First steel cut for Yinson Production’s Asia-bound floating storage and offloading unit

December 24, 2025, by Melisa Cavcic

Malaysia’s Yinson Production, a subsidiary of Kuala Lumpur-based energy infrastructure and technology company Yinson, has revealed a steel cutting ceremony for a newbuild floating storage and offloading (FSO) unit, which will be deployed at the Block B gas field off the coast of Vietnam, Southeast Asia.

Yinson Production held the first steel cutting ceremony for the FSO Block B on Friday. This milestone is interpreted to mark another important project for Vietnam’s offshore energy sector, reflecting the strong trust placed in Yinson Production by the Vietnam National Industry – Energy Group (Petrovietnam), which builds on the firm’s long partnership with PTSC.

“It is a relationship shaped by a proven track record in delivering complex offshore assets safely, reliably, and with long-term performance in mind. The ceremony itself was rich in symbolism – the first cut of steel, the sound of firecrackers, and the shared sense of purpose among teams and partners,” explained the Malaysian giant.

The construction of the FSO Block B is taking place at Nantong Strongwind Shipyard in China. The FSO Block B is expected to be operational by Q3 2027 and will serve the Block B gas field, offshore Vietnam.

Designed to be stationed for 25 years without drydocking, the FSO is capable of storing up to 350,000 barrels of condensate. This will be a double-hull, turret-moored unit installed in a water depth of 80 meters.

Phu Quoc Petroleum Operating Company (PQPOC), established by Petrovietnam, was nominated to undertake its rights and obligations as the operator of blocks B&48/95 and 52/97 and the area of joint development, known as the Vietnam Block B gas project.

These blocks are situated southwest offshore Vietnam in a water depth of 77-80 meters, about 250 kilometers and 400 kilometers, respectively, to the Ca Mau Province and the O Mon Power Complex.

Yinson Production, which is using the lease and operate financial model to navigate the fast-evolving energy market landscape, recently disclosed its plans to explore two new project bonds in 2026, pursuing refinancing of the FPSOs Atlanta in Brazil and Agogo in Angola.