KUALA LUMPUR (July 27): National oil firm Petroliam Nasional Bhd’s (Petronas) subsidiary PC Vietnam Limited (PCVL) will hand over Blocks 01 and 02 located at the Cuu Long basin, offshore Vietnam, to the host authority once the Production Sharing Contract (PSC) for the blocks expires on Sept 9.

In a statement today, Petronas said the 26-year PSC for the blocks took effect on Sept 9, 1991, and was its first successful international venture.

Following the natural expiry of the PSC, PCVL will cease its operations as stipulated by the contract terms, Petronas said.

Petronas president and group chief executive officer Datuk Wan Zulkiflee Wan Ariffin said the oil major had come a long way since its entry into Vietnam in 1991, which was an important first step at the beginning of its globalisation journey.

“As a pioneer investor in the oil and gas industry of Vietnam, we are proud to have been given the opportunity by the host government to play a significant role in the development of the country’s oil and gas and petrochemical industries,” Wan Zulkiflee said.

“We are also privileged to have participated in Vietnam’s human capital development through structured capability building and localisation programmes for our employees, as well as various educational initiatives and sponsorship for deserving and talented young Vietnamese,” he added.

Petronas still runs upstream production activities for Blocks 102 & 106 located at Song Hong Basin, North Vietnam, which is operated by Petronas Carigali Overseas Sdn Bhd (PCOSB).

The company is also actively committed to pursuing further opportunities in its downstream businesses in the country, particularly in the lubricants and petrochemical sectors.