Hibiscus launches CCS study in joint Malaysia-Vietnam oil and gas field

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INDEPENDENT Malaysian oil and gas company Hibiscus Petroleum has awarded a contract to assess depleted gas wells in the South China Sea as potential CO2 storage sites.

The two-year contract, awarded to Malaysian oil and gas well services company Reservoir Link, covers a third-party subsurface review and technical assurance for Hibiscus’s carbon capture and storage (CCS) project in the PM3 Malaysia-Vietnam Commercial Arrangement Area (CAA). The award  follows Hibiscus’s own feasibility assessment completed last year. Reservoir Link said the contract marks its first CCS project. The scope of work includes subsurface workflow and methodology development, data input and assumptions, static and dynamic modelling, technical analysis and interpretation.

The PM3 area is a cluster of oil and gas reservoirs in the South China Sea operated by Hibiscus. The reservoirs are owned by Malaysian and Vietnamese state oil and gas companies Petronas and PetroVietnam, while Hibiscus holds a 35% stake. In 2025, Hibiscus signed a 20-year extension to operate the fields, which the company said will allow it to “economically pursue new well developments” and “tie-ins from nearby gas assets”. This suggests that captured CO2 could be used for enhanced oil recovery (EOR), raising questions about the net climate impact of the project despite its positioning as a CCS development.

Reservoir Link executive deputy chairman Thien Chiet Chai said: “CCS is set to become a significant market in the years ahead, and by securing this project, Reservoir Link is well-positioned to capture future opportunities and create long-term value.

“[Reservoir Link] remains committed to pursuing strategic opportunities across both conventional oil and gas and emerging low-carbon segments to drive sustainable growth for its shareholders.”

Hibiscus produced 38.8m boe in 2024/25, up from 32.7m boe the previous year, while its production emissions intensity reduced from 207 tCO2e/kboe to 120 tCO2e/kboe. The company does not provide estimates for downstream emissions from oil and gas combustion.