The Malaysian national oil and gas corporation's group president and CEO Tengku Muhammad Taufik made the remarks during a meeting with Vietnamese Prime Minister Le Minh Hung in Hanoi last Friday, on the sidelines of a visit to Vietnam by a Petronas delegation.

Taufik thanked the Vietnamese leader for supporting Petronas’s cooperation and projects in Vietnam. He also conveyed greetings from Malaysian Prime Minister Anwar Ibrahim to Hung.

Reporting on effective cooperation with Vietnamese ministries, agencies and Petrovietnam in recent years, which he said offered considerable prospects, Taufik said Petronas wanted to deepen ties and work with Petrovietnam and Vietnamese partners to advance their shared vision, particularly under their Strategic Alliance Agreement (SAA).

The cooperation aims to help ensure energy security at affordable costs and support economic growth in both countries, in line with directives from the two prime ministers and the governments’ shared priorities in the sector. The parties also seek to advance the Vietnam-Malaysia-Singapore (VMS) power grid interconnection project.

Welcoming the Petronas chief to Vietnam, Hung acknowledged the group’s efforts and contributions to oil and gas exploration, development and production in both Vietnam and Malaysia.

The prime minister praised Petronas and Petrovietnam for building a strong, long-standing partnership over more than 30 years through joint efforts to support Vietnam’s energy security, sustainable development and economic growth, as well as those of the wider Asian region.

He described the two groups as trusted partners and an example of effective, long-term strategic cooperation that benefits both sides.

The cabinet leader also stressed the importance of maintaining stable operations at the PM3-CAA oil and gas project in the overlapping area between Vietnam and Malaysia.

The project has produced a cumulative 250 million barrels of oil and 43 billion cubic meters of gas, generating total revenue of more than $25 billion. It plays a key role in ensuring energy and food security and supporting economic development in Vietnam’s southwestern region.

Noting that closer cooperation between the two groups had also been an important topic in his discussions with the Malaysian prime minister, Hung said the Vietnamese government supported Petronas’s continued studies and expansion of investment, as well as the signing of new petroleum contracts for open blocks on Vietnam’s continental shelf.

Such activities must ensure investment efficiency and balance the interests of all stakeholders, including the state, businesses and investors, while complying with Vietnamese law and international law, he said.

Hung noted Vietnam was continuing to amend and improve regulations governing oil and gas, electricity, investment and land, among other areas. The country was also revising the Power Development Plan VIII (PDP VIII) and significantly streamlining administrative procedures to facilitate electricity and energy projects and meet the substantial power demand generated by economic growth.

The prime minister praised Petronas’s coordinating role and the active participation of PTSC, a subsidiary of Petrovietnam, in the Vietnam-Malaysia-Singapore (VMS) power grid interconnection project.

The Vietnamese government supports the project as a symbol of regional energy connectivity and a contribution to realizing the ASEAN Power Grid vision, he said.

Hung congratulated Petronas and Petrovietnam on recently signing the SAA, which elevates their relationship from cooperation on individual projects to a strategic alliance spanning the entire energy value chain. The agreement also helps give practical effect to the Vietnam-Malaysia Comprehensive Strategic Partnership.

He urged the two groups to put their joint coordination mechanism into operation soon and translate the agreement into substantive, effective projects and cooperation programs.

The Vietnamese government would continue to facilitate projects that comply with national plans and Vietnamese law, Hung said, adding that ministries and agencies would be instructed to support businesses and investors and help resolve difficulties arising during project implementation.

Hung expressed his hope that cooperation between Petronas and Petrovietnam would continue to grow and become a successful example of the Vietnam-Malaysia Comprehensive Strategic Partnership. He also conveyed his greetings to the Malaysian prime minister.