PM3 CAA Block: A Symbol of International Partnership for Peace and Sustainable Development

Originally signed on February 16, 1989, the PSC for the PM3 CAA Block marked a milestone in the partnership between Petrovietnam and Petronas. Based on the 1992 Memorandum of Understanding between the Governments of Vietnam and Malaysia, the two corporations were officially designated as host country representatives to implement oil and gas operations in the overlapping continental shelf area. This initiative has since become a hallmark of the effective and enduring energy cooperation between Vietnam and Malaysia over more than 50 years of diplomatic relations.

Over the decades, Petrovietnam and Petronas have built a strong, stable, and mutually beneficial strategic partnership. Their collaboration has expanded beyond exploration and production into new domains such as liquefied natural gas (LNG), renewable energy, and carbon emission reduction technologies — aligning with global energy transition trends and the evolving mandates of both corporations.

Mr. Lê Ngọc Sơn, General Director of Petrovietnam, emphasized that the extension of the PSC at PM3 CAA is a strategically significant decision.

The PM3 CAA project has undergone six development phases, including 39 updates to production plans, the operation of 178 development wells, two central processing platforms (CPPs), two floating storage and offloading (FSO) vessels, over ten satellite wellhead platforms, and a 298 km PM3 CAA – Cà Mau gas pipeline. Current production reaches approximately 20,000 barrels of oil and 200 million standard cubic feet of natural gas per day — figures that reflect advanced technical performance and robust operational coordination.

General Director Lê Ngọc Sơn affirmed that the 20-year extension of the PSC (from 2028 to 2047) is crucial for maximizing petroleum resource recovery and maintaining a stable gas supply for Vietnam. It also optimizes the use of existing oil and gas infrastructure, supports sustainable development goals, and contributes to emission reduction. Notably, this event further deepens the bilateral partnership, generating long-term value for both nations.

Operational diagram of Block PM3 CAA

As of the end of 2024, the project has produced approximately 250 million barrels of oil and 1.6 trillion standard cubic feet of gas (equivalent to 43 billion cubic meters), of which nearly 25 billion cubic meters have been supplied to Vietnam. This supply has played a vital role in the development of the Cà Mau Gas–Power–Fertilizer Complex, contributing significantly to the socio-economic development of the Southwest region. With total investment exceeding USD 10 billion, the project has generated revenue of USD 24.8 billion, delivering substantial economic value and contributing meaningfully to the national budgets of both countries.

The gas extracted from Block PM3 CAA has contributed to the establishment and development of the Ca Mau Gas – Power – Fertilizer Complex.

The 20-year extension of the PSC demonstrates the Vietnamese Government’s commitment to creating favorable conditions for investors to continue oil and gas activities. It enables optimization of current resource exploitation, facilitates deeper reservoir exploration, linkage with adjacent fields, and—critically—the application of carbon capture and emission reduction technologies. These efforts support Vietnam’s national pledge to achieve net-zero emissions by 2050.

Deputy Minister of Industry and Trade Nguyễn Hoàng Long reiterated the Ministry’s full support for the project’s safe, efficient implementation and its goal of achieving mutually beneficial outcomes.

At the signing ceremony, Deputy Minister Nguyễn Hoàng Long praised the dedicated efforts of the two corporations, the host nations, and the contractor consortium — particularly Hibiscus, Petronas Carigali, and PVEP — in advancing the contract renewal. He described this decision as strategic, enabling continued resource utilization and ensuring a stable gas supply to the Mekong Delta, where the Cà Mau Gas–Power–Fertilizer Complex plays a vital role in regional energy security and development.

He called on all contractors to maintain close coordination and fulfill their commitments efficiently, ensuring progress, safety, and compliance with Vietnamese and Malaysian laws. The Ministry of Industry and Trade is committed to ongoing support and creating optimal conditions for the project's successful execution, bringing balanced benefits to all stakeholders and contributing meaningfully to both countries.

Deputy Prime Minister and Minister of Foreign Affairs Bùi Thanh Sơn, speaking on behalf of the Vietnamese Government, emphasized that the cooperation between Petrovietnam and Petronas in natural resource development is a model of mutual respect, understanding, and shared benefit between the two nations.

He stated that the event marked a new chapter in the close, respectful, and constructive partnership between Petrovietnam and Petronas. It also reaffirms the broader strategic cooperation between Vietnam and Malaysia under their Comprehensive Strategic Partnership.

Deputy Prime Minister Bùi Thanh Sơn applauded both corporations’ shared commitment to efficient resource exploitation, clean technology adoption, and emission reduction — all aligned with national development strategies and contributing to a sustainable, regionally integrated energy network. Their joint effort toward realizing the Net Zero 2050 goal further underscores their role as responsible energy partners.

Petrovietnam and Petronas sign a cooperation agreement for Block PM3 CAA

He stated that the event marked a new chapter in the close, respectful, and constructive partnership between Petrovietnam and Petronas. It also reaffirms the broader strategic cooperation between Vietnam and Malaysia under their Comprehensive Strategic Partnership.

Deputy Prime Minister Bùi Thanh Sơn applauded both corporations’ shared commitment to efficient resource exploitation, clean technology adoption, and emission reduction — all aligned with national development strategies and contributing to a sustainable, regionally integrated energy network. Their joint effort toward realizing the Net Zero 2050 goal further underscores their role as responsible energy partners.

PVN