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

KUALA LUMPUR, July 28 (Bernama) -- Yinson Holdings Bhd, through its joint venture PTSC South East Asia Pte Ltd (PTSC SEA), has 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.

Yinson said the contract, effective today, covers the provision, charter, operation, and maintenance of the FSO vessel. “The contract is estimated to have a duration of 14 years, with an option for a potential extension of up to nine additional years,” it said in a stock exchange filing.

The total contract value, including the possible extension period, is estimated to be around US$600 million.

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.

Additionally, the company said risks during the construction phase include project execution challenges such as 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,” it said.

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

“None of the directors or major shareholders of Yinson, nor any persons connected with them, have any interest, direct or indirect, in the contract,” it added.

-- BERNAMA