Vietnam: Another short-term extension for Lam Son FPSO

Malaysian FPSO supplier Yinson has secured another short term extension for the Lam Son FPSO in Vietnam.

The company’s Vietnam JV PTSC AP on Thursday entered into a fifth addendum to its interim contract with Vietnam’s PTSC to further extend the tenure of the contract for a period of one month starting from November 1, 2019, to November 30, 2019.

PTSC AP is a joint venture company owned by Yinson and PetroVietnam Technical Services Corporation (PTSC) holding a 49% and 51% interest in the JV, respectively.

The value of the fifth extension is estimated to be valued at around $1.49 million (equivalent to approximately RM6.23 million).

The Lam Son FPSO is capable of producing 15,000-20,000 barrels of oil per day (bopd) and has a storage capacity of up to 650,000 barrels of oil. The FPSO has been operating at the Lam Son field offshore Vietnam. It started producing oil in 2014.

As at June 30, 2019, Yinson’s order book was around ~$4.94 billion, with long-term contracts for five FPSOs, and the only short-term contract being for the Lam Son FPSOs.

Yinson’s FPSOs have been deployed with clients in W. Africa and Southeast Asia. The company has recently marked an entry into the world’s biggest market for FPSO units – Brazil.

Two weeks ago,  Brazilian oil company Petrobras awarded two letters of intent to Yinson for the charter, operations, and maintenance of FPSO Marlim 2 for the Marlim revitalization project the estimated aggregate value of the contracts is bigger than Yinson’s whole order book (as at June 30, 2019), as the Marlim contracts are valued at $5.4 billion. The contract period is for 25 years from the date of the final acceptance.

Offshore Energy Today Staff

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