PETRONAS and PETROVIETNAM Strengthen Partnership with 20-Year PSC and UGSA Extension for PM3 CAA

PETRONAS, through Malaysia Petroleum Management (MPM), has signed a Key Principles Agreement (KPA) with Vietnam Oil and Gas Group (PETROVIETNAM) to extend the Production Sharing Contract (PSC) and the Upstream Gas Sales Agreement (UGSA) for the PM3 Commercial Arrangement Area (CAA) for another 20 years.

Spanning over 2,000 square kilometers of offshore fields along the maritime boundary between Malaysia and Vietnam, the PM3 CAA stands as a successful example of enduring cross-border cooperation. This milestone reaffirms the strong bilateral relationship and shared commitment of both nations to ensuring energy security and affordability.

The KPA signing ceremony took place in Hanoi, with PETRONAS Senior Vice President of MPM, Datuk Ir. Bacho Pilong, and PETROVIETNAM Vice President, Le Manh Cuong, as signatories. The event was witnessed by H.E. Dato' Tan Yang Thai, Ambassador of Malaysia to Vietnam, and Suhaili Ismail, Minister Counsellor (Economics), along with representatives from Hibiscus Oil & Gas Malaysia (PM3) Limited, Hibiscus Oil & Gas Malaysia Limited (HML), PETRONAS Carigali Sdn Bhd (PETRONAS Carigali), and PetroVietnam Exploration Production Corporation Limited (PVEP).

Datuk Ir. Bacho Pilong highlighted that with an estimated 60 million barrels of oil equivalent (MMBoe) in remaining reserves, the PM3 CAA continues to play a critical role in supporting regional energy sustainability. He emphasized that the renewed agreement reflects the steadfast commitment of PETRONAS and PETROVIETNAM to strengthen their long-standing partnership, which has been key to the area’s exploration, development, and resource monetisation.

The KPA provides the foundation for extending the PSC and UGSA until 31 December 2047, ensuring continued production from seven fields while unlocking further potential within PM3 CAA. The facilities in this area are also positioned as a strategic hub for future tie-ins from nearby discoveries, optimizing asset utilization and enhancing energy security for both countries.

The new UGSA has been designed to maintain the economic feasibility of upcoming gas developments, with terms ensuring continued gas supply to Malaysia via Kertih and to Vietnam via Ca Mau—helping to meet national energy needs on both sides.

Looking ahead, the PM3 CAA will also explore carbon dioxide (CO₂) reinjection initiatives, turning the area into a potential hub for CO₂ sequestration. This move aligns with the net-zero carbon emission goals set by both Malaysia and Vietnam for 2050.

PETRONAS remains committed to providing a reliable and sustainable supply of oil and gas to support energy security, with MPM playing a pivotal role in managing petroleum arrangements and overseeing upstream petroleum activities in Malaysia.