KUALA LUMPUR (July 28): Yinson Holdings Bhd (KL:YINSON) has secured a contract estimated to be US$600 million (RM2.5 billion) for the provision of a newbuild floating storage and offloading (FSO) vessel to serve the Block B gas field located offshore Vietnam.
The contract was awarded by Phu Quoc Petroleum Operating Company (PQPOC) to Yinson’s joint venture company, PTSC South East Asia Pte Ltd (PTSC SEA), said Yinson in a statement on Monday (July 28) announcing the signing of the lease and operate contract.
The FSO contract has a firm tenure of 14 years with an extension option of up to nine additional years.
It is worth highlighting that the estimated contract value of US$600 million also includes the portion under the potential extension period.
PTSC SEA is a 49:51 joint venture between Yinson Production Capital Pte Ltd — a wholly-owned subsidiary of Yinson — and PetroVietnam Technical Services Corporation (PTSC).
This new FSO brings Yinson Production’s fleet size to 11.
PQPOC was established and nominated by the Vietnam National Industry-Energy Group (Petrovietnam) to undertake its rights and obligations as the operator of Blocks B&48/95 and 52/97 and the Area of Joint Development in Blocks B&48/95 and 52/97 (Vietnam Block B Gas project).
The framework for the project development is to supply 5,073.5 million standard cubic metres of gas annually to targeted customers in three areas of the southwest region in Vietnam.
This contract is expected to achieve first condensate in the third quarter of 2027, said the company.
Yinson said the contract is expected to contribute positively to the group’s earnings and net assets per share.
The latest contract comes after the awarding of a contract to PTSC Asia Pacific (PTSC AP) for the provision, charter, operation and maintenance of an FSO for Murphy Oil’s Lac Da Vang project in November last year.
PTSC AP is also a joint venture between Yinson Production (49%) and PTSC (51%). The contract’s tenure is 10 years, with options to extend for up to five years, with an estimated value of US$416 million.
Last December, Yinson Production also announced the extension of the charter contract for its FPSO PTSC Lam Son — jointly-owned by Yinson Production (49%) and PTSC (51%) for 18 months until June 30, 2026. The contract value is estimated at US$36.2 million. FPSO PTSC Lam Son has been operating for PetroVietnam in Block 1-2/97 offshore Vietnam since 2014.
On Monday, Yinson’s share price settled unchanged at RM2.39, giving the company a market capitalisation of RM7.68 billion.