Saturday, October 13, 2007

Vietnam JV to spend nearly $300 million on floating oil facility

Petroleum Technical Services Corp (PTSC) and Malaysian's MISC have won a contract worth about US$350-400 million in Vietnam,

The consortium of MISC and PTSC was awarded the contract by PC Vietnam Ltd to provide a floating production storage and offloading facility, the company said in a stock exchange filing.

MISC said the duration of the job was over a period of 8 years.

The estimated capital expenditure for the facility is approximately $260-290 million, it said.tq

PC Vietnam Ltd. is the operator of a production sharing contract for Blocks 01 and 02 located offshore Vietnam 155 kilometers (96 miles) east of Vung Tau.

Malaysia state oil company Petronas owns 62 percent of MISC.

The Star Online website (biz.thestar.com.my) quoted OSK Investment Bank analyst Chris Eng as saying that the contract signaled MISC’s foray into the Vietnamese market, which would see strong development over the next few years.