Malaysia energy firm Yinson renews lease on Petrovietnam vessel for $75 mln

Malaysia’s Yinson Production will pay $74.6 million for a five-year extension on a bareboat charter contract for the PTSC Bien Dong 01, a floating storage and offloading (FSO) vessel owned by Petrovietnam’s technical arm PTSC.

In an announcement on Tuesday, Yinson Production, the offshore production unit of Malaysia-headquartered energy infrastructure and technology firm Yinson Holdings Berhad, said the extension period is from June 4, 2023 to June 3, 2028.

FSO PTSC Bien Dong 01, with an investment of $150 million and a capacity of 350,000 barrels, has been operating in Vietnam’s Blocks 05-2 and 05-3 since June 2013. The two blocks, located in the Nam Con Son Basin, cover the Hai Thach-Moc Tinh gas field, with a daily output of five million cubic meters.

Yinson Production is among the largest independent floating production storage and offloading (FPSO) leasing companies in the world, with an orderbook of more than $22 billion until 2048.

PTSC is a top-tier contractor for oil-gas and offshore projects in Vietnam. In May, it signed a contract to build offshore wind farm foundations for Orsted, becoming the first Vietnamese business to receive a mass order for offshore wind power equipment.

In January, PTSC was appointed the engineering, procurement and construction (EPC) contractor for PV Gas's Thi Vai liquefied petroleum gas (LPG) tank project. The project, invested by PV Gas, also a subsidiary of state-run Petrovietnam, features three 2,000-ton LPG tanks. It is scheduled for completion in 18 months and will improve the efficiency of LPG storage at the Thi Vai LPG terminal.

In November 2022, PTSC M&C, the mechanical and construction arm of PTSC, kicked off the construction of the offshore substations Hai Long 2 and Hai Long 3 at the 1,044-megawatt Hai Long Offshore Wind Project in the Taiwan Strait.