This article first appeared in The Edge Financial Daily on March 17, 2020

KUALA LUMPUR: Yinson Holdings Bhd said its Vietnam joint venture (JV) PTSC Asia Pacific Pte Ltd (PTSC AP) had entered into a bareboat charter contract worth US$122.87 million (RM528.34 million) with Petrovietnam Technical Services Corp (PTSC) commencing from July 1, 2017 to June 30, 2021.

In a bourse filing yesterday, the integrated offshore service provider said the contract replaces the bareboat charter interim contract it had entered with PTSC on Jan 15. PTSC AP is a 49:51 JV between it and PTSC.

“Parties will have the right to terminate the contract subject to a 90-day notice period. Subject to the mutual agreement of the parties, the contract may be further extended thereafter,” it added.

The contract between PTSC AP and PTSC is for the charter of PTSC Lam Son floating production, storage and offloading vessel for the petroleum operations within the Lam Son field, off Vietnam.

“The bareboat charter contract will not have any effect on the share capital and shareholding structure of the company,”said Yinson.

Shares in Yinson closed down 37 sen or 6.5% at RM5.33 yesterday, bringing it a market capitalisation of RM5.83 billion.