THE CONTRACT SIGNING CEREMONY OF FPSO PROVISION FOR CHIM SAO OIL FIELD


THE CONTRACT SIGNING CEREMONY OF FPSO PROVISION FOR CHIM SAO OIL FIELD

At 17:00 pm January 12, 2010, at the Government Office, a cooperation agreement for the operation & maintenance (O&M) service provision was signed between Emas Offshore Construction and Production Pte Ltd (EOCP) and Petrovietnam Transportation Corporation (PVTrans) with the observation of 2 Prime Ministers of Singapore and Vietnam.

Agreement for the operation & maintenance (O&M) service provision was signed between EOCP and PVTrans.

Under this agreement, PVTrans and EOCP will cooperate to establish a joint venture to provide the O&M services for the FPSO at Chim Sao Oil field operated by Premier Oil Vietnam Offshore BV (POVO) for an expected period of 12 years. The parties also agreed that, subject to POVO’s approval, PVTrans will directly implement all the O&M services for the FPSO after 01 year since the delivery of FPSO.

On the same day, at the head quarter of Petrovietnam, a contract signing ceremony for FPSO provision for Chim Sao oil field was held between POVO, PVTrans, EOCP and Petrovietnam Finance Corporation (PVFC).

Contract signing ceremony for FPSO provision for Chim Sao oil field between POVO, PVTrans, EOCP and PVFC.

Based on the approved oil field development plan, Premier Oil has conducted bidding to supply FPSO for oil and gas exploitation in Chim Sao and Dua, Block 12W.

The selection of FPSO supplier was conducted through an international bid with 16 contractors participating in prequalification phase and four contractors short listed in final round; EOCP - PVTrans won bids in good technical results and most competitive price, and the highest local content in conformity with domestic resources development policy of Petrovietnam. The contract was awarded to the consortium among EOCP, Ezra Holdings Ltd, Keppel and PVTrans with a total contract value of nearly U.S. 1 bill including fixed term of 6 years with yearly extension option for 6 subsequent years.

To implement the project, the bid-winning partners will establish a joint venture named PV KEEZ, registered in Singapore with the capital contribution of PV Trans (16.6%), EOCP (26.7%), Ezra Holding Limited (36.7%) and Production Pte KSI (20%) with total investment capital of around 405 million.

The FPSO for POVO to be converted from tanker Lewek Emas, Aframax vessel with capacity of 680,000 barrels. The conversion will be conducted within 18 months at Keppel Shipyard (Singapore) and planned to be ready for First oil in July 2011 as per POVO’s schedule in Chim Sao oil field.At the ceremony, PVFC and Vietnam Joint Stock Commercial Bank for Industry and Trade(Vietinbank) also committed to finance 252 million for this conversion project.

Danh Thanh - Trading Dept.

 

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