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YINSON Secures FPSO Contracts in Nigeria

YINSON HOLDINGS BERHAD has been awarded contracts for the charter, operations and maintenance of a floating production storage and offloading (FPSO) vessel by FIRST Exploration & Petroleum Development Company Ltd for use at the Anyala & Madu fields in Nigeria.

The contracts were entered into via wholly owned subsidiary Yinson Nepeta Production Ltd (YNPL) and indirect subsidiary Yinson Operations & Production West Africa Ltd (YOPWAL). YNPL is the FPSO chartering company while YOPWAL is the company engaged in the operations & maintenance of the FPSO.

The estimated aggregate value of the contract, assuming the extension options are fully exercised, is USD901.793 million, comprising the Bareboat Charter Contract (USD617.093 million) and the O&M contract (USD284.700 million).

The FPSO contracts are for a firm period of seven (7) years followed by a two-year and six (6) yearly extension options exercisable by FIRST E&P. The FPSO is expected to commence operations at the fields by the fourth quarter of 2019.

Yinson Group Chief Executive Officer Mr Lim Chern Yuan revealed that Yinson would be redeploying one of their existing vessels, FPSO Allan, to Anyala & Madu, and that the vessel would be renamed FPSO Abigail-Joseph. FPSO Allan recently ceased operations on 31 January 2019 after nearly 10 years tenure at the Olowi Field in Gabon.

“The redeployment of FPSO Allan is a strategic decision that has enabled us to bring forward the project schedule at the same time delivering a more cost-effective solution for our client,” said Mr Lim.

“Our engineering and technical teams have been working with FIRST E&P on the Front-End Engineering Design of this project many months, and we are confident that we will meet the expectations of our project partners and local authorities in supporting the development of the Nigerian oil and gas industry,” he continued.

FPSO Abigail-Joseph will be Yinson’s second vessel to operate in Nigerian waters, with the first being FPSO Adoon which is currently operating in Block OML 123. The project is expected to contribute positively to the Group’s earnings for the financial year ending 31 January 2020 onwards until the expiry or termination of the contracts.