Yinson Holdings has secured a $1bn contract from Spanish operator Repsol to supply and maintain a floating production storage and offloading (FPSO) facility for the Ca Rong Do oil and gas field located in Block 07/03, offshore Vietnam.

Yinson said its indirect wholly-owned unit Yinson Clover has signed a contract with Repsol’s Talisman Vietnam 07/03 BV (TLV) for the project. This follows the receipt of a letter of intent from TLV in January this year.

The contract is for a firm period of ten years. It comes with five yearly extension options exercisable by the field operator.

As per the requirements under the bid contract, Yinson Clover had inked a novation agreement with TLV and PetroVietnam Technical Services (PTSC) for the novation of all rights and liabilities as per the contract to PTSC.

PTSC and Yinson Clover will form a joint venture company to be held 51% by the former and the remainder by the latter. Once the joint venture comes into effect, it will sing a bareboat charter contract with PTSC for the bareboat scope of work under the contract given to Yinson Clover by TLV.

Yinson group executive chairman Lim Han Weng said: “We look forward to deliver our best to TLV and meeting our obligations under the bareboat charter contract. This event marks a new milestone for us by adding another strong contract to the Group’s order book.

“Based on Yinson’s current track record, we will ensure a successful execution of the bareboat scope of work under the Contract and expects a positive contribution to the Group’s bottom-line starting from the financial year ended 31 January 2020.”

In another development related to the CRD project, Singapore-based Keppel FloaTEC has been given a $40m contract to provide engineering and construction support services for the tension leg wellhead platform.