PVTrans to hold The signing Ceremony of Shareholder Agreement for Establishment the Joint Venture to Supply FPSO for Chim Sao Project between PVTRANS – EOCP – EZRA – KEPPEL


PVTrans to hold The signing Ceremony of Shareholder Agreement for Establishment the Joint Venture to Supply FPSO for Chim Sao Project between PVTRANS – EOCP – EZRA – KEPPEL

February 4, 2010, Ho Chi Minh City, PetroVietnam Transportation Corporation, Emas Offshore Construction and Production Pte Ltd (EOCP), Ezra Holdings Limited Production and KSI signed a Shareholder Agreement to establish a joint venture company called PVKEEZ to supply Floating Production, Storage and Offloading Vessel (“FPSO”) and related services to Premier Oil Vietnam Offshore in respect of the Chim Sao project in Vietnam.

PVTrans is expected to take up an equity stake of up to 16.6% in PVKEEZ.

Mr. Do Van Lien, Chairman of PVTrans’ Board of Directors, gave speech at The Signing Ceremony

The establishment of this joint venture is the next milestone since the successful award of the Chim Sao contract to Emas Offshore Construction and Production Pte Ltd (EOCP), a subsidiary of EOC. The ultimate winning bid for the tender consisted of a superior technical proposal and competitive pricing, coupled with the maximization of local content, which is in conformance with guidelines set by Vietnam Oil and Gas Group (PetroVietnam) to develop internal resources. Awarded by POVO, the Chim Sao FPSO contract is worth up to approximately US$1 billion with all extension options exercised.

All shareholders at the Signing Ceremony

According to the schedule, the FPSO vessel will be converted from tanker Lewek Emas, an Aframax ship with a capacity of 680,000 barrels. The conversion will be completed within 18 months at the Keppel Shipyard (Singapore) and First Oil is expected to be Mid- 2011 which is in accordance with POVO’s Phase 1 development plan in Chim Sao oil field. In the operation period of FPSO vessel, PVTrans and EOCP will incorporate a special purpose entity to jointly provide operation and maintenance services to PVKEEZ in the first year. In the later years, PVTrans will be entrusted with the responsibility of performing the O&M scope independently with minimal involvement from EOC.

Minh Ngoc - Trading Dept.

 

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