Malaysian Petroliam Nasional Berhad (PETRONAS) and Vietnam Oil and Gas Group (PETROVIETNAM) have signed a Key Principles Agreement (KPA) to extend the Production Sharing Contract (PSC) and the Upstream Gas Sales Agreement (UGSA) for the PM3 Commercial Arrangement Area (CAA) for an additional 20 years.

Spanning over 2,000 km² of offshore fields along the maritime border between Malaysia and Vietnam, the PM3 CAA stands as a model of long-standing cross-border energy cooperation. This latest milestone underscores the strong bilateral relationship and mutual commitment of both nations towards energy security and affordability.

The KPA was signed in Hanoi by Datuk Ir. Bacho Pilong, Senior Vice President of Malaysia Petroleum Management (MPM) at PETRONAS, and Le Manh Cuong, Vice President of PETROVIETNAM.

Datuk Ir. Bacho Pilong remarked, “With an estimated remaining reserve of up to 60 million barrels of oil equivalent (MMBoe), the abundant hydrocarbon resources in PM3 CAA play 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 and development to the eventual monetization of its resources.”

The KPA sets the framework for the continuation of the PSC and UGSA until 31 December 2047, ensuring production continuity across seven fields and unlocking further potential within the PM3 CAA. The PM3 CAA PSC facilities are also positioned as a strategic hub to support tie-ins from nearby discoveries—optimizing asset utilization and reinforcing energy security in both Malaysia and Vietnam.

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 both countries’ ambitions to achieve net-zero emissions by 2050.