KUALA LUMPUR: Job flows in the global oil and gas industry are picking up, primarily due to the decline in industry players, said Yinson Holdings Bhd group CEO Lim Chern Yuan.Yinson, a provider of floating production, storage and offloading (FPSO) vessels, has been increasingly bidding for jobs last year and the group is optimistic of securing most of them.
“It is not that there is a significant increase in the number of jobs globally, but the main factor is the decline in the number of competitors in the industry – there are just not as many as there were before.
“Many have not been able to survive the downturn in the past couple of years, and this is also why we are optimistic about our business and prospects ahead,” said Lim after Yinson’s AGM yesterday.
He added that Yinson is prepared to take on more jobs, should opportunities arise, given the group’s depth of experience in delivering FPSO projects and a stronger engineering team.
While being optimistic of Yinson’s abilities to execute jobs well and the industry’s prospects, Lim is also cognisant of implementing a sustainable business model.
“We do have the appetite (to take on more jobs), but we also have our risk matrix, to ensure that our sustainable model works throughout downturns.
“Sustainability here means that we present fair prices and terms for our clients - decent commercial terms, where it’s a win-win for both our clients and us.
“This allows our clients to work longer and helps us survive in the longer run as well,” Lim explains.
Yinson is reportedly at the frontlines of three FPSO job bids, namely Marlim and Parque das Baleias complex in Brazil, as well as Greater Pecan in Ghana.
These projects are expected to be awarded by year-end.
Additionally, Upstream reported yesterday that Yinson has arrived to agreements to purchase two very large crude carriers (VLCCs), in anticipation of the upcoming FPSO jobs that it is bidding for.
The oil and gas news portal also reported that Yinson had purchased a VLCC last year for an estimated US$30mil, which is currently offline and stacked in Singapore.