KUALA LUMPUR (Dec 30): Yinson Production, the offshore business arm of Yinson Holdings Bhd (KL:YINSON), has secured an 18-month extension for the bareboat charter contract of its floating production storage and offloading (FPSO) unit operating in offshore Vietnam.

The FPSO PTSC Lam Son — jointly owned by Yinson Production (49%) and PetroVietnam Technical Services Corporation (PTSC) (51%) through their joint venture, PTSC Asia Pacific Pte Ltd — has been operating for PetroVietnam in Block 1-2/97 offshore Vietnam since 2014.

In a bourse filing on Monday, Yinson said the extension is from Jan 1, 2025 to June 30, 2026, with an automatic six-month extension until Dec 31, 2026, subject to certain conditions.

The contract value, including the automatic extension period, is estimated at US$36.2 million (RM161.8 million), of which about US$17.7 million is attributable to Yinson Production.

Yinson Production chief executive officer Flemming Grønnegaard expressed delight at securing the contract extension and reaffirmed the company's commitment to delivering value and operational excellence throughout the lifecycle of FPSO PTSC Lam Son.

"The contract extension underscores the strong partnership we have built with PTSC as our joint venture partner and our shared ability to deliver reliable, high-quality operations to the client," he noted.

Yinson shares closed one sen or 0.4% higher at RM2.62 on Monday, giving the company a market capitalisation of RM8.4 billion.