PetroVietnam Technical Services Corporation (PTSC) has won a contract to supply a floating storage and offloading (FSO) system to a project being developed in the Sao Vang-Dai Nguyet gas fields by Japanese firm Idemisu Kosan.
The Malaysia-Vietnam Offshore Terminal Ltd (MVOT) is a joint venture between PetroVietnam Technical Services Corp and Malaysia’s MIBS Bhd. It has won a US$176 million contract to provide equipment for Idemitsu Kosan to develop the Sao Vang-Dai Nguyet gas project.
PTSC was picked as a sub-contractor to provide equipment for the projects.
The FSO supply and rental contract will last seven years with a total value of $176 million.
PTSC said the FSO would be completed and ready to receive the first condensate flows in July 2020.
After being transformed from a tanker, the FSO has a capacity to store 700,000 barrels of condensate, double Idemitsu Kosan’s minimum storage requirement of 350,000 barrels.
The FSO is designed to house 55 technical and operational personnel and a helicopter pad with the latest UK CAP 437 standard, capable of receiving Airbus H-225 or equivalent.
The contract could be extended for another eight years.
PTSC has sent a team of experts to Malaysia to carry out all stages of design, procurement, manufacturing, installation and commission.
At the operational stage, PTSC expects to be responsible for 100 per cent of the workload.
PTSC General Director Le Manh Cuong said along with the FSO, his company would also be part of the entire development project of the Sao Vang-Dai Nguyet fields.
The Sao Vang-Dai Nguyet gas fields are located in Blocks 05-1b and 05-1c, about 350km southeast of Viet Nam’s coast. Idemitsu Kosan is the operator of the offshore development with an ownership of 43.08 per cent.
Estimated output of the gas fields is about 1.5 billion cubic metres of gas per year and 2.8 million barrels of crude oil and condensate.
Late in August this year, PetroVietnam signed a gas sale-purchase agreement with the developers of the field. — VNS