Yinson clinches RM4.4b FPSO contract in Vietnam

KUALA LUMPUR: Integrated offshore services provider Yinson Holdings Bhd’s indirect wholly owned subsidiary Yinson Clover Ltd (YCL) was awarded a US$1 billion (RM4.4 billion) contract from Talisman Vietnam 07/03 BV (TLV) for the supply, operation and maintenance of a floating, production, storage and offloading (FPSO) facility for Ca Rong Do Field Development – Block 07/03 Offshore Vietnam (CRD field).

TLV is a wholly owned subsidiary of Repsol SA, a global integrated oil company listed on the Madrid Stock Exchange and is the operator of CRD field.

The contract is for a firm period of 10 years with five yearly extension options exercisable by TLV.

As required under the bid for the contract, YCL entered into a novation agreement with TLV and PetroVietnam Technical Services Corp (PTSC) for the novation of all rights and liabilities under the contract to PTSC.

Both PTSC and YCL will subsequently form a joint venture company (JVC) to be held 51% by PTSC and 49% by YCL and upon incorporation, the JVC will enter into a bareboat charter contract with PTSC for the bareboat scope of work under the contract.

Yinson group executive chairman Lim Han Weng said this marks a new milestone for the group by adding another strong contract to the group’s order book.

“Based on Yinson’s current track record, we will ensure a successful execution of the bareboat scope of work under the contract and expects a positive contribution to the group’s bottom-line starting from the financial year ended Jan 31, 2020,” said Lim in a statement.