Malaysia's state-owned Petroliam Nasional Berhad (PETRONAS) and Vietnam Oiland Gas Group (PetroVietnam) announced Monday a 10-year extension of the Production Sharing Contract (PSC) for the PM3 Commercial Arrangement Area (CAA) with Talisman Malaysia Ltd., Talisman Malaysia (PM3) Limited (Talisman), PETRONAS Carigali Sdn. Bhd. (PCSB) and PetroVietnam Exploration Production Corporation Limited (PVEP).
The PM3 CAA project involves offshore fields located throughout a 775 square mile (2,008 square kilometer) area in the overlapping zone between Malaysia and Vietnam.
Under the terms of the PSC, Talisman will continue to operate Block PM3 CAA with equity interest of 35 percent while PVEP will own 30 percent of the equity, with the remaining 35 percent held by PCSB.
The contract extension will maintain the production from five producing fields namely the Bunga Orkid, Bunga Kekwa, Bunga Raya, Bunga Tulip and Bunga Saroja fields. Other activities include further development of discovered fields within the Malaysia-Vietnam offshore Commercial Arrangement Area.
The partners are committed to conduct near field exploration, brownfield development and studies on Enhanced Oil Recovery (EOR) amounting to $500 million of additional minimum work commitment.
The PSC was signed April 6 for the extended operation of Block PM3 CAA till 2027.
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