Gas resources exploited from Block PM3 CAA contribute to the formation and development of the Ca Mau Gas - Power - Fertilizer complex. (Photo: DVCC)

Maximize oil and gas resources

Petrovietnam and Petronas have just agreed to extend the PSC of Block PM3 CAA for another 20 years, from 2028 to 2047. According to Petrovietnam General Director Le Ngoc Son, the 20-year extension of the PSC of Block PM3 CAA is an important strategic decision. Accordingly, it ensures maximum exploitation of oil and gas resources, maintaining a stable gas supply for Vietnam. At the same time, it optimizes existing oil and gas infrastructure, contributing to the commitment to sustainable development and emission reduction. In particular, the event also promotes the cooperation between Vietnam and Malaysia, bringing long-term benefits to both countries.

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 - Power - 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.

The extension of the PSC at Block PM3 CAA for another 20 years demonstrates the commitment of the Vietnamese Government to creating favorable conditions for investors to continue oil and gas exploitation activities; 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 technology, aiming for the goal of net zero emissions by 2050 as committed by Vietnam.

With a long-term vision and commitment to mutually beneficial cooperation, Petrovietnam and Petronas will continue to accompany and elevate the strategic partnership, actively contributing to a sustainable energy future of the two countries and the entire region, worthy of the status of a national enterprise with a 50-year history of establishment.

20,000 barrels of oil are exploited every day.

According to Petrovietnam, the agreement was first signed on February 16, 1989, 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. This is a symbol of 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. 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.

It is known that the Block PM3 CAA oil and gas project has gone through 6 development phases, with 39 updates to the exploitation plan, putting into operation 178 development wells, 02 central technology platforms (CPP), 02 FSO vessels and over 10 satellite wellhead platforms, along with the 298km long PM3 CAA Ca Mau gas pipeline system. Current exploitation flow reaches 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.

Block PM3 CAA is operated by a Contractor Consortium with Hibiscus Oil & Gas Malaysia Ltd. (35%) and the participating parties are 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