The Hoang Long Joint Operating Co has concluded a US$700 million contract to lease a floating, production, storage and offloading (FPSO) vessel.
The Hoang Long Joint Operating Co has concluded a US$700 million contract to lease a floating, production, storage and offloading (FPSO) vessel from Malaysia-based Bumi Armada Berhad-Vietsov-petro Contractor Alliance.
Under the contract, a tanker capable of carrying of 1 million barrels of oil will be converted into an FPSO vessel at Singapore"s Keppel Shipyard. It is expected to come on stream in June 2011 for the White Rhinoceros Oil Field Project in the Cuu Long Basin offshore Ba Ria-Vung Tau.
The Malaysian firm will be in charge of the oil vessel acquisition and its conversion. Vietsovpetro, a joint venture of PetroVietnam will install the platform.
Bumi Armada will also be in charge of the Bare Boat Charter part, which will last seven years.
Vietsovpetro will operate and maintain the FPSO and the White Rhinoceros Field in that seven year period.
The contractor alliance was selected by Hoang Long JOC through an international bidding process that attracted 17 tenders.