Yinson Production, through its joint venture PTSC South East Asia (PTSC SEA), has signed a long-term contract to lease and operate a Floating Storage and Offloading unit (FSO) for the Block B gas project offshore Vietnam.
The contract was awarded by Phu Quoc Petroleum Operating Company (PQPOC) — operator of blocks B 48/95 and 52/97 — on behalf of state-owned Petrovietnam. The project marks a significant milestone in Vietnam’s efforts to enhance its energy security and offshore infrastructure.
📅 Contract duration: 14 years, with an option to extend for an additional 9 years.
💰 Total value: up to $600 million, including extension periods.
The FSO will be a newbuild double-hull vessel equipped with a turret mooring system, designed for 25 years of uninterrupted service without dry-docking. It will operate at a water depth of 80 meters and have a storage capacity of up to 350,000 barrels of condensate. Production is scheduled to start in Q3 2027.
“This contract reflects our strong partnership with PTSC and our long-standing commitment to developing Vietnam’s offshore energy sector,” said Flemming Guiducci Gronnegaard, CEO of Yinson Production.
“The Block B FSO project demonstrates our ability to deliver tailored, high-quality offshore assets that support Vietnam’s energy ambitions.”
PTSC SEA is jointly owned by Yinson Production (49%) and PetroVietnam Technical Services Corporation (PTSC, 51%).
📍 Located off southwestern Vietnam, the Block B gas development is expected to supply over 5 billion cubic meters of gas annually to major energy complexes in Ca Mau and O Mon provinces. The project plays a strategic role in meeting the country’s rising energy demand.
This award follows other recent successes by the Yinson–PTSC partnership, including the FSO charter for Murphy Oil’s Lac Da Vang project and an 18-month extension of the FPSO PTSC Lam Son.
