Cross-border Malaysia/Vietnam E&P terms extended, could open path to CO2 sequestration hub
April 15, 2025
Petronas and PetroVietnam have extended their upstream arrangements for the PM3 CAA concession overlapping waters offshore Malaysia and Vietnam by a further 20 years.
Petronas and PetroVietnam have extended their upstream arrangements for the PM3 CAA concession overlapping waters offshore Malaysia and Vietnam by a further 20 years, according to an April 9 news release.
The two parties signed a key principles agreement that covers the production sharing contract (PSC) and upstream gas sales agreement (UGSA) for the 2,000-sq-km PM3 Commercial Arrangement Area, which includes seven producing offshore fields.
Both the PSC and UGSA should now remain effective through Dec. 31, 2047. The production facilities also provide a hub for tie-ins from nearby discoveries.
Petronas added that planned reinjection of CO2 from produced hydrocarbons could position the area as a potential hub for CO2 sequestration.
Courtesy Petronas
Representatives from Petronas, PetroVietnam and Hibiscus Petroleum at the signing ceremony reaffirmed strong bilateral ties and shared commitment between Malaysia and Vietnam toward energy security and affordability, Petronas reported April 9.
