Yinson Holdings Secures US$600 Million Vietnam FPSO Charter Contract Yinson Holdings Bhd's joint venture has secured a significant long-term charter contract worth an estimated US$600 million (RM2.54 billion) to provide, operate and maintain a floating production, storage and offloading (FPSO) vessel for offshore Vietnam operations. 

The contract was signed through PTSC South East Asia Pte Ltd (PTSC SEA), marking a major business development for the Malaysian company.

Contract Details and Structure

PTSC SEA, which is Yinson's 49:51 joint venture with PetroVietnam Technical Services Corp, signed the charter agreement with Phu Quoc Petroleum Operating Company (PQPOC) yesterday. The contract spans 14 years as a firm charter, with an additional option to extend for up to nine more years. 

According to Yinson's filing with Bursa Malaysia, the total contract value, including the possible extension period, is estimated to be in the region of US$600 million. The FPSO vessel will be deployed for the Block B gas field development offshore Vietnam. 

Under the terms of the agreement, PTSC SEA will be responsible for providing, operating and maintaining the floating production, storage and offloading vessel throughout the contract period.

Project Scope and Operations

The contract involves Vietnam's Block B gas project, which encompasses multiple operational areas. PQPOC was established and nominated by Vietnam's state oil and gas group, Petrovietnam, to undertake its rights and obligations as the operator of Blocks B&48/95 and 52/97, along with the area of joint development within those blocks. 

These areas are collectively referred to as the Vietnam Block B gas project. The floating production, storage and offloading vessel will serve as a critical piece of infrastructure for the offshore gas field development, enabling the extraction, processing, storage and transfer of natural gas from the underwater reserves.

Joint Venture Partnership

The contract was secured through PTSC South East Asia Pte Ltd, which represents a strategic partnership between Yinson Holdings and PetroVietnam Technical Services Corp. 

In this joint venture arrangement, Yinson holds a 49 percent stake while PetroVietnam Technical Services Corp maintains majority control with a 51 percent ownership position. This partnership structure allows Yinson to leverage local expertise and relationships in the Vietnamese market while contributing its technical capabilities in FPSO operations.

The collaboration with PetroVietnam Technical Services Corp provides access to Vietnam's offshore energy sector through an established local partner with deep market knowledge.