Friday, December 30, 2011

Yinson eyes O&G sector in Southeast Asia

JOHOR BAHARU (Dec 30): Land transportation and logistics services provider, Yinson Holdings Berhad, is ready to expand its business to embrace the
Oil and Gas (O&G) industry in South East Asia.

Its managing director Lim Han Weng said the company's transformation in the direction of the O&G industry, will not however mean, it was completely
sidelining its land logistics business.

"We will continue to retain between 20-30 per cent of the company's business in the land transportation and logistics services. The oil & gas industry
provides good returns," he told Bernama after the EGM here on Friday.

He said the company saw a lot of opportunities in the O&G sector in Malaysia, Indonesia, Myanmar, Vietnam and Thailand.

"We will build our ability and expertise before entering the oil & gas industry outside of South East Asia. For the moment, the South East Asian market
will suffice," he added.

He said the company's joint venture partner, PetroVietnam Technical Services Corp (PTSC), is now building the first floating, storage and offloading
(FSO) facility in Busan, South Korea at a cost of US$150 million and which is expected to be ready in 2013.

The FSO will have a capacity of 350,000 barrels of liquefied natural gas for use to fuel power plants.

In June this year, Yinson received a US$331 million contract for the FSO provision and rental from PTSC for 10 years, with the option to renew for a
further 10.

The two parties had agreed to jointly provide the FSO based on a bareboat charter basis to PTSC, which would charter it in turn to Bien Dong Petroleum Operating Co.

Lim said the next move for the company is to enter the floating production, storage and offloading (FPSO)facility for the O&G industry in this region.

He said the FPSO service is more technical than the FSO and needs a bigger capital of at least US$500 million.

He added that in the light of not many local companies having entered he FPSO service, Yinson believes, it has the ability to grab a lot of revenue
opportunities in that sector.

"We are moving in this direction (FPSO service)," he said.

At present, the local companies involved in the provision of the FPSO service are Bumi Armada and MISC.

Lim said the company was also looking at opportunities arising from the effort by Petronas to undertake the US$20 billion Refinery and Petrochemicals
Integrated Development (RAPID) project in Pengerang, Johor.

"We have plans to participate in the opportunities arising from the RAPID," he added. - Bernama

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