KUALA LUMPUR (Dec 21): Yinson Holdings Bhd’s 49%-owned joint venture (JV) unit PTSC Asia Pacific Pte Ltd (PTSC AP) will receive a termination fee of US$213.63 million (RM870.97 million) from Petrovietnam Technical Services Corp (PTSC) by Jan 26, 2018 for cancelling a bareboat charter contract.

In a filing with Bursa Malaysia today, Yinson said PTSC AP has signed a settlement and amendment agreement with Petrovietnam Technical Services Corp (PTSC) in relation to the bareboat charter that was terminated on June 30 this year.

The remaining 51% stake in PTSC AP is owned by PTSC.

In April, Yinson said PTSC AP had received a letter from PTSC in its capacity as charterer under a bareboat charter contract dated Dec 28, 2012 to charter FPSO PTSC Lam Son for Blocks 01/97 and 02/97 in the Thang Long–Dong Do field, offshore Vietnam (Lam Son Field).

The bareboat charter was for a fixed primary term of seven years, commencing June 2014.

PTSC said it its letter that Lam Son Field operator Lam Son Joint Operating Co (JOC) is undergoing liquidation and had issued a notice of termination under the time charter contract for FPSE PTSC Lam Son. The termination was slated to happen on June 30 this year.

Lam Son JOC is jointly owned by Vietnam Oil & Gas Group’s wholly-owned subsidiary PetroVietnam Exploration Production Corp Ltd (PVEP) and Petroliam Nasional Bhd’s wholly-owned subsidiary PC Vietnam Ltd.

PTSC’s letter also mentioned that Vietnam Oil & Gas said it has the intention for the petroleum operations to continue at Lam Son Field despite the liquidation of Lam Son JOC.

Having said that, Yinson said PTSC AP is entitled to an early termination payment from PTSC although the exact quantum has to be ascertained in accordance with the terms of the bareboat charter.

In July, Yinson announced that PTSC AP had received a letter of intent (LOI) from PTSC expressing its intention to continue deploying FPSO PTSC Lam Son for the petroleum operations within Lam Son Field from July 1.

Yinson said the petroleum operations within the Lam Son Field will be taken over by PVEP.

Hence, PTSC AP together with PTSC will commence discussion with PVEP regarding a new charter contract for redeployment of FPSO PTSC Lam Son at Lam Son Field.

Yinson’s share price closed up five sen or 1.32% at RM3.84 today, giving it a market capitalisation of 4.18 billion. Year-to-date, the counter has appreciated by 32.87% from RM2.89 on Dec 29 last year.