Malaysian state-owned energy major Petronas is abandoning two blocks located offshore Vietnam.
Petronas said on Thursday that its subsidiary, PC Vietnam Limited (PCVL), will hand over Blocks 01 and 02 at the Cuu Long basin to the host authority Petrovietnam once the Production Sharing Contract (PSC) for the blocks expires on September 9, 2017.
According to the company, the 26-year PSC for the blocks took effect on September 9, 1991, and was Petronas’ first successful international venture. Following the natural expiry of the PSC, PCVL will cease its operations as stipulated by the contract terms.
Petronas President and Group Chief Executive Officer, Datuk Wan Zulkiflee Wan Ariffin, said: “We have come a long way since our entry into Vietnam in 1991, which was an important first step at the beginning of our globalization journey.
“As a pioneer investor in the oil and gas industry of 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.”
Petronas still runs upstream production activities for Blocks 102 & 106 located at Song Hong Basin, North Vietnam which is operated by Petronas Carigali Overseas Sdn Bhd (PCOSB).