Modec’s FSO could stay in Vietnam until 2028

Japanese provider of floating oil production and storage systems Modec has secured a contract extension for the Rang Dong floating storage unit (FSO)

The contract extension is with Japan Vietnam Petroleum Company Ltd. (JVPC), a subsidiary of JX Nippon Oil & Gas Exploration Corporation.

Located in the Rang Dong oil field which in Block 15-2, offshore southern Vietnam, the FSO has been storing and offloading oil there since November 2008.

The original charter was for nine (9) years – until October 2017 – with options for extension every year thereafter up to five additional years. The firm period has been extended to April 2025, with three (3) one-year extension options (until April 2028).

Before the start of the time charter, Modec carried out the engineering, procurement, construction, installation and commissioning of this new built FSO. A Modec group member, SOFEC, Inc. designed and provided the external turret mooring system for the FSO.

Moored in water depth of approximately 60 meters, the FSO has a storage capacity of 350,000 barrels and a total inlet capacity of 60,000 barrels per day.

“The FSO had successfully offloaded nearly 64 million barrels of crude oil since the first day of the charter to today, and notably, has been operating without a Lost Time Injury (LTI) and maintaining 99.9% Operational Uptime up to date,” Modec said on Monday.