PTSC to make $57 million investment aboard

The joint venture is named PTSC Ca Rong Do Ltd. and carries a total investment capital of $111.62 million, 51 per cent from PVS and the remaining 49 per cent from YCL.

Under the proposed joint venture, the two companies will jointly undertake the execution and performance of the bareboat scope of work, including the bareboat charter of the floating production storage and offloading (FPSO) under the time charter contract.

Previously, in May 2017, YCL was awarded a contract from TLV for the supply, operation, and maintenance of a floating production storage and offloading (FPSO) facility for the Ca Rong Do (CRD) field development—block 07/03 offshore Vietnam. TLV is a wholly-owned subsidiary of Repsol, the operator of the CRD field.

The contract is for a fixed period of 10 years, with five yearly extension options exercisable by TLV. The estimated total aggregate value of the bareboat charter is approximately $1 billion for the entire 15-year charter, inclusive of all five yearly extension options.

As required under the contract bid, YCL entered into an agreement with TLV and PTSC for the novation of all rights and liabilities under the contract to PTSC. PTSC and YCL will subsequently form a joint venture company which will enter into a bareboat charter contract with PTSC for the bareboat scope of work under the contract.

A member of PetroVietnam, PTSC was established in February 1993 through the merger of two units, Petroleum Service Company (PSC) and Geophysics and Petroleum Service Company (GPTS).

PTSC’s main field of operation is supplying technical services to the oil and gas and industrial sector, including engineering procurement construction and installation (EPCI) for offshore facilities; implementing engineering-procurement-construction (EPC) for industrial facilities; FSO/FPSO services; offshore support vessels; seismic survey services; as well as geophysical and geotechnical survey services, among others.