Sources say Yinson together with its Vietnam partner PetroVietnam Technical Services Corp are tipped to be the front runners for a US$500 million job from Lam Son – a joint entity of Vietnam ’s oil major Petro Vietnam Petronas. The job, which is to supply Lam Son a FPSO vessel with a 10 year charter contract had before attracted bids from Ramunia Bhd and Fred Olsen Production, which emerged as the winner. However, after being issued with the letter of intent four months ago, Fred Olsen said to be facing financing issues resulting in its exit.
The Lam Son contract, if successful, will be the second major league job for Yinson, a budding oil and gas outfit with a market cap of rm400 million only. The company together with PTSC, a unit of PetroVietnam, won a rm1.01 billion contract from Vietnam ’s oil major in Dec 2011 to supply FSO vessel with a 20 year charter contract.
Prior to securing the FSO contract jointly with PTSC, the company on its own managed to bag a smaller rm88 million PSV charter contract in May 2010, and another rm75 million AHTS charter contract in June 2011, all from the Vietnam’s oil major. The PSV and AHTS which are on seven years’ charter, are still ongoing.
Yinson has just completed some fundraising activities and management has hinted that it is prepared to take on more major jobs, and another FSO or FPSO is highly likely given its close relationship with PTSC and hence PetroVietnam.
The Lam Son job is likely to be undertaken via a joint venture in which PTSC will own 51% and Yinson 49%, which is the same as in the partnership’s arrangement for the rm1.01 billion FSO job secured in Dec 2011.
To finance the FSO job, the joint venture between PTSC and Yinson has taken up 80% funding, equivalent to US$105 million, with the balance via equity financing. It is expected that Lam Son job is to have a similar financing arrangement.
The Lam Son contract, if successful, will be the second major league job for Yinson, a budding oil and gas outfit with a market cap of rm400 million only. The company together with PTSC, a unit of PetroVietnam, won a rm1.01 billion contract from Vietnam ’s oil major in Dec 2011 to supply FSO vessel with a 20 year charter contract.
Prior to securing the FSO contract jointly with PTSC, the company on its own managed to bag a smaller rm88 million PSV charter contract in May 2010, and another rm75 million AHTS charter contract in June 2011, all from the Vietnam’s oil major. The PSV and AHTS which are on seven years’ charter, are still ongoing.
Yinson has just completed some fundraising activities and management has hinted that it is prepared to take on more major jobs, and another FSO or FPSO is highly likely given its close relationship with PTSC and hence PetroVietnam.
The Lam Son job is likely to be undertaken via a joint venture in which PTSC will own 51% and Yinson 49%, which is the same as in the partnership’s arrangement for the rm1.01 billion FSO job secured in Dec 2011.
To finance the FSO job, the joint venture between PTSC and Yinson has taken up 80% funding, equivalent to US$105 million, with the balance via equity financing. It is expected that Lam Son job is to have a similar financing arrangement.
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