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A LANDMARK energy cooperation agreement between Malaysia’s Petroliam Nasional Bhd (Petronas) and Vietnam Oil and Gas Group (Petrovietnam) is poised for finalisation in May.
The deal, New Straits Times reported, expected to involve multi-billion-dollar investments, will play a pivotal role in strengthening bilateral ties and advancing energy development in both nations.
Prime Minister Datuk Seri Anwar Ibrahim revealed that he has invited Petronas president and CEO, Tan Sri Tengku Muhammad Taufik, to accompany him on an official visit to Vietnam, with the aim of accelerating discussions with Petrovietnam.
"The collaboration between Petronas and Petrovietnam involves investments worth billions and will provide significant returns for the country," said Anwar.
"That is why I have asked Petronas' President (Tengku Muhammad Taufik) to join me on this visit to Vietnam so we can conclude these discussions. If he does not attend, the talks may be delayed."
The partnership between the two energy giants will cover both upstream and downstream activities, including gas and renewable energy initiatives.
The companies also plan to work together in enhancing power generation and grid connectivity between Vietnam and Malaysia, with an emphasis on renewable energy solutions.
This aligns closely with the broader goal of the ASEAN Power Grid (APG), which seeks to improve energy security in the region through enhanced energy infrastructure integration.
The agreement follows the signing of a Memorandum of Cooperation (MoC) in 2023, which laid the groundwork for joint ventures in areas such as decarbonization, sustainable energy, Liquefied Natural Gas (LNG), and petrochemicals.
Tengku Muhammad Taufik and Petrovietnam CEO Dr. Le Manh Hung signed the MoC, marking a significant step towards mutual collaboration in the energy sector.
Speaking about the agreement, Tengku Muhammad Taufik said the partnership represents a shared vision between Petronas and Petrovietnam to deliver energy solutions that drive economic growth while working towards a low-carbon future.
“As we carry out our responsibilities as national energy companies, we aim to combine our technological capabilities and expertise to develop energy solutions in both hydrocarbons and cleaner energy," he said.
“The ambition of both parties is to continue offering pragmatic solutions to our respective countries and the region as part of a practical and responsible path towards a just energy transition.”
Petronas, which first explored opportunities in Vietnam in 1991, has been a pioneering investor in the country’s upstream sector.
The company has formed strategic partnerships with major industry players to advance Vietnam’s oil, gas, and petrochemical industries, further solidifying its role as a key player in the global energy market.