Yinson in talks to supply FPSO to Nigerian firm

PETALING JAYA: Yinson Holdings Bhd is in exclusive talks to supply a floating production storage and offloading (FPSO) unit to Nigeria's First Exploration & Petroleum Development Company Ltd (First E&P).
Yinson told Bursa Malaysia that its indirect wholly owned subsidiary Yinson Production Pte Ltd (YPPL) had entered into a heads of terms (HOT) with its associate Yinson Operations & Production West Africa Ltd (YOPWAL) and First E&P for the potential supply and charter of the FPSO unit to process hydrocarbons from the Anyala & Madu fields under Oil Mining Leases 83 & 85, offshore Nigeria.
First E&P is a Nigerian oil and gas company. It owns 40% of the rights to the fields with the remainder being held by Nigerian National Petroleum Corporation on an unincorporated joint venture basis.
The initial term of the bareboat charter is expected to be a period of 7 years and First E&P may extend the term for another eight years in total.
The terms of the agreement include a bareboat charter to be entered into between First E&P and a special purpose company of YPPL; and an operations and maintenance agreement to be entered into between First E&P and YOPWAL or an affiliate of YOPWAL approved by First E&P.
Yinson shares closed 9 sen or 1.9% higher at RM4.74 on 248,100 shares traded.