Petrovietnam and Petronas Malaysia extend oil and gas product sharing contract at Block PM3 CAA

Vietnam National Oil and Gas Group (Petrovietnam) and Malaysia National Oil and Gas Group (Petronas) have just extended the Petroleum Product Sharing Contract (PSC) at Block PM3 CAA for another 20 years, from 2028 to 2047.

Petrovietnam and Petronas sign cooperation contract at Block PM3 CAA

In the context of Vietnam - Malaysia relations being upgraded to Comprehensive Strategic Partnership in 2024, Petrovietnam and Petronas continue to affirm their pioneering role in bilateral cooperation, especially in the energy sector with the extension of the petroleum product sharing contract (PSC) at Block PM3 CAA.

First signed on February 16, 1989, the PSC Block PM3 CAA is 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 to deploy oil and gas activities in the overlapping area between the two countries.

Since then, Petrovietnam and Petronas have built a traditional, stable and effective strategic partnership. The cooperation has been expanded not only in exploration and exploitation, but also in new areas such as LNG, renewable energy and the application of CO₂ emission reduction technology, in line with the world's energy transition trend as well as the expansion of the two parties' fields of operation.

The Block PM3 CAA oil and gas project has undergone 6 development phases, with 39 updates to the exploitation plan, putting into operation 178 development wells, 2 central technology platforms (CPP), 2 FSO vessels and over 10 satellite wellhead platforms, along with the 298km long PM3 CAA Ca Mau gas pipeline system. Current production capacity is about 20,000 barrels of oil and about 200 million cubic feet of gas per day - figures demonstrating outstanding technical efficiency and sustainable operational coordination.

PM3 CAA batch operation diagram.

By the end of 2024, the project has exploited about 250 million barrels of oil and 1,600 billion cubic feet of gas (equivalent to 43 billion cubic meters), of which nearly 25 billion cubic meters of gas have been supplied to Vietnam, contributing to the formation and development of the Ca Mau Gas - Electricity - Fertilizer complex, making a great contribution to the socio-economic development of the Southwest region.

With a total investment cost of about 10 billion USD, the project has generated oil and gas revenue of up to 24.8 billion USD, bringing outstanding economic value and contributing significantly to the state budgets of both countries.

Photo news: NHAT MINH

Source: https://baobariavungtau.com.vn/kinh-te/202504/petrovietnam-va-petronas-malaysia-gia-han-hop-dong-chia-san-pham-dau-khi-tai-lo-pm3-caa-1039306/