VIETNAM NATIONAL OIL AND GAS GROUP
PETROVIETNAM TECHNICAL SERVICES CORPORATION
5" Floor, PetroVietnam Tower, 1-5 Le Duan Street, District 1, Ho Chi Minh City, S.R Viet Nam
‘Tel: (84.28) 39102828 ; Fax: (84.28) 39102929; Website: www.ptse.com.vn
Sa
FACSIMILE TRANSMISSION
To Nghi Son Refinery & Petrochemical LLC. Fax +84 .24 37726427/
+84 23 78738557
Attn: Mr, Mitsuru Yamanaka — Chief Executive Officer
Ce : Mr, Turki Al-Ajmi— Deputy Chief Executive Officer
Mr. Dinh Van Ngoc ~ Deputy Chief Executive Officer
Mr. Seiichiro Fguchi — Acting Division Manager, Operation Division
Mr. Phan Thanh Hai — Acting Manager of Section 6, Operation Division
Mr. Ho Khai Hoan — Procurement Section Manager
From PetroVietnam Technical Services Corporation (PTSC)
ce Mr. Phan Thanh Tung - PTSC President and CEO
Ref 40 'PTSC-TNS Date: October 19", 2017
‘Total no. of Page: 02 pages + attachment ( CF pages)
Subject: Maritime Services Project - Extension of delivery date of New-built Vessels
Dear Sir,
First of all, PTSC would like to express our sincere thanks to you and NSRP for having supported
PTSC in implementation of the Project and wish to receive your continued supports to successfully
complete the Contract with NSRP.
[As you are aware the status of new-built Vessel progress that mentioned in our recent correspondent
with NSRP, our approved shipbuilder Triyards SSY and its affiliates/parent company have been
facing with financial difficulties due to the downturn of oil and gas industry. Such financial
difficulties seriously affect the schedule for completion and delivery of the Vessels by Triyards SSY
fas required in the shipbuilding contract with PTSC. It has been such a long time since the
shipbuilding contract was signed yet Triyards SSY had not been able to find any acceptable banks
to finance for the 8 Vessels building Project and as a result PTSC was unable to proceed with any
payments for them to execute the Project even though Triyards SSY had proposed to subcontract to
Triyards SMV (Triyards Strategic Marine Vietnam) who is an associated company of Triyards SSY,
with 100% assets, equity belonged to/under Triyards Holdings Limited and deemed to have
capabilities and experiences in EPC shipbuilding, better financial position and available credit line
With BIDV to finance for 8 Vessels building Project for PTSC. However, BIDV finally failed to
provide required services for the Project at the last step due to its non-compliance with the Project
cash flow management method which was already agreed by other parties. Basing on that, PTSC
was not able to make payments to Triyards SSY/SMV to execute the Project and accordingly,
‘Triyards SSY/SMV could not make payment for its suppliers. Furthermore, due to its own
discretion, Triyards SSY/SMVeeased the execution of whole work for the Project from 18 Sept
2017.
‘As a contingency and back-up plan, PTSC considered the option to rebid for selection of another
capable shipbuilder to continue the building Project in case Triyards SSY/SMV could not find any
Page 1 of 2 BM.HD.PTSC.VP.01.24-15/7/2014
TWbanks to support on the finance capacity. With this option, we anticipated that the progress of
building the vessels for NSRP would take 14-16 months or longer as the time being because of the
new law enacted and effective as of 01" July 2017 for selection of the shipbuilder which is more
stringent, complicated and time-consuming.
However, given the strong technical capability of Triyards SSY/SMV in shipbuilding practice,
PTSC could not find any better choices to build the Vessels and make delivery to NSRP as soon as
possible, earlier or with minimal delay than continuity with this shipbuilder in case they can find a
bank to support on their project financing. Furthermore, Triyards SSY/SMV also completed about
18% of the Vessels building using their own resources. Therefore, PTSC had tried our best to
support Triyards SSY/SMY to work with several banks in Viet Nam to find a suitable bank to
support them with this Project.
On 27" Sep 2017, we were informed that Orient Commercial Joint Stock Bank (OCB) finally
accepted to finance for the whole Project and after thoroughly studied on catch-up plan from
Triyards SSY/SMV and further requests for due undertakings from OCB, Triyards Holdings
Limited and Triyards SSY/SMV to assure the finance capacity and continuity for the Project until
its completion, PTSC recognizes that we have no better choice but suppose to continue the building
of Vessels with Triyard SSY/SMV as originally accepted by NSRP. PTSC also made Advance
Payment for Triyards SSY/SMV to resume the NSRP’s Vessels building works for a week to this
date
In order to support PTSC and to ensure the new-built Vessels’ availability for NSRP’s operation at
the soonest, PTSC would like to propose the below for NSRP’s kind consideration and approval:
- Extension of the deadline for delivery of all new-built Vessels to 31" October 2018 instead
of 1 December 2017 for 7 Vessels and 17" July 2018 for the SPM Line & Hose Handling
Vessel. The extension of delivery date is due to difficulties as explained in this letter herein
and in shipbuilding works caused by abnormal and long-remained of low crude oil price.
Detailed delivery of each Vessel is as attached herewith for your perusal
= PTSC fully commits to maintain our current Substitute Vessel(s) and experience crews for
the smooth operation of NSRP during the time of building and completing the new-built
Vessels, to the satisfaction of NSRP under the same terms and conditions of the signed
Contract with NSRP.
= The extension of delivery date for new-built Vessels as well as maintaining the current
Substitute Vessel(s) will not result in any additional cost or expense to NSRP;
= To ensure the schedule and quality of the Project, PTSC would like NSRP to delegate your
team for close coordination, supervisory and control with PTSC during the construction of
the new-built Vessels, including but not limited to FAT, arrangement of monthly meeting
for building portion at the shipyard.
PTSC is looking forward to NSRP’s understanding and kind support on the above proposal so that
we can complete and deliver the new-built Vessels to the satisfaction of NSRP while keeping the
smooth operation of Maritime Services for the Refinery.
Thank you very much for your kind cooperation.
Yours faithfully,
Le Chien Thang
Project Director
Page 2 of 2 BM.HD PTSC.VP.01.24-15/7/2014NEW PROPOSED DELIVERY DATE FOR NEW-BUILT VESSELS
NSRP MARITIME SERVICES PROJECT
No | Vessel Name
New Delivery date at NSRP
Port
1 | SPM tugboat (H1065)
31-Aug-2018
2. | SPM Guard boat (#1066) 30-Oct-2018
3. | Harbour Tugboat 1 (H1067) 31-Aug-2018
4 | Harbour Tugboat 2 (H1068) 31-Aug-2018
5 | Harbour Small Line Handling Vessel (H1069)
30-Jun-2018
6 | Harbour Big Line Handling Vessel (H1070)
30-Jun-2018
7 | SPM Transfer Speed Boat (H1071)
30-Apr-2018
8 | SPM Line and Hose Handling Vessel (Azimuth)
30-Oct-2018
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