Petronas and Petrovietnam plan broader energy cooperation
An agreement signed in Hanoi on October 16 sets out cooperation spanning upstream operations, LNG, renewables and carbon capture and storage.
Malaysia’s Petronas plans to expand its partnership with Petrovietnam in exploration, production, LNG supply and renewable energy, its Vietnam country chairman Aimy Zairin Mohamed said at an October 20 press briefing in Ho Chi Minh City.
The companies signed a Strategic Alliance Agreement in Hanoi on October 16 covering those activities, as well as downstream operations and carbon capture and storage (CCS). Petronas will draw on its CCS experience in Malaysia to help Petrovietnam examine possible applications in support of Vietnam’s 2050 net-zero target.
Mohamed said the contract covering the PM3 Commercial Arrangement Area, on the Vietnam-Malaysia maritime boundary, had received a further 20-year extension to 2047. Remaining reserves are estimated at around 60 million barrels of oil equivalent. The Ca Mau pipeline system carries gas from the area to Vietnam.
Since April 2025, the partners have been conducting a joint technical study using geological and geophysical analysis to examine hydrocarbon prospects in several offshore blocks. Mohamed said Petronas was also pursuing opportunities for new resource development, including Blocks 102 and 106 in the offshore Song Hong Basin.
Petronas supplied its first LNG cargo to PetroVietnam Gas Joint Stock Corporation in April 2025, supplementing domestic supplies for industrial customers’ power and fuel requirements.
A separate Vietnam-Malaysia-Singapore project is examining whether Vietnamese offshore wind power could be exported to Malaysia and Singapore through subsea cables to advance the ASEAN Power Grid. The proposal remains dependent on feasibility findings and the necessary approvals.
