KUALA LUMPUR (April 4): Yinson Holdings Bhd shares fell 5.12% in early trade today after the company said that its 49% joint venture PTSC Asia Pacific Pte Ltd had received a notice of termination for convenience from PetroVietnam Technical Services Corp (PTSC) under a bareboat charter contract entered into in 2012. The bareboat charter contract will terminate on June 30, 2017.

At 9.20am, Yinson lost 17 sen to RM3.15 with 1.53 million shares traded.

PTSC Asia Pacific is a 51:49 joint venture between PTSC and Yinson.

On March 31, 2017, Lam Son Joint Operating Company (LSJOC), the operator of Lam Son field, had issued a notice of termination to PTSC for FPSO PTSC Lam Son. The service of the notice of termination is pursuant to the liquidation of LSJOC, which is scheduled for June 30, 2017.

Yinson yesterday said PTSC served a notice of termination for convenience to PTSC Asia Pacific under the Bareboat Charter.

The note filed with Bursa Malaysia said that PTSC Asia Pacific is entitled to an early termination payment from PTSC although the exact quantum will be ascertained in accordance with the terms of the Bareboat Charter.

LSJOC is jointly owned by PetroVietnam Exploration Production Corporation, a wholly-owned subsidiary of Vietnam Oil & Gas Group (PetroVietnam) and PC Vietnam Limited, a wholly-owned subsidiary of Petroliam Nasional Bhd (Petronas).

PTSC has informed PTSC Asia Pacific that PetroVietnam, the ultimate holding company of one of the shareholders of LSJOC, has the intention for the petroleum operations to continue at Lam Son field despite the liquidation of LSJOC.

It added that it is the intention of PetroVietnam to continue to utilize FPSO PTSC Lam Son.

The filing with Bursa said there is no material adverse financial impact to PTSC Asia Pacific and Yinson will continue to work together with PTSC on future developments during the transition period.