The research house said developments on Yinson
KUALA LUMPUR: Yinson Holdings Bhd
plans to supply a floating production storage and offloading (FPSO) unit to Nigeria’s First Exploration & Petroleum Development Company Ltd (First E&P) to process hydrocarbons offshore the African nation.
Yinson said on Thursday its indirect unit had entered into a heads of terms with its associate Yinson Operations & Production West Africa Ltd and First E&P to negotiate the potential supply and charter of the FPSO.
The FPSO will process the hydrocarbons from the Anyala & Madu fields under Oil Mining Leases 83 & 85.
First E&P owns 40% of the rights to the fields with the remainder being held by Nigerian National Petroleum Corporation (NNPC).
Pursuant to the heads of terms, the companies plan to negotiate the terms for a bareboat charter and an operations and maintenance agreement.
Yinson said the initial term of the bareboat charter is expected to be for seven years; and First E&P may extend the term of the charter for another eight years in total.
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