Yinson bags US$2.54b FPSO charter contract

PETALING JAYA: Yinson Holdings Bhd has bagged a US$2.54 billion (RM9.19 billion) contract, its largest to date, for the chartering, operation and maintenance of a floating, production, storage and offloading (FPSO) facility in Ghana.
In a filing with the stock exchange, Yinson said the contract had been awarded to a consortium of Yinson Production (West Africa) Pte Ltd (YPWA) and Yinson Production West Africa Ltd (YPWAL) by Italy-based Eni Ghana Exploration & Production Ltd.
The FPSO is located at the Offshore Cape Three Points (OCTP) block in the Tano Basin, about 60 km off the coast of Ghana.
The duration of the contract is 15 years effective Jan 27, 2015, with five yearly extension options. The FPSO is expected to commence operations in the OCTP block in 2017.
The total value of the contract could reach US$3.26 billion, with the inclusion of the five yearly extension options.
The FPSO will have an available storage capacity of 1.7 million barrels, with an oil processing capacity of 58,000 barrels per day, a gas injection capacity of 150 million standard cubic feet per day (mmscfd) and a maximum future gas-export capacity of 210 mmscfd.
YPWA is an indirect wholly-owned subsidiary of the Yinson and is the FPSO chartering company. YPWAL, meanwhile is 49%-indirect subsidiary of Yinson and is engaged in the operation and maintenance of the FPSO.
Commenting on the contract, Yinson CEO Lim Chern Yuan said it would be a game-changer for the group.
"This is by far our largest contract to date, which brings us into the top tier of FPSO players, and demonstrates the excellent strategic value of our acquisition of Fred. Olsen Production in 2013.
"Eni Ghana have shown their confidence in Yinson's ability to execute this project by awarding this contract to Yinson and we are fully committed to working with Eni Ghana and its partners to ensure that this project is a success, and that Ghana will have a reliable supply of gas for its electricity generation needs," he noted.
Yinson believes the contract will contribute positively to the revenue and earnings of the group for the financial year ending January 31, 2018 as well as the financial periods thereafter for the duration of the contract.
Yinson shares rose as much as 8 sen or 2.76% to RM2.98 during trading yesterday, but closed unchanged at RM2.90 yesterday on some 7.72 million shares done.