Yinson Production and PTSC lock in financing for Southeast Asian gas project’s FSO

Malaysia’s Yinson Production, a subsidiary of Kuala Lumpur-based energy infrastructure and technology company Yinson, and its joint venture (JV) partner, PTSC, have secured multimillion-dollar funding for the partial construction of a newbuild floating storage and offloading (FSO) unit, destined to be deployed at the Block B gas field off the coast of Vietnam, Southeast Asia.

The JV partners have obtained a $131.5 million senior secured bank financing for the FSO bound to work at the Block B project offshore Vietnam. With a maturity of 12 years post-delivery, aligned with the underlying project tenor, this financing facility, which was structured and arranged in-house, will partly finance the construction of the FSO.

Yinson Production emphasized: “We continue to see significant benefits in the lease-and-operate model for our clients: reducing upfront capital requirements while delivering compelling overall economics.

“This transaction further demonstrates our ability to deliver tailored, long-term financing solutions for lease-and-operate projects, underpinned by our deep and diversified access to capital. We thank Mizuho and UOB for their support and partnership in this financing.”

The FSO is currently being built in China for PetroVietnam’s Phu Quoc Petroleum Operating Company (PQPOC), following the cutting of the first steel in December 2025. The construction is anticipated to be complete in 2027, so that the vessel can be deployed in Block B under a 14-year firm charter with up to nine years of extension options.

The Malaysian giant, which owns the vessels together with PTSC, previously explained that the double-hull, turret-moored FSO, which was designed to be stationed for 25 years without drydocking, would be capable of storing up to 350,000 barrels of condensate. This unit will be installed in a water depth of 80 meters.

Blocks B&48/95 and 52/97, where the Vietnam Block B gas project is situated, are located southwest offshore Vietnam in a water depth of 77-80 meters, about 250 kilometers and 400 kilometers, respectively, to the Ca Mau Province and the O Mon Power Complex.

As Markus Wenker, Yinson Production’s CFO, highlights, what stands out when it comes to this financing is the rather long tenor of more than 13 years door-to-door, including 12 years post-delivery, against a backdrop of shortening maturities due to the Basel regulations.

Wenker also points out that the FSO is the second of two sisterships Yinson Production currently has under construction in China, which are destined for Vietnam. The other unit, which is being built for Murphy Oil with expected completion of construction this year, is financed separately and also owned by the Malaysian player’s JV with PTSC.

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