PTSC Asia Pacific is a joint venture between PetroVietnam Technical Services Corporation (PTSC), in which Yinson and PTSC holds 49% and 51%, respectively.
On March 31, 2017, Lam Son Joint Operating Company (LSJOC), the operator of Lam Son field, had issued a notice of termination to PTSC for FPSO PTSC Lam Son. The service of such notice of termination is pursuant to the liquidation of LSJOC, which is scheduled to occur on June 30.
A filing with Bursa Malaysia by Yinson yesterday said that in the same letter, PTSC served a notice of termination for convenience to PTSC Asia Pacific under the Bareboat Charter.
The note filed with Bursa said that PTSC Asia Pacific is entitled to an early termination payment from PTSC although the exact quantum will be ascertained in accordance with the terms of the Bareboat Charter.
LSJOC is jointly owned by PetroVietnam Exploration Production Corporation, a wholly-owned subsidiary of PetroVietnam and PC Vietnam Limited, a wholly-owned subsidiary of Petroliam Nasional Bhd (Petronas).
PTSC has informed PTSC Asia Pacific that Vietnam Oil & Gas Group (PetroVietnam), the ultimate holding company of one of the shareholders of LSJOC, has the intention for the petroleum operations to continue at Lam Son field despite the liquidation of LSJOC.
It added that it is the intention of PetroVietnam to continue to utilize FPSO PTSC Lam Son.
The filing with Bursa said there is no material adverse financial impact to PTSC Asia Pacific and Yinson will continue to work together with PTSC on future developments during the transition period.
The Bareboat Charter that was terminated was entered into in December 2012, and was for a fixed primary term of seven years commencing from June 2014.
At closing, Yinson edged higher by 0.30% to RM3.32 with 5.83 million shares changing hands, giving it a market capitalisation of RM3.6 billion.
Source: The Edge Markets