Yinson, First E&P in $902 Mln FPSO Deal

Malaysia’s floating production storage and offloading (FPSO) operator Yinson and Nigerian oil company First Exploration & Petroleum Development Company Ltd (First E&P) have executed a contract for an FPSO to be deployed offshore Nigeria.

The contracts worth $901.79 million were entered into via its wholly-owned subsidiary Yinson Nepeta Production Ltd (YNPL) and indirect subsidiary Yinson Operations & Production West Africa Ltd (YOPWAL).

The estimated aggregate value of the contract is based on the assumption that the extension options are fully exercised, comprising the bareboat charter contract of $617.09 million (RM2.51 billion) and the O&M contract of $284.7 million (RM1.16 billion).

The FPSO is expected to commence operations at the Anyala and Madu fields by the fourth quarter of 2019.

Yinson group chief executive officer Lim Chern Yuan said the group would be redeploying one of its existing vessels, FPSO Allan, to Anyala & Madu, and the vessel would be renamed FPSO Abigail-Joseph.

FPSO Allan ceased operations on January 31, after a tenure of nearly 10 years 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," the Yinson CEO said.