Yinson and PTSC FSO reaches first oil ahead of schedule offshore Vietnam

Yinson Production and PetroVietnam Technical Services Corporation (PTSC) have reached first oil at their new floating storage and offloading vessel serving Vietnam’s Lac Da Vang field, ahead of the planned fourth-quarter start. Offshore Energy reported that FSO PTSC Lac Da Vang, also known as FSO PTSC LDV, achieved the milestone on 27 September 2026 at Block 15-1/05 offshore Vietnam.

The dual-fuel newbuild has storage capacity of 460,000 barrels. First oil followed provisional acceptance on 20 September, which triggered the start of its firm charter period. According to the report, the vessel is designed to improve operating efficiency and support sustainable offshore oilfield operations. Yinson Production described the start-up as an important operational step for both the storage unit and the Lac Da Vang development.

The FSO is chartered to Murphy Cuu Long Bac Oil, a wholly owned subsidiary of Murphy Oil Corporation. The agreement covers a firm term of ten years, with options that could extend the charter by up to five further years. The storage vessel’s start-up comes as the field enters a development phase expected to see production build through 2028 as further wells are brought into operation.

Murphy Oil operates Block 15-1/05 in the Cuu Long Basin with a 40% working interest. PetroVietnam Exploration Production holds 35%, while SK Earthon owns the remaining 25%. Offshore Energy put the field’s estimated ultimate recovery at 100 million barrels of oil equivalent in gross resources and described the development as a new source of production for Vietnam’s expanding energy sector.

Yinson Production chief executive Flemming Guiducci Grønnegaard credited collaboration between his company, joint venture partner PTSC and client Murphy Oil for the milestone, alongside their technical work and commitment to safety. Singapore-based Yinson Production is part of Kuala Lumpur-based Yinson. The report said the production business has a fleet of 11 vessels, operates across 12 countries and has an orderbook worth approximately $19 billion extending to 2050.