the Hibiscus-operated PM3 Commercial Arrangement Area (CAA) PSC offshore Peninsular Malaysia. PVEP, along with Petronas, is also a partner in the PM3 concession.
The HoA outlines terms for the tie-in engineering and construction program as well as product handling arrangements, which would allow Block 46/13 production to be processed at the Hibiscus-operated facilities. Terms include a commercial framework concerning production handling and cost allocation for Block 46/13.
Hibiscus added that the finalized agreement would be subject to approvals from Petronas and Vietnam National Industry - Energy Group.
The PM3 CAA PSC Master Hub Strategy is to sustain the economic life of the PM3 CAA through cost sharing and optimization of shared infrastructure, Hibiscus added.
The PSC is in water depths of about 56 m in a zone between Malaysia and Vietnam. It contains the producing fields Bunga Orkid, Bunga Pakma, Bunga Raya, Bunga Seroja, Bunga Kekwa, Bunga Tulip, Bunga Lavatera and Bunga Aster.
Its main facilities are fixed platforms with gas pipelines to Peninsular Malaysia and Vietnam. Oil is exported via the FSOs Orkid and PM3 CAA.