Yinson JV Secures US$600 Mil FSO Contract For Vietnam Offshore Project

Yinson Holdings Bhd, through its joint venture PTSC Southeast Asia Pte Ltd (PTSC SEA), secured a contract with Vietnam’s Phu Quoc Petroleum Operating Company (PQPOC) to provide and charter a floating storage and offloading (FSO) vessel for the offshore Block B Field in southwest Vietnam.

The contract – valued at US$600 – covers the provision, charter, operation and maintenance of the FSO vessel and it is estimated to have a duration of 14 years with an option for a potential extension of up to nine additional years.

The FSO vessel will support gas production in the area, which aims to supply 5,073.5 million standard cubic metres (MMscm) of gas per year to customers in the Ca Mau and O Mon power complexes.

Yinson pointed out that among the risks during construction phase include project execution challenges like schedule delays and cost overruns.

“Such risks are inherent in Yinson’s business and are expected to be mitigated by Yinson’s experience and expertise in the FSO industry, as well as internal controls and a project execution plan to ensure fulfilment of the required work scope under the contract,” the company said in a statement.

While the contract is expected to not have any effect on the company’s share capital or shareholding structure, it is expected to contribute positively to the earnings and net assets per share of the Yinson Group.

Sources: Logistics.asia