Yinson wins RM3.67bil oil and gas jobs in Nigeria

The research house said developments on Yinson

PETALING JAYA: Yinson Holdings Bhd has been awarded contracts for the charter, operations and maintenance (O&M) of a floating production storage and offloading (FPSO) vessel amounting to an estimated US$901.79mil (RM3.67bil) for use at the Anyala and Madu fields in Nigeria. 

The FPSO contracts, awarded by First Exploration & Petroleum Development Co Ltd (First E&P), are for a firm period of seven years, followed by a two-year and six yearly extension options exercisable by First E&P. 

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 US$617.09mil (RM2.51bil) and the O&M contract of US$284.7mil (RM1.16bil). 

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

Yinson group CEO Lim Chern Yuan revealed that Yinson would be redeploying one of its vessels, FPSO Allan, to Anyala & Madu, and that the vessel would be renamed FPSO Abigail-Joseph. 

FPSO Allan recently ceased operations on Jan 31, 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 and at the same time delivering a more cost-effective solution for our client. 

“Our engineering and technical teams have been working with First E&P on the front-end engineering design of this project for 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 said in a statement.

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 January 31, 2020 onwards, until the expiry or termination of the contracts.