Yinson in talks for Talisman job
It has received letter of intent to supply FPSO vessel in Vietnam
PETALING JAYA: Yinson Holdings Bhd has entered into exclusive negotiations with Talisman Energy Inc for the supply of a floating production, storage and offloading (FPSO) facility for the latter’s development field in eastern offshore Vietnam.
In a filing with Bursa Malaysia, Yinson disclosed that its subsidiary Yinson Production Pte Ltd (YPPL) had received a letter of intent (LoI) on Jan 20 from Talisman Vietnam 07/03 BV (TLV) to supply the FPSO vessel for the Ca Rong Do (CRD) Field.
TLV is a wholly owned subsidiary of Spain-listed Repsol SA, a global integrated oil company and the operator of the field.
“The LoI is a confirmation of TLV’s intention to award the contract to YPPL, subject to, among others, the successful negotiation and finalisation of the terms and conditions of the contract, the commercial arrangement, as well as approvals from the relevant authorities, which is expected to be completed by April 2017. A further announcement will be made upon the execution of the contract,” it said.
The other owners of the CRD Field are PetroVietnam, PetroVietnam Exploration Production Corp, Mudabala Petroleum and Pan Pacific Petroleum.
The contract represents a significant coup for Yinson and a blow to Bumi Armada Bhd. Both companies have been tendering for FPSO jobs around the world in a segment which has been impacted by an oversupply of available vessels.
Yinson and Bumi Armada are the sixth and fifth-largest FPSO firms globally based on the number of floaters on contract.
According to a recent report by an oil and gas publication, Yinson and Bumi Armada were the only two bidders for the US$1.1bil CRD Field project.
Both groups were said to have offered FPSO vessels that were capable of storing 950,000 barrels of oil.
According to multiple reports, Repsol requires a floater with a processing capacity of between 25,000 and 30,000 barrels per day plus 60 million cu ft of gas per day (MMcfd).
The FPSO must also be capable of exporting at a maximum rate of 130 MMcfd to facilitate the development of other potential sites. Additionally, the storage requirement is about 500,000 barrels of oil, while the vessel is to be moored by a fixed internal or external turret system.
Yinson shares closed at RM3.02 yesterday following the announcement, representing a three-sen increase from Friday’s close. The stock had hit an all-time high of RM3.14 on Sept 14 last year.