Yinson Production has secured a $131.5 million senior secured bank financing facility together with joint venture partner PTSC for a floating storage offloading (FSO) vessel being built for the Block B gas project offshore Vietnam.
The company said the facility, structured and arranged in-house, will partly finance construction of the FSO, which is currently under construction in China for Phu Quoc Petroleum Operating Company (PQPOC).
Yinson said the financing has a maturity of 12 years post-delivery, aligned with the project tenor.
The FSO is expected to begin operations by the third quarter of 2027 and will support the Block B gas field offshore Vietnam.
The vessel is designed for 25 years of operation without drydocking and will have storage capacity of up to 350,000 barrels of condensate.
Yinson Production said its joint venture PTSC South East Asia secured the lease-and-operate contract for the FSO in July 2025 from PQPOC, operator of Blocks B 48/95 and 52/97 on behalf of PetroVietnam.
PTSC SEA is jointly owned by Yinson Production (49%) and PetroVietnam Technical Services Corporation (51%).
“We continue to see significant benefits in the lease-and-operate model for our clients: reducing upfront capital requirements while delivering compelling overall economics. This transaction further demonstrates our ability to deliver tailored, long-term financing solutions for lease-and-operate projects, underpinned by our deep and diversified access to capital.
“We thank Mizuho and UOB for their support and partnership in this financing,” Yinson Production said.
The Block B gas project, located in the southwest offshore region of Vietnam, aims to supply over 5 billion cubic metres of gas per year to major power complexes in Ca Mau and O Mon provinces. It plays a strategic role in meeting the country’s growing energy demand.