FPSO gets at least 18 more months of work offshore Asia

A floating production, storage, and offloading (FPSO) vessel, which is working off the coast of Vietnam, has secured further work in the Cuu Long Basin in Southeast Asia, where it has been operating for a decade.

The 18-month contract extension will enable the FPSO PTSC Lam Son to keep working for PetroVietnam in Block 1-2/97 offshore Vietnam. The unit has been on this assignment at the Thang Long – Dong Do fields in the Cuu Long Basin since its conversion in 2014.

The FPSO PTSC Lam Son’s extension will begin in continuation of the existing bareboat charter, starting from January 1, 2025, to June 30, 2026, with an automatic extension for an additional six months until December 31, 2026, subject to certain conditions. The previous extension was secured in June 2023.

This unit is owned by PTSC Asia Pacific, a joint venture (JV) consisting of PetroVietnam Technical Services Corporation (PTSC), holding a 51% interest, and Malaysia’s Yinson Production, a subsidiary of Kuala Lumpur-based energy infrastructure and technology company Yinson Holdings, which has the remaining 49% stake.

Flemming Grønnegaard, Yinson Production’s Chief Executive Officer, commented: “The contract extension underscores the strong partnership we have built with PTSC as our joint venture partner and our combined ability to deliver reliable, high-quality operations to the client. Together with PTSC, we remain committed to driving value creation and operational excellence throughout the lifecycle of this asset.”

According to Yinson Production, the value of the extension of the bareboat charter contract, including the extension period, is approximately $36.2 million, of which about $17.7 million is attributable to the Malaysian firm.

, andThe FPSO PTSC Lam Son is capable of producing 15,000-20,000 barrels of oil per day (bopd) and has a storage capacity of up to 650,000 barrels of oil. Yinson Production’s fleet contains ten units, and the firm has an orderbook of approximately $22 billion until 2048.

A few weeks ago, the Malaysian player and PTSC were tasked by Murphy Oil with the provision, charter, operation, and maintenance of a floating storage and offloading (FSO), expected to be deployed at an oilfield development project in Vietnam.