Malaysia Vietnam Offshore Terminal (MVOT) confirmed that it has been awarded a $176 million contract to provide equipment for Japanese petroleum company Idemitsu Kosan to develop a gas block off southern Vietnam.

The Malaysian terminal operator, a joint venture between PetroVietnam Technical Services Corp and Malaysia’s MIBS Bhd, said in a press release that the time charter contract is to to supply a floating, storage and offloading vessel (FSO) for the Sao Vang and Dai Nguyet Development Project (SVDN project) offshore Vietnam.

 The contract represents the expansion of MISC’s footprint as a leading player in providing offshore solutions in the ASEAN region.

MISC has close to 10 years of experience in Vietnam’s offshore development in a joint venture partnership with PTSC and currently operates two floating assets, namely the FSO Orkid and a Floating Production, Storage and Offloading (FPSO) facility, FPSO Ruby II.

The contract was secured through an international competitive bidding process and marks MISC’s first venture with IKC.

Under this contract, which is valued at approximately USD176 million, MVOT will be responsible for the engineering, procurement, construction, installation, commissioning, lease and operations of the FSO. Upon its conversion, the FSO will be deployed for the Sao Vang and Dai Nguyet Development Project in Blocks 05-1b and 05-1c, offshore Vietnam and it will be leased for a duration of seven years.

The contract and the charter is expected to commence by mid-2020.

MISC’s President / Group Chief Executive Officer, Mr. Yee Yang Chien said “We are honoured for the trust and opportunity given for us to work together with IKC in the development of Vietnam’s oil & gas industry. With our broad spectrum of energy related maritime solutions and services, be it in energy shipping or offshore solutions, MISC is confident of our ability to serve the various needs of the global oil and gas industry.”

PTSC, a company incorporated in Vietnam, is a member of Vietnam Oil and Gas Group and is primarily involved in the supply of technical services to the oil & gas industry in Vietnam.

IKC, a company incorporated in Japan, is engaged in petroleum refining and manufacture and sale of oil products, manufacture and sale of petrochemical products, and the exploration, development and extraction of petroleum, coal and geothermal resources.