Malaysian energy giant Petronas and Vietnamese Petrovietnam have announced the signing of a a ten-year extension of the Production Sharing Contract (PSC) for the PM3 Commercial Arrangement Area (CAA) with Talisman.

The extension was signed with Talisman Malaysia Ltd, Talisman Malaysia (PM3) Limited (Talisman), PETRONAS Carigali Sdn. Bhd. (PCSB) and PetroVietnam Exploration Production Corporation Limited (PVEP).

The PM3 CAA project involves offshore fields located throughout a 2008km² area in the overlapping zone between Malaysia and Vietnam.

Under the terms of the PSC, Talisman will continue to operate Block PM3 CAA with equity interest of 35 percent while PVEP will own 30 percent of the equity, with the remaining 35 percent held by PCSB. Under the agreement Talisman will operate the block until 2027.

The contract extension will maintain the production from five producing fields namely the Bunga Orkid, Bunga Kekwa, Bunga Raya, Bunga Tulip and Bunga Saroja fields. Other activities include further development of discovered fields within the Malaysia-Vietnam offshore Commercial Arrangement Area.

The partners are committed to conduct near field exploration, brownfield development and studies on Enhanced Oil Recovery (EOR) amounting to #500 million of additional minimum work commitment, the two companies said in a joint statement.