Yinson initiated the construction of FSO Unit for Vietnam
Yinson Production, a subsidiary of Yinson Holdings, has initiated the construction of a floating storage and offloading (FSO) unit for the Lac Da Vang oil field in Vietnam. A steel-cutting ceremony took place on February 22, 2025, at Nantong Strongwind Shipyard in China. This project aims to enhance Vietnam’s energy security and is expected to be operational by the fourth quarter of 2026.
Key Details of the FSO Project
The FSO unit, designed for low-carbon operations, will have a capacity of 500,000 barrels. It represents a significant milestone for Vietnam’s energy sector. The ceremony was attended by various stakeholders, including representatives from PTSC Asia Pacific, Murphy Cuu Long Bac Oil Company, and the Nantong Municipal Government. These partnerships highlight the collaborative effort to ensure the project’s success.
Yinson has emphasized the integration of advanced technologies in the FSO’s design. The project will utilize platform-associated gas and optimize energy circulation, which will help reduce operational costs. The construction is being managed by OceanSTAR Elite Group, known for its innovative approaches in marine engineering.
In December 2024, a contract was awarded to PTSC Asia Pacific for the provision, charter, operation, and maintenance of the FSO. This joint venture combines the expertise of Yinson Production and PetroVietnam Technical Services Corporation (PTSC). Murphy Oil operates Block 15-1/05 of the Cuu Long Basin, holding a 40% working interest, while PetroVietnam Exploration Production and SK Earthon hold 35% and 25%, respectively.
The Lac Da Vang field is projected to recover 100 million barrels of oil equivalent (mmboe) in gross resources. It is expected to reach peak gross production of 30 to 40 mboepd, with net peak production of 10–15 mboepd. The delivery of the FSO aligns with Murphy’s timeline for first oil production, planned for 2026, with further development extending through 2029.
In a related development, Murphy Oil recently discovered oil in the Hai Su Vang field within the Cuu Long Basin. The Hai Su Vang-1X exploration well revealed approximately 112 meters of net oil pay across two reservoirs, further bolstering the region’s potential for oil production.
