Hibiscus Petroleum has secured a 20-year extension for the PM3 Commercial Arrangement Area (CAA) production sharing contract (PSC) and upstream gas sales agreement (UGSA).
The agreement, effective from 1 January 2028 to 31 December 2047, involves Hibiscus Oil & Gas Malaysia, Petronas and Vietnam Oil and Gas Group (Petrovietnam).
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Hibiscus Oil & Gas Malaysia will remain the operator of the PM3 CAA PSC, holding a 35% equity interest along with Hibiscus Oil & Gas Malaysia (PM3).
Petrovietnam Exploration Production Corporation will hold 30%, while Petronas Carigali will retain the remaining 35%.
The contract extension aims to sustain production from existing fields, develop discovered fields and explore further within the Malaysia-Vietnam offshore CAA.
This initiative is expected to enhance the asset portfolio by unlocking residual value and adding reserves and resources.
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By GlobalDataPetronas senior vice-president of MPM Datuk Ir. Bacho Pilong said: “With an estimated remaining reserve of up to 60 million barrels of oil equivalent (MMBoe), the abundant hydrocarbon resources in PM3 CAA plays a key role in contributing towards sustainable energy security in the region.
“The agreement underscores the unwavering commitment from both PETRONAS and PETROVIETNAM to further enhance their long-term collaboration, which has been crucial to the progress of PM3, from exploration, development to eventual monetisation of the resources.”
Spanning more than 2,000km² along the Malaysia-Vietnam maritime border, the PM3 CAA supports cross-border collaboration.
It highlights the bilateral commitment to energy security and affordability between the two nations.
The PM3 CAA PSC facilities serve as a strategic hub for tie-ins from nearby discoveries, optimising asset utilisation and reinforcing energy security in both Malaysia and Vietnam.
Plans for carbon dioxide reinjection from petroleum production activities in the PM3 CAA are under way, aligning with both countries’ net-zero ambitions by 2050.
Petronas also recently confirmed ongoing discussions with Sarawak’s state-run energy operator Petros regarding the role of gas aggregator.
The discussions are important, given that Sarawak holds more than 60% of Malaysia’s gas reserves.
However, negotiations between Petronas and Petros have been stalled since last year, raising concerns about possible effects on Petronas’ revenue – a key contributor to the federal government’s finances.
