Petronas to hand over two Vietnam blocks after PSC expires

KUALA LUMPUR: Petroliam Nasional Bhd’s (Petronas) subsidiary PC Vietnam Ltd will hand over Blocks 01 and 02, located at Cuu Long Basin, offshore Vietnam, to the host authority once the production sharing contract (PSC) for the blocks expires on Sept 9, 2017.
The 26-year PSC for the blocks took effect on Sept 9, 1991, and was Petronas’ first successful international venture. After the natural expiry of the PSC, PC Vietnam will cease its operations.
Petronas president and group CEO Datuk Wan Zulkiflee Wan Ariffin said it has come a long way since its entry into Vietnam in 1991, which was an important first step at the beginning of its globalisation journey.
“As a pioneer investor in the oil and gas industry in Vietnam, we are proud to have been given the opportunity by the host government to play a significant role in the development of the country’s oil and gas and petrochemical industries.
“We are also privileged to have participated in Vietnam’s human capital development through structured capability building and localisation programmes for our employees as well as various educational initiatives and sponsorship for deserving and talented young Vietnamese,” he said in a statement.
Petronas still runs upstream production activities for Blocks 102 and 106 at Song Hong Basin, northern Vietnam, which are operated by Petronas Carigali Overseas Sdn Bhd.
Petronas is also actively committed to pursuing further opportunities in its downstream businesses in the country, particularly in the lubricants and petrochemical sectors.