Malaysia’s premier integrated offshore services provider, YINSON HOLDINGS BERHAD (Yinson) is pleased to announce that Yinson Clover Limited (YCL), an indirect wholly-owned subsidiary of the Company was awarded a contract from Talisman Vietnam 07/03 B.V. (TLV) for the supply, operation and maintenance of a Floating Production Storage and Offloading (FPSO) facility for Ca Rong Do Field Development – Block 07/03 Offshore Vietnam (CRD Field) (Contract). TLV is a wholly owned subsidiary of Repsol S.A., a global integrated oil company listed on the Madrid Stock Exchange and is the operator of CRD field.
The Contract is for a firm period of ten (10) years (Firm Charter Period) with five (5) yearly extension options exercisable by TLV. The estimated total aggregate value of the bareboat charter is approximately USD1.0 billion (equivalent to approximately RM4.4 billion) for the entire fifteen year charter inclusive of all five yearly extension options.
As required under the bid for the Contract, YCL entered into a novation agreement with TLV and PetroVietnam Technical Services Corporation (PTSC) for the novation of all rights and liabilities under the Contract to PTSC. Both PTSC and YCL will subsequently form a joint venture company (JVC) to be held 51% by PTSC and 49% by YCL and upon incorporation, the JVC will enter into a bareboat charter contract with PTSC for the bareboat scope of work under the Contract.
“We are delighted that all negotiations between us and TLV 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 TLV and meeting our obligations under the bareboat charter contract. This event marks a new milestone for us by adding another strong contract to the Group’s order book. Based on Yinson’s current track record, we will ensure a successful execution of the bareboat scope of work under the Contract and expects a positive contribution to the Group’s bottom-line starting from the financial year ended 31 January 2020,” said Mr. Lim Han Weng, the Group Executive Chairman of Yinson.
The signing ceremony was also held in conjunction with the signing of 3 other contracts between Repsol Group, the parent company of TLV and other parties which are involved in the CRD Field project, namely (i) a gas sales and purchase agreement; (ii) a tie-in and services agreement; and (iii) a contract for the provision of one tension leg wellhead platform facility under the CRD Field project.
