Yinson Productions and joint venture partner PTSC have secured $131.5 million in senior secured bank financing for a floating storage offloading vessel being built for the Block B project offshore Vietnam.
The FSO is under construction in China and is scheduled for completion in 2027. After delivery, the vessel will operate at Block B under a 14-year firm charter awarded by Phu Quoc Petroleum Operating Company, with extension options of up to nine years.
The financing package was structured and arranged internally and will partly fund the construction of the vessel. The facility has a 12-year maturity after delivery, aligned with the duration of the offshore project.
According to Yinson Productions, the financing is notable for its overall tenor of more than 13 years, including 12 years post-delivery, at a time when offshore and shipping finance markets are generally offering shorter maturities linked to Basel regulatory requirements.
The vessel is the second of two sister FSOs currently under construction in China by Yinson Productions for deployment in Vietnam. The first unit is being built for Murphy Oil and is expected to be completed later this year. Both vessels are separately financed and jointly owned with PTSC.
The double-hull, turret-moored FSO is designed to operate offshore for up to 25 years without drydocking. The unit will have storage capacity of up to 350,000 barrels of condensate.
Vietnam’s Block B gas project is located offshore southwest Vietnam in water depths ranging from 77 m to 80 m, approximately 250 km from Ca Mau province.
