Yinson settles cancelled $1B FPSO deal for Ca Rong Do field off Vietnam

Malaysian FPSO provider Yinson has executed a final settlement with PetroVietnam regarding last year’s termination of the $1 billion FPSO charter contract.

The PTSC CRD joint venture, consisting of Yinson Clover and PetroVietnam Technical Services Corporation (PTSC), in 2017 signed the $1 billion bareboat charter contract for the supply of the FPSO for ten years firm and five more in extensions.

The contract was meant for the supply of an FPSO for the Ca Rong Do field development offshore Vietnam.

In March 2018, Repsol’s subsidiary Talisman Vietnam, the operator of the Ca Rong Do field, informed PTSC of a force majeure event directing the oil company “not to carry out the scheduled work program on the CRD Project for the time being”.

The future of the FPSO charter was unknown at the time but in September 2019 PTSC terminated the charter due to a prolonged force majeure event.

Then on Thursday, 2 June 2020, Yinson said that it reached a final settlement with PTSC. The settlement agreement will settle all rights, demands, liabilities and obligations arising from the termination of the bareboat charter contract.

It is worth noting that PTSC also on the same date entered into a final settlement agreement with Talisman Vietnam.

To remind, BBC reported back in 2018 that PetroVietnam ordered Repsol and its Talisman Vietnam subsidiary, to suspend its Ca Rong Do work, to avoid confrontation with China due to the maritime border issue in the South China Sea.