PETRONAS and PetroVietnam sign 20-year extension of production sharing contract
PETRONAS and PetroVietnam 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. Covering more than 2,000 sq km of offshore fields straddling the maritime border of Malaysia and Vietnam, the PM3 CAA is a prime showcase of enduring cross-border collaboration.
The KPA sets the framework for the continuation of the PSC and UGSA until 31 December 2047, ensuring production continuity across seven fields. The PM3 CAA PSC facilities are also positioned as a strategic hub to support tie-ins from nearby discoveries.
The domestic market UGSA has been structured to maintain the economic viability of future gas field developments. Key terms for a new UGSA will ensure continued supply to Malaysia via Kertih and to Vietnam via Ca Mau, supporting national energy demands of both countries.
The PM3 CAA is also expected to include plans for the reinjection of carbon dioxide (CO₂) produced from petroleum production activities, positioning the area as a potential hub for CO₂ sequestration. This approach supports the net-zero aspirations of both countries’ net-zero ambitions by 2050.
