Petronas, through Malaysia Petroleum Management (MPM), extended offshore production contracts with Vietnam Oil and Gas Group (PetroVietnam) in the PM3 Commercial Arrangement Area (CAA) straddling the maritime border of Malaysia and Vietnam.
The key principles agreement extends a production sharing contract and upstream gas sales agreement for another 20 years until Dec. 31, 2047, ensuring production continuity across seven fields, the comapny said in a release Apr. 10. The new upstream gas sales agreement ensures continued supply to Malaysia via Kertih and to Vietnam via Ca Mau, Petronas said.
The agreement area area covers more than 2,000 sq km and holds an estimated 60 MMboe in remaining reserves with support for tie-ins from nearby discoveries.
The PM3 CAA is also expected to include plans for the reinjection of CO₂ produced from petroleum production activities.
Alex Procyk | Upstream Editor
Alex Procyk is Upstream Editor at Oil & Gas Journal. He has also served as a principal technical professional at Halliburton and as a completion engineer at ConocoPhillips. He holds a BS in chemistry (1987) from Kent State University and a PhD in chemistry (1992) from Carnegie Mellon University. He is a member of the Society of Petroleum Engineers (SPE).
