PTSC and Malaysia MISC Join for FPSO Deal

PTSC acquires 60% stake in a joint venture company, which owns the FPSO operating in Ruby field located on Blocks 01/02 offshore Vietnam. The FPSO is moored fixedly at Ruby fields to receive, process and store crude oil from WHPs (wellhead platforms). The product then will be periodically off-loaded to trading tankers for export. The converted FPSO, with 15 years life design without dry-docking, has a daily production capacity of 45,000 barrels of oil and storage capacity of 600,000 barrels. The amount of approx. USD 275 million shall be invested in the project. The trading M/T Cherry II was selected as donor vessel for the conversion.

As the leading company in the oil and gas technical services in Vietnam, Petroleum Technical Services Corporation (PTSC), a subsidiary of PetroVietnam, has joined in consortium with Malaysian partners MISC Berhad (a subsidiary of Petronas) to leave behind it a number of well-known bidder and get award of the Time Charter Contract to supply FPSO for PCVL with official Letter of Award issued on 10th September 2007. The firm charter period is 8 years with the option to extend yearly up to 10 years. To run and manage the Contract efficiently, a joint venture company will be established with PTSC holding 60% stake and the remaining belongs to MISC. This joint venture will be the legal entity to sign the Contract with PCVL. MISC is responsible for the engineering, procurement, life extension and conversion of the FPSO including the purchase of M/T Cherry II while PTSC being responsible for the offshore installation of the asset. The operation and maintenance of the FPSO shall be fully performed by PTSC during the charter period, hence creating stable and attractive job opportunities for Vietnamese labors. The purchase of M/T Cherry II has concluded and as scheduled, the conversion will be completed within 18 months from Contract award.

The award of the Contract and participation in this joint venture as majority owner as well as operating the asset fully by itself has marked important and great forward leaps of PTSC’s capacity and competency development, paving the potential way and ensuring PTSC’s stable development in the initial steps of international integration under the environment of global competition.