Singapore’s Yinson Production, a subsidiary of Kuala Lumpur-based infrastructure and energy technology company Yinson, and its joint venture partner, PTSC, have secured multi-million dollar financing for the partial construction of a new floating storage and offloading (FSO) unit, scheduled to be deployed in the Block B gas field offshore Vietnam, Southeast Asia.
The joint venture partners have secured US$131.5 million in secured bank financing for the FSO committed to operating in Block B Marine project in Vietnam. With a maturity period of 12 years post-handover, in line with the base project duration, this financing facility, which has been structured and arranged internally, will partly finance the construction of the FSO.
Yinson production confirmed: “We continue to see significant benefits in the leasing and operating model for our clients: reducing upfront capital requirements while delivering compelling overall economics.
“This transaction also demonstrates our ability to provide tailored, long-term financing solutions for leasing and operating projects, supported by our deep and diversified access to capital. We thank Mizuho and UOB for their support and partnership on this financing.”
The FSO is currently being built in China for PetroVietnam Phu Quoc Petroleum Operating Company (PQPOC)the next the First cut steel in December 2025. Construction is expected to be completed in 2027, so the ship can be deployed to Terminal B on a 14-year fixed charter with up to nine years of extension options.
The Singapore-based giant, which owns the vessels with PTSC, previously explained that the double-hulled, tower-mounted FSO, which is designed to be stationed for 25 years without a dry dock, will be able to store up to 350,000 barrels of condensate. This unit will be installed in water depths of up to 80 metres.
Blocks B&48/95 and 52/97, where the Vietnam Gas Project B is located, are located in southwest Vietnam at a water depth of 77-80 metres, approximately 250 km and 400 km, respectively, to Ca Mau Province and the O Mon Energy Park.
like Marcus WinkerWhat stands out when it comes to this financing is the rather long duration of over 13 years door to door, including 12 years post-handover, on the back of shortened maturities due to Basel regulations, highlights the CFO of Yinson Production.
Winker also points out that the FSO is the second of two Yinson Production sister ships currently under construction in China, bound for Vietnam. The other unit is being Built for Murphy Oil and expected to be completed this year, it is being financed separately and also owned by the Singapore-headquartered company’s joint venture with PTSC.
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