KUALA LUMPUR (June 11): Yinson Holdings Bhd shares rose on Monday after its joint venture consortium in Vietnam landed a US$737.3 million (RM3.35 billion) contract.
At 11.10am, Yinson gained three see to RM2.13 with 269,600 shares done.
In a filing to Bursa Malaysia on Monday, Yinson said the consortium Holdings had negotiated with Lam Son, a joint venture between Vietnam’s oil major Petro-Vietnam and Petroliam Nasional Bhd, for a floating production, storage and offloading (FPSO).
The announcement by Yinson on Monday confirmed a report by the Edge weekly in its latest edition that Yinson-PTSC managed to negotiate for a higher contract value of US$700 million – US$500 million for a seven-year bare-boat charter and a US$200 million extension for another three years. The Edge said the job was previously awarded to Norway-based Fred Olsen Production.
In a filing to Bursa Malaysia on Monday, Yinson said the tenure of the contract was a firm period of seven years, having the option to extend on an annual basis for a further period of three years.
It said the total contract value was US$737 million (RM2.35 billion) for 10 years for the firm period and US$221.19 million (RM705.49 million) for the extension period.