Petronas, Petrovietnam Seal 20-year PSC, UGSA Extension For PM3 CAA

KUALA LUMPUR, April 10 (Bernama) -- Petroliam Nasional Bhd (Petronas), through Malaysia Petroleum Management (MPM), and Vietnam Oil and Gas Group (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.

Petronas senior vice president of MPM, Datuk Ir Bacho Pilong, said the PM3 CAA, with an estimated remaining reserve of up to 60 million barrels of oil equivalent (MMBoe), plays a crucial role in ensuring long-term energy security in the region.

“The agreement underscores the unwavering commitment from both PETRONAS and Petrovietnam to further enhance their long-term collaboration, which has been crucial to the progress of PM3, from exploration and development to the eventual monetisation of the resources,” he said in a statement today.

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Covering more than 2,000 km² of offshore fields straddling the maritime border of Malaysia and Vietnam, the PM3 CAA is a prime showcase of enduring cross-border collaboration and underscores the strong bilateral ties and shared commitment between both countries towards energy security and affordability.

The KPA sets the framework for the continuation of the PSC and UGSA until Dec 31, 2047, ensuring production continuity across seven fields and unlocking further potential in the PM3 CAA.

The PM3 CAA PSC facilities are also positioned as a strategic hub to support tie-ins from nearby discoveries, optimising asset utilisation and reinforcing energy security in both Malaysia and Vietnam.

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-- BERNAMA