The Malaysian Yinson Holdings enters in consortium agreement with PetroVietnam Technical Services Corporation (PTSC) for establishment of joint-venture company, which will undertake the execution and performance of the bareboat scope of work, including bareboat charter of FPSO. Under the agreement, PTSC will hold 51% in the new company, while Yinson Holdings will hold the remaining 49% through its subsidiary Yinson Clover. All decisions and commitments pertaining to the charter contract, such as prices, contractual terms, conditions, schedules and etc will be jointly agreed by the both parties in the joint-venture. The project cost is estimated to 648 million USD.
“It is envisaged that up to US$111 million of the estimated project costs shall be contributed by the parties in the form of shareholders’ loan and/or equity participation in accordance with their proportionate share in the JVC”, said the official statement of Yinson Holdings. “The remaining balance of the estimated project cost shall be funded by financing from financial institutions by the JVC”, adds the statement.
At the end of April, Yinson Holdings was awarded a 10-year FPSO charter contract by Talisman. The proposed joint venture will enable the company to leverage on its established working relationship with PTSC, and strengthen its presence in the Vietnamese oil and gas industry.