Two oil firms from Vietnam and Malaysia will set up a joint venture to build a floating oil tank system offshore to store crude oil or gas produced at their nearby platforms.
The Floating Production, Storage and Offloading (FPSO) tank system will be moored at the offshore Ruby field.
The Petroleum Technical Services Company (PTSC), a subsidiary of PetroVietnam, will hold a 60 percent stake in the JV, owning the US$280 million FPSO. The remainder will be held by Malaysia International Shipping Corporation (MISC).
The FPSO has a storage capacity of 645,000 barrels, approximately 100,000 tons, and a daily production capacity of 45,000 barrels.
By using crude from nearby platforms, the FPSO can process it before transporting it to refineries.
MISC will take charge of the engineering, procurement, and life extension of the floating storage system, while PTSC will be responsible for the offshore installation of the asset.
PTSC will also operate and maintain the system.
The JV signed an agreement this month with Petronas Carigali Vietnam to lease the system for 8 years from 2009 with the option to extend yearly by up to 10 years.