Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily, on May 10, 2016.

 

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) and Vietnam National Oil and Gas Group (PetroVietnam) have agreed to extend their production sharing contract (PSC) for the PM3 Commercial Arrangement Area (CAA) for another 10 years until 2027.

The two entities, in a joint statement yesterday, said the PSC for the CAA, signed on April 6, is with Talisman Malaysia Ltd, Talisman Malaysia (PM3) Ltd, Petronas Carigali Sdn Bhd (PCSB) and PetroVietnam Exploration Production Corp Ltd (PVEP).

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

The contract extension will maintain the production from five producing fields — Bunga Orkid, Bunga Kekwa, Bunga Raya, Bunga Tulip and Bunga Saroja.

Other activities include further development of discovered fields within the Malaysia-Vietnam offshore CAA.

Under the terms of the PSC, Talisman will continue to operate Block PM3 CAA with equity interest of 35% while PVEP will own 30% of the equity, with the remaining 35% held by PCSB.

The partners are committed to conducting near field exploration, brownfield development and studies on Enhanced Oil Recovery at a cost of US$500 million (RM2.01 billion) of additional minimum work commitment, the statement added.

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