Malaysia’s Yinson Enters into FPSO Deal with Vietnam’s PTSC

Malaysia's Yinson Enters in FPSO Deal with Vietnam's PTSC

Malaysia’s Yinson Holdings Berhad has together with Vietnam’s Petrovietnam Technical Services Corporation (“PTSC”) established a Joint Venture Company for the construction and charter of an FPSO vessel.

The companies have agreed to jointly provide the FPSO to PTSC and PTSC will onward charter the ship to Lam Son Joint Operating Company (“LSJOC”).

The tenure of the contract is for a firm period of seven years with the option to extend on an annual basis for a  further period of three years.The total contract value, including the three-year option, is USD737.30 million (approximately RM2.35 billion).

The bareboat charter contract is expected to commence in June 2014. Malaysia’s The Edge has cited an industry source which says that the FPSO will be converted from an old tanker.

Vietnam’s oil production is forecast to increase by 40 tb/d in 2012 to average 0.39 mb/d, flat from the previous month. The growth is seen to be supported by the Te Giac Trang project  ramp-up, which is expected to reach its peak production of 55 tb/d by the end of 2012.

Lam Son is a Joint Operating company established by Petronas Carigali of Malaysia (50%) and PetroVietnam Exploration Production Corporation (PVEP) of Vietnam (50%). Currently LSJOC is conducting exploration and production activities in Block 01/97 & 02/97 offshore Vietnam. This area is north-eastern of Cuu Long Basin, 169 km eastern from Vung Tau, 26 km from Ruby field, 30 km from Topaz field and 20 km from Rang Dong field.

Offshore Energy Today Staff, June 11, 2012