Yinson Production JV signs $600m FSO contract for Vietnam's Block B gas field

Malaysian energy infrastructure company Yinson Production, through its joint venture PTSC South East Asia (PTSC SEA), has signed a lease and operate contract for 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 (PQPOC), which was established by Petrovietnam to operate the field.

The total contract value is estimated to be in the region of $600 million, which includes a firm period of 14 years and potential extensions of up to nine additional years. The newbuild FSO, which will be Yinson Production's eleventh fleet unit, is expected to achieve first condensate in the third quarter of 2027, the company said.

According to Yinson, the FSO will be a double-hull, turret-moored unit installed in a water depth of 80 metres and is designed to operate for 25 years without drydocking. It will be capable of storing up to 350,000 barrels of condensate.

The Block B gas project is intended to supply gas to customers in southwest Vietnam to meet rising energy demand. PTSC SEA is a joint venture between Yinson Production, which holds a 49 per cent stake, and PetroVietnam Technical Services Corporation, which holds the remaining 51 per cent.