Yinson, PetroVietnam set up joint venture company
Yinson Clover Ltd (YCL), a subsidiary of Malaysia’s Yinson Holdings, has entered into a consortium agreement with PetroVietnam Technical Services Corporation (PTSC) for the execution and performance of a bareboat charter.
To clarify, Yinson recently secured an FPSO contract with Talisman Vietnam. The contract is for ten years with extension options with a total value of the bareboat charter of around $1.0 billion, options included.
One of the requirements for the signing of the contract was a novation agreement between Yinson, Talisman, and PTSC for the novation of all rights and liabilities under the contract to PTSC.
Yinson Holdings said in a statement on Monday that its subsidiary, Yinson Clover, entered into the consortium agreement with PTSC on May 19, 2017. A 51 percent share in the JV will be owned by PTSC while the remaining 49 percent will be held by YCL.
Under the proposed joint venture, the two companies will jointly undertake the execution and performance of the bareboat scope of work, including the bareboat charter of the FPSO under the time charter contract.
Providing the rationale behind the forming of the JV, Yinson said that the joint venture represented a timely opportunity for the company and its subsidiaries to replenish its order book in a period of challenging market sentiment and industry outlook.
“The consortium agreement shall develop and establish contractual arrangements, based on a consortium relationship with the rights, obligations, and responsibilities in relation to the respective scope pending the finalization and award of the bareboat charter contract,” said Yinson.
It is worth noting that, to date, Yinson completed the delivery of one FPSO and one FSO via its participation in two separate joint venture companies with PTSC. Both of those vessels have been deployed offshore Vietnam.