Petrovietnam lacks the funds to porgress its plans, and as a result the cash-strapped state-owned firm must continue selling gas to Malaysia’s Petronas until 2008.

The agreement between the two national firms had a clause under which Petrovietnam was to take over the gas output of the two blocks this year. The combined output of the two acreages has been estimated at 1.25 billion cubic metres of gas per annum. Both blocks also produce Bunga Kekwa crude.

But Petrovietnam did not have the US$300 million needed to build a pipeline linking PM3-CAA and Cai Nuoc to end-users, the weekly reported. Petrovietnam also lacks the US$493 million needed for Cai Nuoc fertiliser plant project.