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Yinson awarded Vietnam FPSO contract

Written by  OE Staff Thursday, 27 April 2017 13:36

Yinson Clover Ltd. (YCL), an indirect wholly-owned subsidiary of Malaysian offshore services provider Yinson Holdings, was awarded a contract from Talisman Vietnam 07/03 BV (TLV) for the supply, operation and maintenance of a floating production storage and offloading (FPSO) facility for the Ca Rong Do (CRD) field development – block 07/03 offshore Vietnam. TLV is a wholly owned subsidiary of Repsol, the operator of the CRD field.

The contract is for a firm period of 10 years with five yearly extension options exercisable by TLV. The estimated total aggregate value of the bareboat charter is approximately US$1 billion (RM4.4 billion) for the entire 15-year charter inclusive of all five yearly extension options.  

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

“We are delighted that all negotiations between us and TLV in relation to the contract have come to a close with the finalization of the contractual terms,” said Lim Han Weng, group executive chairman, Yinson. 

The signing ceremony was also held in conjunction with the signing of the other contracts between Repsol Group, the parent company of TLV and other parties which are involved in the CRD field project, namely a gas sales and purchase agreement; a tie-in and services agreement; and a contract for the provision of one tension leg wellhead platform facility under the CRD field project.

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