PETALING JAYA, Hibiscus Petroleum Bhd, through its wholly-owned unit Hibiscus Oil & Gas Malaysia Ltd, has entered into an agreement with PetroVietnam Exploration Production Corp Ltd (PVEP), the operator of Block 46/13 PSC offshore Vietnam.
The agreement will allow production from Block 46/13 to be tied into and processed via the existing facilities under the PM3 Commercial Arrangement Area (CAA) Production Sharing Contract, which are operated by Hibiscus.
In its Bursa Malaysia filing, Hibiscus said the deal will make better use of available capacity at the PM3 CAA PSC facilities, while setting out a commercial framework for managing production handling and cost allocation related to Block 46/13.
The company added that the arrangement is expected to enhance operational efficiency and strengthen collaboration between the two parties, although no financial terms of the agreement were revealed.
