Revolutionizing Offshore Energy: Vietnam’s Cutting-Edge Floating Storage Unit Takes Shape

A New Era for Vietnam’s Oil Fields

In a bold move to bolster Vietnam’s energy security, Yinson Production, a subsidiary of the Kuala Lumpur-based energy giant Yinson Holdings, has officially kicked off construction of a state-of-the-art Floating Storage and Offloading (FSO) unit. The steel-cutting ceremony, held on February 22, 2025, at Nantong Strongwind Shipyard in China, marks a pivotal moment in the development of the Lac Da Vang oil field, located offshore Vietnam.

This isn’t just another oil project—it’s a game-changer. Designed for low-carbon operations, the FSO will have a storage capacity of 500,000 barrels and is expected to be operational by late 2026. The project is a collaboration between Yinson Production, PTSC Asia Pacific, Murphy Oil, and other key stakeholders, all united in their mission to optimize energy production while minimizing environmental impact.

Cutting-Edge Tech Meets Sustainability

What sets this FSO apart is its integration of advanced technologies aimed at reducing operational costs and carbon footprints. OceanSTAR Elite Group, the builder behind the project, has incorporated innovative systems like platform-associated gas utilization and energy circulation optimization. These features not only enhance efficiency but also align with global sustainability goals.

The FSO is part of a broader strategy to develop the Lac Da Vang field, which boasts an estimated ultimate recovery of 100 million barrels of oil equivalent (mmboe). With peak production projected at 30 to 40 thousand barrels per day (mboepd), this project is set to significantly boost Vietnam’s energy output.

A Collaborative Effort for Energy Security

The ceremony brought together a who’s who of the energy sector, including representatives from PTSC Asia Pacific, Murphy Cuu Long Bac Oil Company, and Titan Wind Offshore. The project is a testament to international collaboration, with Murphy Oil holding a 40% working interest in Block 15-1/05 of the Cuu Long Basin, alongside partners PetroVietnam Exploration Production and SK Earthon.

This FSO is just one piece of the puzzle. Murphy Oil recently struck oil in the nearby Hai Su Vang field, further solidifying the region’s potential as a major energy hub. With the first oil expected in 2026 and development phased through 2029, Vietnam is poised to become a key player in the global energy market.