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Petronas & PetroVietnam to extend sharing contract

Released at: 11:42, 12/05/2016

Petronas & PetroVietnam to extend sharing contract

Production sharing contract (PSC) with partners to continue for offshore fields in overlapping zone between Malaysia and Vietnam.

Petroliam Nasional Bhd (Petronas) and the Vietnam Oil and Gas Group (PetroVietnam) have extended the production sharing contract (PSC) with their partners for offshore fields in the overlapping zone between Malaysia and Vietnam.

Petronas said in a statement on May 9 that the agreement was signed on April 6 to extend the contract for the fields in the PM3 commercial arrangement area with partners - Talisman Malaysia Ltd, Talisman Malaysia (PM3) Ltd, Petronas Carigali Sdn Bhd, and the PetroVietnam Exploration Production Corp Ltd. 

“The PM3 CAA project involves offshore fields located throughout a 2,008 sq km area in the overlapping zone between Malaysia and Vietnam,” the statement said. 

Under the terms of the PSC, Talisman will continue to operate Block PM3 CAA with an equity interest of 35 per cent while PetroVietnam Exploration will own 30 per cent and Petronas Carigali the remaining 35 per cent.

The contract extension will maintain production from five producing fields - Bunga Orkid, Bunga Kekwa, Bunga Raya, Bunga Tulip, and Bunga Sarojafields. 

Other activities include developing discovered fields within the Malaysia-Vietnam offshore commercial arrangement area. 

Under the agreement the partners will carry out near field exploration, brownfield development, and studies on enhanced oil recovery (EOR) amounting to $500 million of additional minimum work.

Source: The Star

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