Strengthened Partnership between Petronas and PetroVietnam
Long-term Collaboration for Energy Security
Petronas and PetroVietnam have signed a Key Principles Agreement (KPA) to extend the Production Sharing Contract (PSC) and Upstream Gas Sales Agreement (UGSA) for the PM3 Commercial Arrangement Area (CAA) for another 20 years. This agreement covers over 2,000km of offshore fields straddling the maritime border of Malaysia and Vietnam, showcasing the enduring cross-border collaboration between the two countries.
Strategic Energy Cooperation
The KPA underscores the strong bilateral ties and shared commitment between both countries towards energy security and affordability. The agreement sets the framework for the continuation of the PSC and UGSA until December 31, 2047, ensuring production continuity across seven fields and unlocking further potential in the PM3 CAA.
Unlocking Abundant Hydrocarbon Resources
The PM3 CAA is estimated to have up to 60 million barrels of oil equivalent (MMBoe) of remaining reserves, playing a crucial role in contributing to sustainable energy security in the region. Petronas senior vice-president of MPM Datuk Bacho Pilong emphasized the importance of the agreement, stating that it underscores the unwavering commitment from both Petronas and PetroVietnam to enhance their long-term collaboration.
Enhancing Energy Security
The agreement positions the PM3 CAA PSC facilities as a strategic hub to support tie-ins from nearby discoveries, optimizing asset utilization and reinforcing energy security in both Malaysia and Vietnam. The domestic market UGSA has been structured to maintain the economic viability of future gas field developments.
Carbon Capture and Utilization
The PM3 CAA is expected to include plans for the reinjection of carbon dioxide (CO₂) produced from petroleum production activities, positioning the area as a potential hub for CO₂ sequestration. This approach supports the net-zero aspirations of both countries’ net-zero ambitions by 2050.
Conclusion
The extended partnership between Petronas and PetroVietnam solidifies their commitment to energy security and affordability. This collaboration will continue to drive sustainable energy development and contribute to the growth of both countries’ energy sectors.
FAQs
Q: What is the purpose of the Key Principles Agreement (KPA)?
A: The KPA sets the framework for the extension of the Production Sharing Contract (PSC) and Upstream Gas Sales Agreement (UGSA) for the PM3 Commercial Arrangement Area (CAA) for another 20 years.
Q: What is the estimated remaining reserve of the PM3 CAA?
A: The PM3 CAA is estimated to have up to 60 million barrels of oil equivalent (MMBoe) of remaining reserves.
Q: What is the significance of the PM3 CAA PSC facilities?
A: The PM3 CAA PSC facilities are positioned as a strategic hub to support tie-ins from nearby discoveries, optimizing asset utilization and reinforcing energy security in both Malaysia and Vietnam.
Q: What is the goal of carbon capture and utilization in the PM3 CAA?
A: The goal is to position the PM3 CAA as a potential hub for CO₂ sequestration, supporting the net-zero aspirations of both countries’ net-zero ambitions by 2050.