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

Yinson Production, in partnership with PTSC South East Asia (PTSC SEA), has been awarded a lease and operate contract for a new floating storage and offloading (FSO) unit for Vietnam’s offshore Block B gas development. The contract was secured from Phu Quoc Petroleum Operating Company (PQPOC), the operator of Blocks B 48/95 and 52/97, on behalf of state-run Petrovietnam. This project signifies a significant milestone in Vietnam’s efforts to bolster energy security and enhance offshore infrastructure.

The contract entails a firm term of 14 years, with the option to extend for up to nine additional years, bringing the total estimated contract value to $600 million. The FSO unit will be a turret-moored, double-hull newbuild designed for continuous service over 25 years without the need for drydocking. With a storage capacity of up to 350,000 barrels of condensate, the FSO is set to operate in 80 meters of water, with first condensate production expected in the third quarter of 2027.

Partnership and Commitment

CEO of Yinson Production, Flemming Grønnegaard, expressed the company’s dedication to Vietnam’s offshore energy sector through its strong partnership with PTSC. Grønnegaard stated, “The Block B FSO highlights our ability to deliver tailored, high-quality offshore assets and support Vietnam’s energy ambitions.” PTSC SEA, jointly owned by Yinson Production (49%) and PetroVietnam Technical Services Corporation (51%), plays a pivotal role in the project.

Strategic Importance

Situated in the southwest offshore region of Vietnam, the Block B gas project aims to supply over 5 billion cubic metres of gas annually to major power complexes in Ca Mau and O Mon provinces. This project is strategically vital in meeting the country’s escalating energy demands and ensuring energy security.

Continued Success

This latest contract win adds to the recent achievements of the Yinson-PTSC partnership, which includes an FSO charter for Murphy Oil’s Lac Da Vang project and an 18-month extension for the FPSO PTSC Lam Son. Grønnegaard reiterated the company’s commitment to Vietnam’s offshore energy sector and expressed confidence in delivering long-term value for all stakeholders.

With a successful track record in the region, Yinson Production continues to demonstrate its capability in providing high-quality offshore assets that meet the specific needs of clients and contribute to the advancement of Vietnam’s energy sector.