FSO staying five more years at gas fields off Vietnam

Malaysia’s Yinson, through its joint venture company with PetroVietnam Technical Services Corporation (PTSC), PTSC South East Asia (PTSC SEA), has received a five-year extension of the bareboat charter contract for a floating, storage and offloading (FSO) vessel, which is working at gas fields offshore Vietnam.

Yinson revealed the five-year extension for the FSO PTSC Bien Dong 01 on Tuesday, 6 June 2023. According to the company, the extension via the addendum entered by PTSC and PTSC SEA on 2 June 2023 sets an extension period for the FSO’s contract from 4 June 2023 to 3 June 2028.

Flemming Grønnegaard, Yinson Production’s Chief Executive Officer, commented: “We are pleased to continue our long-term and close working relationship with PTSC, with whom we have partnered for a decade. The extension is a mark of the excellent working relationship that we have, leading to excellent safety and uptime track records for the asset. We look forward to our continued partnership.”

The estimated value of this extension deal is $74.6 million (about RM 344 million). PTSC SEA, established in 2011, is a joint venture between PTSC and Yinson, for the investment and supply of the FSO PTSC Bien Dong 01 to Bien Dong Petroleum Operating Company (Bien Dong POC) for the operation offshore Vietnam.

Furthermore, PTSC SEA is 49 per cent and 51 per cent owned by Yinson and PTSC, respectively. The FSO PTSC Bien Dong 01 has been operating in blocks 05-2 and 05-3 since 4 June 2013. These blocks are located in the Nam Con Son Basin and contain two commercial gas fields, Hai Thach and Moc Tinh, discovered in 1993-1995.

The FSO PTSC Bien Dong 01 comes with a storage capacity of 350,000 bbls. This FSO was originally hired on a ten-year deal and three more extension options are still available. If exercised, this will extend the vessel’s stay offshore Vietnam until 2033.