PetroVietnam, Petronas extend joint upstream oil and gas project to 2027

By Toan Dao   May 10, 2016 | 08:17 am GMT+7
PetroVietnam, Petronas extend joint upstream oil and gas project to 2027
PetroVietnam oil rig complex at sea.

PetroVietnam and Petronas, the national oil and gas companies of Vietnam and Malaysia, have agreed to extend their Production Sharing Contract (PSC) for an upstream oil and gas project operated by Canada's Talisman in their overlapping area by 10 years to 2027, they said in a joint statement released on Monday.

The agreement was signed on April 6.

Under the terms of the PSC, Talisman will continue to operate the Block PM3 CAA and hold a 35 percent stake in the project. Vietnam’s PetroVietnam Exploration Production Corp. (PVEP) will hold 30 percent and Malaysia’s Petronas Carigali Sdn. Bhd. has the remaining 35 percent, the statement said.

At present, Talisman has a 41.44% operating interest in the PM3 CAA project with Petronas Carigali Sdn. Bhd. (46.06%) and PVEP (12.5%).

The investors will maintain the production from the Bunga Orkid, Bunga Kekwa, Bunga Raya, Bunga Tulip and Bunga Saroja oil fields.

Other activities include further development of fields within the Malaysia-Vietnam offshore Commercial Arrangement Area.

The partners are committed to conducting near-field exploration, brownfield development and studies on Enhanced Oil Recovery (EOR), which is worth an additional $500 million to the minimum work commitment, Petronas said.

The PM3 CAA project involves offshore fields located throughout a 2,008km2 area in the overlapping zone between Malaysia and Vietnam. The PM3 CAA commenced in 1997.

Some of the natural gas produced by the project is transported through the 330km PM3-Ca Mau pipeline project to mainly feed power and fertilizer plants in Vietnam’s southern province of Ca Mau.

 
 
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