Petronas, Petrovietnam to expand energy cooperation

Petronas, Petrovietnam to expand energy cooperation

Malaysia’s national oil and gas company Petronas will continue working with Petrovietnam on oil and gas exploration and production, LNG supply and renewable energy development in the coming years.

According to Aimy Zairin Mohamed, Petronas’ country chairman for Vietnam, the group will continue to expand cooperation with Vietnam National Industry – Energy Group (Petrovietnam), focusing on oil and gas exploration and production, liquefied natural gas (LNG) supply, renewable energy and emerging energy sectors. The cooperation aims to diversify energy supplies and meet the economy’s growing demand. These areas offer considerable scope for Petronas and Petrovietnam to deepen their partnership in the years ahead.

“The Vietnamese government’s target of achieving double-digit economic growth is gradually becoming a reality. At such a high growth rate, the energy needed to sustain that growth becomes particularly important. It is like driving a car at high speed, the vehicle needs sufficient energy to keep running. We are excited to accompany Vietnam on this journey, particularly alongside our partner Petrovietnam,” Mohamed said at a press briefing in Ho Chi Minh City on October 20.

According to Mohamed, the contract for the PM3 Commercial Arrangement Area, located along the maritime boundary between Vietnam and Malaysia, has been extended for a further 20 years to 2047.

The area is estimated to hold around 60 million barrels of oil equivalent in remaining reserves. Gas produced there is transported to Vietnam through the Ca Mau gas pipeline system.

Aimy Zairin Mohamed, country chairman for Vietnam, Petronas. Photo: Petronas

Alongside production activities, the two groups have been implementing a joint technical study agreement since April 2025 to assess hydrocarbon exploration prospects in several offshore blocks through geological and geophysical analysis.

Mohamed added that Petronas is continuing to seek opportunities to develop new resources, including projects in Blocks 102 and 106 offshore in the Song Hong Basin.

In the LNG sector, Petronas delivered its first cargo to PetroVietnam Gas Joint Stock Corporation in April 2025 to supplement domestic gas supplies and help meet the power and fuel needs of industrial customers.

“Oil and gas resources are finite and will eventually be depleted. Our role is to work with our partners to continuously explore for oil and gas in Vietnam’s sedimentary basins. We also have the capacity to supply LNG and benefit from the geographical proximity between supply sources and demand in Vietnam. Through cooperation, we can help address high-demand amid limited supply,” Mohamed said.

Beyond oil and gas and LNG, renewable energy is another key area for Petronas’ cooperation in Vietnam.

The Strategic Alliance Agreement signed by Petronas and Petrovietnam in Hanoi on October 16, establishes a framework for cooperation across upstream operations, LNG, downstream activities, renewable energy, and carbon capture and storage (CCS). In the area of CCS, Petronas will share its practical experience in Malaysia with Petrovietnam to explore potential implementation, helping Vietnam work towards its net-zero emissions target by 2050.

Energy cooperation between the two groups also helps translate the Vietnam-Malaysia Comprehensive Strategic Partnership into practical initiatives. The Vietnam-Malaysia-Singapore project explores the feasibility of exporting offshore wind power from Vietnam to Malaysia and Singapore via subsea cables, with a view to advancing the ASEAN Power Grid. The plan remains subject to the results of feasibility assessments and relevant approvals.

“Petronas and Petrovietnam have complementary strengths. As two national oil and gas companies, we are well positioned to jointly address the challenges of energy security, affordability and sustainability. Our ambition is clear: to help build an energy system that enables Vietnam to continue growing, with energy that is secure, affordable and increasingly sustainable,” he added.

VIR