Hibiscus Petroleum and PVEP sign tie-in deal linking Block 46/13 to PM3 CAA facilities, boosting efficiency and cross-border cooperation.
Hibiscus Petroleum Berhad, through its wholly owned subsidiary Hibiscus Oil & Gas Malaysia Limited (HML), has entered into a significant agreement with PetroVietnam Exploration Production Corporation (PVEP) to strengthen offshore production collaboration between Malaysia and Vietnam. The deal, signed as a heads of agreement, establishes a tie-in arrangement that will allow crude oil and gas produced from Block 46/13 production sharing contract (PSC), operated by PVEP offshore Vietnam, to be processed through the facilities of the PM3 Commercial Arrangement Area (PM3 CAA) PSC.
This move is strategically designed to optimise the use of existing infrastructure within the PM3 CAA PSC, which is operated by HML. By linking Block 46/13’s output to PM3 CAA facilities, the companies aim to maximise available processing capacity, reduce duplication of infrastructure, and achieve greater operational efficiency. The agreement lays out detailed engineering and construction terms for integrating the facilities, as well as the commercial framework to manage product handling and cost allocation.
A key element of this agreement is the structured arrangement for how production from Block 46/13 will be managed once tied into the PM3 CAA system. It will ensure fair allocation of associated costs while maintaining seamless operations. Importantly, the final execution of this deal remains subject to the necessary approvals from Petroliam Nasional Berhad (Petronas) in Malaysia and Vietnam National Industry – Energy Group (PETROVIETNAM), reflecting both governments’ oversight in cross-border oil and gas collaborations.
This initiative forms an essential part of the PM3 CAA PSC Master Hub Strategy, which Hibiscus Petroleum is advancing in partnership with PETRONAS Carigali and PVEP. The overarching strategy focuses on extending the economic life of the PM3 CAA, one of the key offshore hubs in the region, by promoting shared infrastructure use, reducing overall costs, and ensuring long-term sustainability of production.
Beyond operational benefits, the tie-in arrangement underscores the deepening collaboration between Malaysia and Vietnam in the energy sector. The deal is an example of how national oil companies and their subsidiaries can cooperate across borders to create mutual value, particularly in managing resources efficiently and reducing development costs. Hibiscus Petroleum and PVEP, under the guidance of Petronas and PETROVIETNAM respectively, are closely aligned to bring this project forward.
Earlier this year, Hibiscus Petroleum achieved another major milestone when it secured a 20-year extension of the PM3 CAA PSC along with the upstream gas sales agreement (UGSA). This extension provides the company with the security of long-term operations in the region and complements the newly signed tie-in agreement with PVEP. Collectively, these developments highlight Hibiscus Petroleum’s commitment to expanding its presence in Southeast Asia while building sustainable and cooperative energy solutions.
