Vietnam's PTSC, Malaysia's Yinson win $416 mln floating storage and offloading contract from Murphy Oil

PTSC Asia Pacific, a joint venture between Vietnam's PTSC and Malaysia's Yinson, has secured a floating storage and offloading (FSO) contract for the Lac Da Vang oilfield project, operated by the United States' Murphy Oil.

In a statement released on Monday, Yinson, a leading FSO developer, announced that the contract is valued at $416 million for a 10-year term, with an option to extend for up to five years.

The joint venture will provide services to Murphy Cuu Long Bac Oil Co. Ltd., a subsidiary of Murphy Oil.

The agreement was formalized at a ceremony held in Ba Ria-Vung Tau province in southern Vietnam on Sunday. PTSC is the technical arm of the state-owned oil and gas giant Petrovietnam, while Yinson is a prominent FSO developer based in Malaysia.

The FSO contract includes provision, chartering, operation, and maintenance services for Murphy Oil. The FSO will feature a newly built double-hull vessel with a storage capacity of approximately 500,000 barrels and will feature advanced dual-fuel systems for optimized efficiency.

Following an estimated two-year construction period, the FSO is expected to begin operations in the Lac Da Vang field, located in Block 15-1/05 offshore Vietnam, in the fourth quarter of 2026.

Murphy Oil has received approval from the Vietnamese government to advance its field development plan for the Lac Da Vang oilfield in Block 15-1/05 of the Cuu Long Basin, which was approved in Q3/2023.

The Lac Da Vang oilfield is estimated to contain 100 million barrels of oil equivalent in gross resources, with peak gross production projected to reach 30,000 to 40,000 barrels of oil equivalent per day, according to Murphy Oil.

Block 15-1/05 is situated in the Cuu Long Basin on the southeast continental shelf of Vietnam, approximately 120 kilometers east of Ba Ria-Vung Tau.