Yinson Production and PetroVietnam Technical Services Corporation, known as PTSC, have announced that the floating storage and offloading vessel FSO PTSC LDV achieved first oil at the Lac Da Vang field in Block 15-1/05, offshore Vietnam, on 27 September 2026.

First oil achieved ahead of schedule

The milestone arrived ahead of the previously communicated Q4 2026 schedule, marking an early start to operations for the dual-fuel powered newbuild vessel. The announcement was made in a news release dated 23 October 2026, issued from Singapore. In it, the two companies described the achievement of first oil as a major milestone, both for the FSO itself and for the Lac Da Vang field, which now begins producing from one of Vietnam's offshore blocks.

Provisional acceptance and the start of the firm charter

The first oil milestone followed shortly after the vessel's Provisional Acceptance on 20 September 2026.

According to the companies, that acceptance marked the start of the firm charter period for the FSO, meaning the vessel moved from completion and acceptance into its contracted operational phase within a week. FSO PTSC LDV is a newbuild vessel with dual-fuel power, a configuration the companies highlighted in the announcement of the first oil achievement. The vessel is now operating at the Lac Da Vang field, located in Block 15-1/05 offshore Vietnam.

A ten-year contract with Murphy Oil

The FSO is chartered to Murphy Cuu Long Bac Oil Co., Ltd., a wholly owned subsidiary of Murphy Oil Corporation.

The charter runs under a 10-year firm contract, with extension options of up to five additional years, giving the arrangement a potential total duration of up to 15 years should the extensions be exercised. The structure of the charter places Yinson Production and PTSC in a joint venture arrangement serving Murphy Oil as the client at the field. The companies' announcement identified Murphy Oil Corporation as the client for the FSO PTSC LDV operations at Lac Da Vang.

Field development to ramp up through 2028

The Lac Da Vang field's development is expected to ramp up through 2028 as additional wells are brought online.

According to the announcement, the field is intended to provide a vital new source of production to support Vietnam's growing energy sector.

The reference to additional wells coming online through 2028 indicates that the start-up achieved on 27 September 2026 represents the beginning of a phased development rather than the full production profile of the field. The companies did not specify production volumes or the number of wells involved in the announcement.

Leadership comments on the milestone

Flemming Guiducci Grønnegaard, Chief Executive Officer of Yinson Production, commented on the achievement in the announcement. He described achieving first oil for FSO PTSC LDV as a proud moment for Yinson Production and a major operational milestone for the Lac Da Vang field.

Grønnegaard attributed the achievement to strong collaboration, technical excellence, and a shared commitment to safety among Yinson Production, its joint venture partner PTSC, and its client Murphy Oil Corporation.

He added that the company looks forward to delivering safe, reliable, and successful operations alongside its partners for years to come.

Context for the partners

The project brings together a Vietnamese state-linked technical services provider and an international floating production contractor in a joint venture structure. PTSC, formally PetroVietnam Technical Services Corporation, is the joint venture partner of Yinson Production on the FSO PTSC LDV. Yinson Production is part of Yinson Holdings Berhad, the parent organisation under whose news release the first oil announcement was published.

The naming of the vessel itself, FSO PTSC LDV, reflects both the joint venture partner and the field it serves, with LDV corresponding to Lac Da Vang.

The vessel is classified in the announcement as a floating storage and offloading vessel, or FSO, as distinct from a floating production storage and offloading unit.

Timeline of key milestones

The sequence of events set out in the announcement shows a compressed period between final stages of the project and start-up. Provisional Acceptance was achieved on 20 September 2026, starting the firm charter period.

First oil at the Lac Da Vang field followed on 27 September 2026, one week later, and ahead of the Q4 2026 schedule that had previously been communicated. The announcement of these milestones was made on 23 October 2026, close to a month after the first oil event itself, in a news release issued by Yinson Holdings Berhad from Singapore.

What lies ahead

With first oil achieved and the firm charter period underway, the vessel begins its contracted service life at Lac Da Vang under the ten-year agreement with Murphy's subsidiary.

The stated expectation that the field will ramp up through 2028 as additional wells are brought online frames the coming years as a period of growth for the asset.

The extension options of up to five additional years attached to the charter provide for the possibility of operations extending well beyond the initial firm term. For Vietnam's energy sector, the companies positioned the field as a new source of production, with the first oil announcement describing it as a vital contribution to a sector they characterised as growing.

The first oil announcement stands as the most recent public update on the project in the source material, with no further operational details, production figures, or financial terms disclosed beyond those stated in the 23 October 2026 news release.