Yinson Production and PetroVietnam Technical Services Corporation(PTSC), through their joint venture company PTSC South East Asia, signed a lease and operating agreement for a new floating storage and offloading(FSO) unit for the development of the Block B gas field, offshore Vietnam.
Yinson and PTSC’s FSO project
The award comes from Phu Quoc Petroleum Operating Company(PQPOC), the entity designated by the National Industry and Energy Group of Vietnam(Petrovietnam) as the official operator of Blocks B&48/95 and 52/97. These blocks are located in the southwest of the country, at depths of between 77 and 80 meters and at distances ranging between 250 and 400 kilometers from Ca Mau and the O Mon energy complex.
This project contemplates the annual supply of more than 5 billion cubic meters of gas to strategic areas in the southwest, with a direct impact on the region’s energy security and benefits for the Vietnamese government, Petrovietnam and international investors. FSO Block B will have the capacity to store up to 350,000 barrels of condensate and will operate without drydocking for 25 years.
The unit will be a double-hulled, turret-moored unit built specifically for the conditions of the environment and will be installed at a depth of 80 meters. The contract has an initial term of 14 years, with an option to extend for an additional nine years.
This contract brings Yinson’s offshore production fleet to 11 units. The company continues to strengthen its presence in Southeast Asia following other awards, such as the contract with Murphy Oil on the Lac Da Vang project and the extension of the PTSC Lam Son FPSO. In addition, the first condensate from this new project is estimated to be sourced in the third quarter of 2027.
This contract reflects our strong collaboration with PTSC and our long-term 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 improve energy security and are confident that this project will generate long-term value for all stakeholders.
Flemming Guiducci Grønnegaard, CEO of Yinson.
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Source and photo: Yinson
