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 176 million contract to provide equipment for Idemitsu Kosan to develop the Sao Vang-Dai Nguyet gas project.

The PTSC was picked as a sub-contractor to provide equipment for the projects. 

The contract of FSO supply and rental contract will last seven years with a total value of US$176 million. 

The PTSC said that the FSO will 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 can be extended for another eight years.

Joining the project of FSO conversion, the PTSC has sent a team of experts to Malaysia to carry out all stages of design, procurement, manufacture, installation and commission. 

At the operational stage, the PTSC expects to represent the MVOT to be responsible for 100 percent of the workload. 

PTSC General Director Le Manh Cuong said along with the FSO, his company will also participate in the entire development project of 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 Vietnam’s coast. Idemitsu Kosan is the operator of the offshore development with an ownership of 43.08%.

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 per year.

Late in August this year, PetroVietnam signed a gas sale-purchase agreement with the developers of the field.