Malaysia Vietnam Offshore Terminal (MVOT) has bagged a time charter contract of around $176m from Idemitsu Kosan (IKC) to supply a floating, storage and offloading vessel (FSO) for the Sao Vang and Dai Nguyet Development Project (SVDN project) offshore Vietnam.


Image: MVOT secures FSO contract for SVDN project in Vietnam. Photo: courtesy of rawpixel/

Under the contract, MVOT will handle the engineering, procurement, construction, installation, commissioning, lease and operations of the FSO for the SVDN project. The vessel will be leased for seven years with the contract and the charter is likely to come into effect by mid-2020.

MVOT is a joint venture formed between Malaysian shipping firm MISC and PetroVietnam Technical Services (PTSC), which own stakes of 51% and 49%, respectively.

MISC president / group CEO 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.”

The contract was won through an international competitive bidding process and represents the first venture for MISC with IKC.

The SVDN project is located in Blocks 05-1b and 05-1c in the Nam Con Son basin, nearly 300km south-east of Ho Chi Minh City. The owners of the project are IKC, Teikoku Oil (Con Son) and PetroVietnam, reported Reuters.

IKC is the operator of the SVDN project, which is expected to produce its first gas in the second half of 2019.

In March 2018, the first cutting ceremony for the project was held at PTSC Mechanical & Construction (PTSC M&C) Fabrication Yard in Vungtau City, Vietnam. PTSC M&C holds the engineering, procurement, construction, installation, commissioning (EPCIC) contract of the project.

In July 2016, Aker Solutions won a contract to provide engineering services for the development of oil and gas resources associated with the SVDN project. The nine-month contract for Aker Solutions covered the front end engineering design (FEED) work for the Sao Vang and Dai Nguyet developments.

Earlier this year, McDermott International was given a transportation and installation subcontract by PTSC Offshore Service Joint Stock Company for the offshore gas project.