PM3-CAA

PM-3 Commercial Arrangement Area (CAA) Oil and Gas Project Profile

Location and Geography

The PM-3 CAA project is located in the overlapping zone between Malaysia and Vietnam, specifically in the South China Sea. The project area spans approximately 1,350 km².

Operators and Partners

• The project is currently operated by Hibiscus Petroleum Bhd, although it was initially operated by Talisman Malaysia.
• The partners in the project include:
  • Hibiscus Petroleum Bhd
  • Petroliam Nasional Bhd (Petronas)
  • Vietnam National Oil and Gas Group (PetroVietnam).

Historical Operators and Equity Stakes

• Initially, Talisman Malaysia was the operator with a 41.44% interest. Other partners included Petronas Carigali with 46.06%, and PetroVietnam Investment & Development Company with 12.5%.

Fields and Reserves

• The PM-3 CAA project involves the development of several offshore fields, including:
  • West Bunga Kekwa
  • East Bunga Kekwa-Cai Nuoc
  • East Bunga Raya
  • West Bunga Raya
  • NW Bunga Raya
  • Bunga Seroja
  • Bunga Tulip
  • Bunga Orkid/Bunga Pakma gas field complex.
• The field has recovered 91.05% of its total recoverable reserves as of recent reports.

Production History and Capacity

• Phase 1 oil production commenced in July 1997.
• Phases 2 and 3 started up in 2003 and 2009, respectively, with peak production achieved in early 2004.
• The project has a production capacity of 60,000 barrels of oil per day (bbls/d) and 270 million cubic feet of gas per day (mmcf/d).

Infrastructure and Facilities

• The project includes:
  • Four wellhead platforms
  • A central processing platform
  • A compression annex platform
  • A floating storage offloading (FSO) vessel
  • Inter-field pipelines
  • A 24-inch, 170 km gas pipeline from PM-3 CAA to the Resak Platform in Malaysia, and an 18-inch, 330 km gas pipeline from PM-3 CAA to Ca Mau in southern Vietnam.

Development and Drilling

• Development drilling involved a 60-well program that started in October 2002 and continued through 2004.
• Notable infrastructure installations include the Bunga Raya A 9,000-ton central processing platform and the conversion of a crude tanker into the FSO Orkid, which was completed in 2003.

Export and Sales

• Gas sales are under long-term contracts to Petronas and PetroVietnam. Petronas takes the entire sales gas volume until the Ca Mau project in Vietnam is ready to accept gas.

Current Operations and Future Outlook

• As of 2022, the operational performance of the PM-3 CAA asset has been good, with stable operations and strong gas demand from both Petronas and PetroVietnam. Ongoing activities include well interventions, major maintenance, and the implementation of Electrical Submersible Pump projects to enhance production.
• Production is expected to continue until the field reaches its economic limit in 2029, based on economic assumptions.

Contractors and Service Providers

• Several contractors have been involved in the project, including:
  • Hyundai Heavy Industries (HHI)
  • MMCOG
  • FoundOcean
  • MMHE
  • SDE
  • Kavin Engineering
  • Petrofac RNZ
  • Bluewater
  • BC Petrochemical
  • ICON Engineering
  • Noble Denton.

Geology and Water Depth

• The field is located in shallow water with a depth of approximately 177 feet.