Hibiscus Petroleum Berhad has announced that its indirect wholly-owned subsidiaries have signed a 20 year Key Principles Agreement with Petroliam Nasional Berhad through Malaysia Petroleum Management (MPM), and Vietnam Oil and Gas Group.
The agreement is for the continuation of the PM3 Commercial Arrangement Area Production Sharing Contract (PM3 CAA PSC) and Upstream Gas Sales Agreement (UGSA) for 20 years, commencing on January 1, 2028, and expiring on December 31, 2047. The continuation will be under enhanced PSC and UGSA terms.
During this period, HML will remain the Operator of the PM3 CAA PSC with the same equity interest of 35%, jointly held with HML PM3. PetroVietnam Exploration Production Corporation Limited (PVEP) will hold 30% of the equity, and PETRONAS Carigali Sdn. Bhd. will hold the remaining 35%.
The contract continuation will maintain production from existing fields, allow for the development of discovered fields, and enable further exploration within the Malaysia-Vietnam offshore Commercial Arrangement Area. Hibiscus Petroleum states that this will enable the company to unlock the full residual value of the asset and add additional reserves and resources to its asset portfolio
