Yinson, PTSC extend deal for PTSC Lam Son FPSO off Vietnam

Malaysian FPSO provider Yinson has secured a contract extension for the PTSC Lam Son FPSO in Vietnam with Vietnam’s PTSC AP.

PTSC AP is a joint venture company between Yinson and Vietnam’s PTSC. PTSC Lam Son has been operating at Thang Long – Dong Do field since June 2014.

PTSC Lam Son FPSO; Source: PTSC

Yinson said last Thursday that the contract extension was signed for a further period of 12 months from 1 July 2021 to 30 June 2022.

The extension period consists of a firm period from 1 July 2021 to 31 December 2021 and an option period from 1 January 2022 to 30 June 2022. The value of the extension is estimated to be $18.1 million – equivalent to around RM75.17 million.

The 243-meter-long 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 vessel has been operating at the Thang Long – Dong Do fields in the Cuu Long Basin offshore Vietnam since it was converted to an FPSO by Singapore’s Keppel in 2014.

The previous deal for the PTSC Lam Son FPSO was signed in March 2020. The signed deal replaced an interim charter contract retroactively from 1 July 2017 to 30 June 2021.

To remind, the interim contract for the FPSO was extended eight times, the latest extension – before the long-term deal in March – was in mid-January 2020.