Yinson FPSO staying longer in Vietnam

Malaysia’s Yinson, through its joint venture company with PetroVietnam Technical Services Corporation (PTSC), PTSC South East Asia (PTSC SEA), has secured another long-term contract extension for an FPSO, which is working offshore Vietnam.

FPSO PTSC Lam Son; Source: Yinson

PTSC AP is a joint venture company between Yinson and PetroVietnam Technical Services Corporation, where Yinson holds a 49 per cent interest while PTSC holds the remaining 51 per cent. According to Yinson, a 12-month extension has been received for the bareboat charter contract of the FPSO PTSC Lam Son, with a further automatic extension of six months.

The company explains that the addendum entered into by PTSC and PTSC AP on 29 June 2023 sets an extension of the charter period from 1 July 2023 to 30 June 2024, and a further automatic extension until 31 December 2024. The value of the bareboat charter contract – including the automatic extension period – is estimated at $27.3 million (RM 127.9 million).

Flemming Grønnegaard, YP Chief Executive Officer, commented: “Since the start of this joint venture in 2012 and original charter commencing June 2014, we have developed a strong and productive partnership with our partner PTSC. Thrilled with the recent contract extension announcement, YP remains committed to deliver exceptional safety standards and high uptime with FPSO PTSC Lam Son.”

The FPSO PTSC Lam Son 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 vessel has been operating at the Thang Long – Dong Do fields in the Cuu Long Basin offshore Vietnam since it was converted into an FPSO by Singapore’s Keppel in 2014.

Recently, Yinson also got a five-year extension for the FSO PTSC Bien Dong 01 offshore Vietnam. This FSO was originally hired on a ten-year deal and three more extension options are still available. If exercised, they will extend the vessel’s stay offshore Vietnam until 2033.