Yinson wins 10-year RM4.4bil contract from Talisman Vietnam

"Group executive chairman and managing director Lim Han Weng said there were only six credible and reputable providers in the world including the company for the O&G-related services.

PETALING JAYA: Oil and gas services provider Yinson Holdings Bhd has been awarded a RM4.4bil Floating Production Storage and Offloading (FPSO) contract from Talisman Vietnam BV.

The 10-year contract is for the supply, operation and maintenance of a FPSO for Ca Rong Do field developmentoffshore Vietnam, with five yearly extensions options exercisable by Talisman Vietnam.

The estimated total aggregate value of the bareboat charter is US$1bil (RM4.4bil) for the entire 15-year charter, inclusive of five-yearly extension options.

Talisman Vietnam is a wholly-owned subsidiary of global integrated oil company Repsol S.A, which is listed on the Madrid stock exchange, and the operator of the Ca Rong Do field.

“We are delighted that all negotiations between us and Talisman Vietnam in relation to the contract have come to a close with the finalisation of the contractual terms.

“We look forward to deliver our best to Talisman Vietnam and meeting our obligations under the bareboat charter contract.

“This event marks a new milestone for us by adding another strong contract to Yinson’s order book.

“Based on Yinson’s track record, we will ensure a successful execution of the bareboat scope of work under the contract,” said Yinson group executive chairman Lim Han Weng.

The contract is expected to contribute positively to Yinson’s bottom line, beginning financial year ending Jan 31, 2020.

As required under the bid for the contract, the group’s indirect wholly-owned subsidiary Yinson Clover Ltd entered into a novation agreement with Talisman Vietnam and PetroVietnam Technical Services Corp (PTSC) for the novation of all rights and liabilities under the contract to PTSC.