Petrovietnam subsidiary, Malaysia’s Hibiscus Petroleum sign Heads of Agreement for Block 46/13

The Petrovietnam Exploration Production Corporation (PVEP), a subsidiary of state-owned giant Petrovietnam, and Hibiscus Oil and Gas Malaysia Limited recently signed a Heads of Agreement for Block 46/13 Production Tie-in to PM3 CAA PSC (HOA PTI).

This event, which took place in Phu Quoc, the southern province of An Giang, marked a significant milestone in realizing the project to connect Block 46/13, operated by PVEP, with the existing infrastructure of Block PM3 CAA, currently operated by Hibiscus, according to a release posted on Petrovietnam's website on August 28.

Block 46/13 is located approximately 205 km southwest of Cape Ca Mau, in the northeastern margin of the Malay-Tho Chu Basin. The southwestern portion of the block borders Block PM3 CAA - a petroleum project in the overlapping PM3-CAA area between Vietnam and Malaysia.

According to the proposed development plan, Block 46/13 will include two unmanned platforms, WHP-KM and WHP-DD. Gas and condensate from these platforms will be transported via a 30 km subsea pipeline to the BKC-WHRP platform within Block PM3 CAA.

There, the products will be processed, with gas separated and transported to Vietnam through the existing PM3-Ca Mau pipeline. The separated condensate will be processed and stored at a floating storage and offloading (FSO) unit.

Connecting Block 46/13 to the existing PM3 CAA infrastructure brings strategic benefits to both parties.

For PVEP, this approach significantly reduces capital expenditure compared to building independent infrastructure, shortens the time to bring the field into production, and optimizes resource utilization. For Hibiscus, receiving and processing gas and condensate from Block 46/13 enhances the efficiency of its existing facilities.

The HOA TIP serves as the initial legal and commercial document that establishes the framework for subsequent detailed agreements. It outlines key principles regarding responsibilities, obligations, cost-sharing, and other terms related to the tie-in and processing of petroleum products. This lays a solid foundation for both parties to negotiate and conclude definitive contracts.

The signing ceremony was not only a procedural formality but also a demonstration of the strong and strategic collaboration between the two leading energy companies.

The event opens a new chapter for the project, accelerating implementation progress and promising high economic returns, contributing to the broader development of the energy industries in both Vietnam and Malaysia. It also establishes a solid basis for further collaborative projects in the future.