Hanoi (VNA) – Prime Minister Le Minh Hung received Tengku Muhammad Taufik, President and Group CEO of Malaysia’s national oil and gas enterprise PETRONAS, in Hanoi on October 16, affirming the Government’s support for the group to expand investment and sign new contracts for open blocks on Vietnam’s continental shelf.

Welcoming the PETRONAS leader, PM Hung commended the group’s efforts and contributions to oil and gas exploration and production in both Vietnam and Malaysia.

He praised PETRONAS and the Vietnam National Industry-Energy Group (Petrovietnam) for maintaining a strong partnership for more than 30 years, with joint efforts supporting Vietnam’s energy security, sustainable development and economic growth, as well as those of the Asian region. Their cooperation has become a trusted partnership and a model of effective, long-term strategic collaboration for mutual benefit, he said.

The PM stressed the importance of maintaining stable operations at the PM3-CAA oil and gas project in the overlapping area between Vietnam and Malaysia. One of the most successful projects of its kind, it has produced a cumulative 250 million barrels of oil and 43 billion cubic metres of gas, generating total revenue of more than 25 billion USD. The project plays a vital role in ensuring energy and food security and promoting economic development in Vietnam’s southwestern region.

Noting that stronger cooperation between the two groups had also featured prominently in his discussions with the Malaysian Prime Minister, PM Hung affirmed that such cooperation must ensure investment efficiency, balance the interests of the State, businesses and investors, and comply with Vietnamese law and international law.

Vietnam is continuing to revise and improve regulations governing oil and gas, electricity, investment and land, while adjusting Power Development Plan VIII and substantially streamlining administrative procedures to facilitate electricity and energy projects. These efforts aim to meet the substantial power demand serving economic growth, he added.

Praising PETRONAS for coordinating the Vietnam-Malaysia-Singapore (VMS) power grid interconnection project, as well as the active participation of Petrovietnam subsidiary PTSC, he affirmed that the Vietnamese Government supports the project as a symbol of regional energy connectivity and an important step towards realising the ASEAN Power Grid vision.

PM Hung also congratulated PETRONAS and Petrovietnam on their recent signing of a Strategic Alliance Agreement (SAA), which, he said, helps elevate cooperation from individual projects to a strategic alliance spanning the entire energy value chain, and translate the Vietnam-Malaysia Comprehensive Strategic Partnership into concrete outcomes. He urged both sides to operationalise their joint coordination mechanism soon and develop practical, effective cooperation programmes and projects.

The Vietnamese Government will continue facilitating projects in line with national plans and Vietnamese law, while directing relevant ministries and agencies to support businesses and investors and address difficulties arising during implementation, he stated, hoping that PETRONAS-Petrovietnam collaboration will continue to grow and become a model of successful cooperation under the Vietnam-Malaysia Comprehensive Strategic Partnership.

Reporting on promising cooperation with Vietnamese ministries and agencies and Petrovietnam, Tengku Muhammad Taufik said PETRONAS wishes to deepen ties with its Vietnamese partners and advance their shared vision, particularly through the SAA. The group aims to help ensure affordable energy supplies and support economic growth in both countries, in line with the directions of the two Prime Ministers and the shared priorities of both governments.

PETRONAS also wants to expand cooperation with Vietnam in long-term liquefied natural gas (LNG) supplies and work with Petrovietnam and other Vietnamese enterprises to develop LNG infrastructure, as well as emerging energy value chains involving offshore wind power, hydrogen, carbon capture and storage, and technology transfer, he added./.