Yinson Production, via its joint venture PTSC South East Asia (PTSC SEA), has secured 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 awarded by Phu Quoc Petroleum Operating Company (PQPOC), the operator of Blocks B 48/95 and 52/97, on behalf of state-run Petrovietnam. The project marks a key milestone in Vietnam’s push to enhance energy security and offshore infrastructure.
The contract includes a firm term of 14 years, with an option to extend for up to nine additional years. The total contract value, including extensions, is estimated at $600 million.
The FSO will be a turret-moored, double-hull newbuild unit designed for continuous service for 25 years without drydocking. It will operate in 80 meters of water and have a storage capacity of up to 350,000 barrels of condensate. First condensate production is expected in the third quarter of 2027.
“This contract reflects our strong partnership with PTSC and our long-standing commitment to Vietnam’s offshore energy sector,” said Flemming Grønnegaard, CEO of Yinson Production. “The Block B FSO highlights our ability to deliver tailored, high-quality offshore assets and support Vietnam’s energy ambitions.”
PTSC SEA is jointly owned by Yinson Production (49%) and PetroVietnam Technical Services Corporation (51%).
The Block B gas project, located in the southwest offshore region of Vietnam, aims to supply over 5 billion cubic metres of gas per year to major power complexes in Ca Mau and O Mon provinces. It plays a strategic role in meeting the country’s growing energy demand.
The award follows recent contract wins by the Yinson-PTSC partnership, including an FSO charter for Murphy Oil’s Lac Da Vang project and an 18-month extension for the FPSO PTSC Lam Son.
“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,” said, Flemming Guiducci Grønnegaard, CEO of Yinson.
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