Singapore-based floater owner and operator Yinson Production has signed a contract for the provision of a newbuild floating storage and offloading (FSO) unit to serve the Block B gas field, offshore Vietnam.
The contract was awarded by Phu Quoc Petroleum Operating Company to Yinson Production’s joint venture company, PTSC South East Asia. This new FSO brings the Singapore firm’s fleet size to 11.
PQPOC is the operator of Blocks B&48/95 and 52/97, located off the southwest coast of Vietnam in a water depth of 77-80 m. The project development is set to supply around 5bn standard cu m per year of gas to customers in three areas of the southwest region of Vietnam.
The FSO contract is estimated to have a firm period duration of 14 years, with the option for a potential extension of up to nine additional years. The total contract value, including the possible extension period, is estimated to be in the region of $600m. Yinson Production will lease and operate the unit.
The FSO will be a newbuild, double-hull, turret-moored unit. It is designed to be stationed for 25 years without drydocking and can store up to 350,000 barrels of condensate. This contract is anticipated to achieve first condensate in the third quarter of 2027.
PTSC South East Asia is a joint venture between Yinson Production which holds 49%, and PetroVietnam Technical Services Corporation which holds the remaining 51%.
The JV already has one FSO operating in Vietnam, and that is the FSO PTSC Bien Dong 01 (pictured). Another is on order for Murphy Oil and is set to become operational in 2026 and stay in the country until at least 2037.
