The gas extracted from Block PM3 CAA contributes to the formation and development of the Ca Mau Gas-Electricity-Fertilizer complex. (Photo: Provided by the company)
Maximizing the exploitation of oil and gas resources.
Petrovietnam and Petronas have agreed to extend the PSC (Property Security Contract) for Block PM3 CAA for another 20 years, from 2028 to 2047. According to Petrovietnam General Director Le Ngoc Son, extending the PSC for another 20 years is a strategically important decision. It ensures the maximum exploitation of oil and gas resources, maintaining a stable gas supply for Vietnam. Simultaneously, it optimizes existing oil and gas infrastructure, contributing to the commitment to sustainable development and emission reduction. Importantly, this event also promotes cooperation between Vietnam and Malaysia, bringing long-term benefits to both countries.
By the end of 2024, the project had extracted approximately 250 million barrels of oil and 1.6 trillion cubic feet of gas (equivalent to 43 billion cubic meters), of which nearly 25 billion cubic meters of gas had been supplied to Vietnam, contributing to the formation and development of the Ca Mau Gas-Electricity-Fertilizer complex, and making a significant contribution to the socio -economic development of the Southwest region. With a total investment cost of approximately 10 billion USD, the project generated oil and gas revenue of up to 24.8 billion USD, bringing outstanding economic value and making a significant contribution to the state budgets of both countries.
The extension of the PSC in Block PM3 CAA for another 20 years demonstrates the Vietnamese Government's commitment to facilitating continued oil and gas exploration activities for investors; aiming to optimize the exploitation of existing resources, while opening up opportunities to explore deeper layers, connect with neighboring fields, and most importantly, apply carbon capture and emission reduction technologies, towards achieving net zero emissions by 2050 as committed by Vietnam.
With a long-term vision and a commitment to mutually beneficial cooperation, Petrovietnam and Petronas will continue to work together, elevating their strategic partnership and making positive contributions to a sustainable energy future for both countries and the entire region, befitting their status as national enterprises with a rich history of 50 years of establishment.
They extract 20,000 barrels of oil per day.
According to Petrovietnam, the agreement, first signed on February 16, 1989, for the PM3 CAA Paceholder Contracting Office (PSC), marks a milestone affirming the cooperative relationship between Petrovietnam and Petronas. Based on the Memorandum of Understanding between the Government of Vietnam and the Government of Malaysia in 1992, Petrovietnam and Petronas were officially assigned to represent the host country in carrying out oil and gas activities in the overlapping area between the two countries. This symbolizes the effective cooperation between Vietnam and Malaysia over the past 50 years.
Since then, Petrovietnam and Petronas have built a traditional, stable, and effective strategic partnership. This cooperation has expanded beyond exploration and production to new areas such as LNG, renewable energy, and the application of CO2 emission reduction technologies, aligning with the global energy transition and the expansion of both companies' operations.
The PM3 CAA oil and gas project has reportedly undergone six development phases, with 39 updates to its production plan, bringing into operation 178 development wells, two central processing platforms (CPPs), two FSO vessels, and over 10 satellite wellhead platforms, along with the 298km long PM3 CAA Ca Mau gas pipeline system. Current production reaches approximately 20,000 barrels of oil and about 200 million cubic feet of gas per day – figures demonstrating superior technical efficiency and sustainable operational coordination.
The PM3 CAA block is operated by a Contractor Consortium with Hibiscus Oil & Gas Malaysia Ltd. (35%) and participating parties PVEP (a member unit of Petrovietnam - 30%) and Petronas Carigali Sdn. Bhd. (35%).
Minh Huu
Source: https://baophapluat.vn/buoc-tien-chien-luoc-trong-hop-tac-petrovietnam-va-petronas-post545528.html
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