Yinson bags US$5.4b contracts from Brazil's Petrobras


  • Corporate News
  • Wednesday, 16 Oct 2019

Yinson Holdings Bhd has received two letters of intent (LOI) from Petróleo Brasileiro S.A. (Petrobras) with a value of US$5.4bil to provide a vessel and also operations and maintenance over 25 years.

KUALA LUMPUR: Yinson Holdings Bhd has received two letters of intent (LOI) from Petróleo Brasileiro S.A. (Petrobras) with a value of US$5.4bil to provide a vessel and also operations and maintenance over 25 years.

Yinson said on Wednesday the first LOI was for a floating production storage and floating facility (Marlim 2 FPSO) to the Marlim field offshore Brazil in the north-eastern part of the Campos basin.

The second LOI was for the operation and maintenance during the charter phase of Marlim 2 FPSO.

The LOIs were issued to Yinson Production Pte Ltd, an indirect unit of the Yinson group.

The estimated aggregate value of the contracts is equivalent to US$5.4bil. The contract period is for 25 years from the date of the final acceptance.

FPSO Marlim 2 will be Yinson’s first vessel to operate in Brazil waters, and is one of several bids in the region that the group has entered into.

Yinson group CEO Lim Chern Yuan said FPSO Marlim 2 would be Yinson’s largest project to date, and that the Group had been focusing on building their resources, capacity and expertise in order to meet the project’s delivery and timeline.

“This project further cements Yinson’s position as a global FPSO player, demonstrating the industry’s increasing confidence in our ability to deliver projects on time, and thereafter to maintain our excellent uptime and safety track record,” he said.

Yinson’s CEO production Eirik Barclay added that much of the needed groundwork and preparations in order to swing into high gear upon project award has already been completed.

“The team is excited and ready to demonstrate that we are able to meet the expectations of our client and project partner in realizing this project. We are committed to giving our very best towards this project in order to contribute to the advancement of the energy industry in Brazil,” he said.

In March 2019, Yinson and Sumitomo Corporation announced their intention to collaborate on the Marlim revitalisation project, in which Sumitomo would participate with an effective interest of at least 20% in the event of a successful bid by Yinson.

Yinson said the shareholder agreement pertaining to this collaboration is expected to be announced in due course.
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Yinson , Petrobras , FPSO

   

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