Yinson Production Secures Lease and Operate Contract for FSO Unit in Vietnam

Malaysia’s Yinson Production, a subsidiary of Kuala Lumpur-based energy infrastructure and technology company Yinson, has landed a lease and operate contract for a newbuild floating storage and offloading (FSO) unit destined to serve the Block B gas field off the coast of Vietnam, Southeast Asia.

This new FSO, which brings Yinson Production’s fleet size to 11, will advance Vietnam’s offshore gas ambitions, as the unit is designed to be stationed for 25 years without drydocking. Capable of storing up to 350,000 barrels of condensate, the FSO will be a newbuild, double-hull, turret-moored unit installed in a water depth of 80 meters.

The Malaysian giant’s contract, secured through its joint venture company PTSC South East Asia (PTSC SEA) established with PetroVietnam Technical Services Corporation (PTSC, 51%), is estimated to have a firm period duration of 14 years, with the option for a potential extension of up to nine additional years. The total contract value, including the extension period, is estimated to be around $600 million.

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This deal, awarded by Phu Quoc Petroleum Operating Company (PQPOC), established by the Vietnam National Industry – Energy Group (Petrovietnam), is said to mark a significant milestone in developing Vietnam’s energy infrastructure, demonstrating Yinson Production’s ongoing commitment to delivering reliable and efficient offshore solutions across the region.

Flemming Guiducci Grønnegaard, CEO of Yinson Production, noted: “This contract reflects our
strong partnership with PTSC and our long-standing commitment to Vietnam’s offshore energy sector. The Block
B FSO builds on our successful track record in the region and highlights our ability to deliver high-quality
offshore assets that meet the specific needs of our clients. We are proud to support Vietnam’s efforts to
enhance energy security and are confident that this project will deliver long-term value for all
stakeholders.”

PQPOC was nominated by Petrovietnam to undertake its rights and obligations as the operator of blocks B&48/95 and 52/97 and the area of joint development, known as the Vietnam Block B gas project. These blocks are located southwest offshore Vietnam in a water depth of 77-80 meters, about 250 kilometers and 400 kilometers, respectively, to the Ca Mau Province and the O Mon Power Complex.

Based on the development framework, the project will supply 5,073.5 million standard cubic meters of gas per year to the targeted customers in three areas of the southwest region of Vietnam, which contributes to fulfilling the rising energy demand in the southwest area and provides economic gains for the government, Petrovietnam, and the investors.

The deal follows the contract PTSC AP, a joint venture between Yinson Production and PTSC, secured in November 2024 for the provision, charter, operation, and maintenance of an FSO for Murphy Oil’s Lac Da Vang project.

The Malaysian firm obtained an 18-month extension of the charter contract for the FPSO PTSC Lam Son until June 30, 2026. This contract is anticipated to achieve first condensate in Q3 2027.