On June 11, 2012 Yinson Holdings Berhad, seated in Malaysia, announced that it had entered into a MYR1.65bn ($516.11m) worth consortium agreement with Petrovietnam Technical Services Corporation (“PTSC”). The agreement relates to execution and performance of the engineering, procurement, construction and installation contract and the bareboat charter contract for the provision and charter of a floating production, storage and off-loading (FPSO) facility.

The contract duration is set for a firm period of seven years having the option to extend on an annual basis for a further period of three years.

The overall value of the contract for the ten years, extension period included, is USD 737.30 million (approximately RM2.35 billion).

PTSC, the consortium leader will onward charter to Lam Son Joint Operating Company (“LSJOC”).

“With the expansion of the Yinson group’s marine transportation services, the group will reduce its dependency on trading activities and land transport services,” Seatrade Asia cited Yinson as saying.

The predictions of the proposed joint venture are tightly connected to the dynamics of the oil and gas industry, which as written by Organization of the Petroleum Exporting Countries in its Monthly Oil Market Report for May 2012, has seen stabilization over the last period.

PTSC is principally involved in production and trade in petroleum products and equipment. It is also involved in the services related to petroleum exploration.