Yinson, Malaysian floating production, storage and offloading (FPSO) operator has entered into a multi-millionaire deal for an FPSO vessel to be deployed offshore Nigeria.
The Malaysian firm agreed to the deal via its wholly-owned subsidiary, Yinson Nepeta Production Limited (YNPL) and indirect subsidiary Yinson Operations and Production West Africa Limited (YOPWAL).
Yinson and Nigerian oil and gas company, First Exploration & Petroleum Development Company Limited (First E&P) sealed the $901.79 million deal to execute the contract which is viewed as a strategic decision for a cost-effective solution.
Breakdown of the contract
According to Offshore Engineer (OE), 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 (N189.35 billion).
Also, in the deal include the Operation and Maintenance (O&M) contract of $284.7 million (N87.36 billion). The FPSO is expected to commence operations at the Anyala and Madu fields by the fourth quarter of 2019.
Yinson’s reaction to deal
Lim Chern Yuan, the Group Chief Executive Officer of Yinson, 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.
According to reports, 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 and at the same time delivering a more cost-effective solution for our client,” the Yinson CEO said.
About First E&P
First Exploration & Petroleum Development Company Limited (FIRST E&P) is a Nigerian oil and gas company that was established in 2011. It started formal business operations on the 1st of July, 2012. FIRST E&P’s mission is to be a deeply technical, commercial and entrepreneurial organisation, with full delivery capability across the entire upstream oil and gas value chain.
Yinson Holdings Berhad, an investment holding company, operates as a floating, production, storage, and offloading (FPSO) service provider. The company operates through Offshore & Marine and Other Operations segments. It provides vessels and marine related services. The company engages in the ownership and operation of ships; trading, leasing, and sub-leasing of vessels on bareboat and time charter basis; provision of consulting services relating to ship management; provision of FPSO vessels for chartering and service activities incidental to oil and gas extraction; and shipping and vessel chartering activities.