Deputy Prime Minister and Minister of Foreign Affairs Bui Thanh Son and leaders of relevant ministries, departments and branches attended the ceremony.
According to Petrovietnam leaders, the new designation of Vietnam National Industry and Energy Group affirms: Petrovietnam is not only a traditional oil and gas and energy group but also the center of industry, services and national energy pillar - carrying the mission of sustainable development, technological innovation, and ensuring energy security for Vietnam.
In addition, the name change will ensure that the group's organization and operations are consistent with the Politburo 's orientation, the energy transition trend, and the Prime Minister's commitment to Net Zero by 2050.
The name change is an important milestone for Petrovietnam after 50 years of establishment and development, after 64 years of tradition in the oil and gas industry. At the same time, it demonstrates Petrovietnam's strong commitment and determination in the process of transformation in development strategy and operating model, affirming the leading role, foundation and driving force of state-owned enterprises in the industrial and energy sectors.
According to Petrovietnam leaders, the new name not only reflects the new mission and new vision, but also demonstrates the group's pioneering commitment in technological innovation, sustainable development, ensuring national energy security, integrating into the global energy chain, etc.
Regarding the extension of the petroleum product sharing contract (PSC) at Block PM3 CAA, Petrovietnam General Director Le Ngoc Son said that Block PM3 CAA is located in the overlapping area between Vietnam and Malaysia, and is a symbol of effective cooperation between the two countries over the past 30 years.
Since the Block PM3 CAA oil and gas production sharing contract was signed on February 16, 1989 and implemented under the memorandum of understanding (MOU) between the Government of Vietnam and the Government of Malaysia in 1992, the project has continuously developed, contributing significantly to the energy security and economic growth of both countries.
By the end of 2024, Block PM3 CAA has produced more than 250 million barrels of oil and 1,600 billion cubic feet of gas (equivalent to about 43 billion m³ of gas) for both Vietnam and Malaysia, with Vietnam supplying most of the gas output for the Ca Mau gas-power-fertilizer complex, making an important contribution to ensuring energy security and economic development in the Southwest region of Vietnam. Total revenue from the project reached 25.6 billion USD, an impressive figure, demonstrating the very effective cooperation between the two countries.
Petrovietnam General Director Le Ngoc Son also emphasized that the extension of the oil and gas product sharing contract of Block PM3 CAA for another 20 years (from 2028 to 2047) is a strategic and important decision to ensure maximum exploitation of oil and gas resources and maintain a stable gas supply for Vietnam. In particular, continuing to exploit effectively, fully recover resources, and at the same time conducting exploration and survey activities in deeper reservoirs, bringing long-term benefits to the two host countries.
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Delegates witnessed the signing ceremony of the main agreement in principle to extend the petroleum product sharing contract (PSC) at Block PM3 CAA. |
“Oil and gas exploration and exploitation at Block PM3 CAA has helped form the Ca Mau gas-electricity-fertilizer cluster, making an important contribution to the economic-cultural-social development of the Southwest region of the country, ensuring food security and national energy security. The extension of the Block PM3 CAA oil and gas product sharing contract for the next phase contributes to ensuring long-term gas supply for the Southwest region in general and for Ca Mau industry in particular,” Mr. Le Ngoc Son affirmed.
Mr. Le Ngoc Son also said that the existing oil and gas exploitation, processing and transportation systems at Block PM3 CAA can be utilized as a processing hub to connect and develop neighboring fields of both Vietnam and Malaysia, contributing to optimizing costs and increasing the overall exploitation efficiency between the two countries.
One of the important strategies of the oil and gas industry in the future is to use obsolete wells as CO₂ landfills (CCS Hubs), minimizing environmental impacts. The extension of the oil and gas product sharing contract will facilitate the implementation of these technological solutions, aiming at sustainable development goals and realizing Vietnam's "Net-Zero" commitment by 2050.
Mr. Le Ngoc Son affirmed: Block PM3 CAA is not only an oil and gas project, but also a symbol of the close bilateral cooperation between the two countries. The extension of the Block PM3 CAA oil and gas product sharing contract for another 20 years as well as the extension of the memorandum of understanding between the two governments will continue to strengthen this strategic relationship, bringing long-term benefits to both Vietnam and Malaysia.
The 20-year extension of the oil and gas production sharing contract is an unprecedented decision, but it demonstrates the Vietnamese Government’s commitment to creating favorable conditions for investors to continue oil and gas exploitation activities. This also places high demands on optimizing exploitation, improving operational efficiency and complying with safety and environmental protection standards.
“The consortium of contractors, led by Hibiscus Oil & Gas Malaysia Ltd., and the participating parties being PetroVietnam Exploration Production Corporation (PVEP) and Petronas Carigali Sdn. Bhd., has demonstrated a strong commitment to continue investing in Block PM3 CAA with a minimum financial commitment of up to USD 274 million and an investment cost of approximately USD 1 billion. With the experience and capacity of the contractors, the extension of the oil and gas product sharing contract will bring even greater success, contributing to the economic and diplomatic development of Vietnam and Malaysia,” Mr. Le Ngoc Son emphasized.
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Deputy Prime Minister Bui Thanh Son spoke at the ceremony. |
Speaking at the ceremony, Deputy Prime Minister Bui Thanh Son highly appreciated the cooperation and development of the two groups in recent times, and emphasized that the name change of Vietnam National Industry and Energy Group not only reflects the strong development of the group over the past 50 years but also demonstrates the great role and responsibility of the group in the energy transition trend, ensuring national energy security in the coming time.
The Deputy Prime Minister also affirmed that the PM3 CAA project has been developed by both sides into an effective and stable model of joint resource management over the past three decades. The success of the project comes not only from technical capacity, but also from strategic consensus, political trust and the spirit of responsible partnership between the two countries. This is also a clear illustration of the two countries' continuous consolidation of the Vietnam-Malaysia comprehensive strategic partnership, in which energy cooperation always plays a pioneering role.
In the context of the region and the world facing urgent demands for energy transition and ensuring energy security, the two sides need to continue to exploit resources effectively, apply clean technology, save energy, reduce emissions, move towards sustainable development and realize the common goal of the two sides of net zero emissions by 2050, in line with the commitments at COP26 and COP28,...
The Deputy Prime Minister welcomed the proactive and innovative spirit of the parties in seeking new cooperation models, from developing hydrogen, gas-to-power, carbon storage to expanding the value chain in ASEAN. Such directions are not only in line with the national strategic orientation but also contribute to realizing the vision of a more sustainable and multilateral regional energy infrastructure network.
At the same time, the Deputy Prime Minister requested the contractor consortium to continue to coordinate effectively, implement the agreement on schedule, safely, transparently and on the basis of compliance with the laws of both countries as well as expand experience sharing and technical exchanges with similar projects in the region. The Vietnamese Government is committed to continuing to accompany and provide maximum support so that energy cooperation projects between the two countries can be implemented effectively, stably and sustainably.
Source: https://nhandan.vn/petrovietnam-cong-bo-chuyen-doi-ten-goi-va-gia-han-hop-dong-chia-san-pham-dau-khi-lo-pm3-caa-post871234.html
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