Yinson Production, in partnership with PetroVietnam Technical Services (PTSC), has won a contract to provide a floating storage and offloading (FSO) vessel for the Lac Da Vang project offshore Vietnam.
The contract was awarded by Murphy Cuu Long Bac Oil, a wholly owned subsidiary of US-based Murphy Oil.
It was awarded to PTSC Asia Pacific (PTSC AP), a joint venture where PTSC holds a 51% stake, and Yinson Production owns the remaining 49%.
The contract has an initial duration of 10 years, with an option to extend for up to five additional years, bringing its potential total value to approximately $416m. It includes the supply, charter, operation, and maintenance of the FSO vessel.
The vessel will be constructed as a newbuild with a double-hull design and a storage capacity of 500,000 barrels. It will feature dual-fuel systems aimed at optimising operational efficiency.
The construction phase is expected to span two years. Operations are set to commence in Q4 2026 at the Lac Da Vang field, located in Block 15-1/05 off Vietnam’s southeastern coast.
This project marks a continuation of the longstanding collaboration between Yinson Production and PTSC. Their projects include the FSO PTSC Bien Dong 01, which has been operational since 2013, and the FPSO PTSC Lam Son, which began operations in 2014.
Yinson Production CEO Flemming Grønnegaard said, “This new project underscores Yinson Production’s commitment to delivering energy solutions that meet the evolving needs of our clients and the industry. The Lac Da Vang FSO project is a testimony to the strength of our partnership with PTSC and our shared vision for operational excellence.”
The Lac Da Vang field, located in the Cuu Long Basin, lies approximately 120km east of Vung Tau City in shallow waters. Discovered in 2010, the field has recoverable reserves estimated at 100 million barrels of oil equivalent, with projected peak production of 30,000 to 40,000 barrels of oil equivalent per day.
Operated by Murphy Cuu Long Bac Oil, the project involves partners PetroVietnam Exploration Production Corporation (35%) and SK Earthon (25%).
A central processing platform, LDV-A, is under construction to process crude oil for export, which will then be stored in the FSO vessel before offloading.
