Yinson bags 2 long-term contracts worth US$5.4b in Brazil
Yinson Holdings Bhd has been awarded two long-term contracts worth US$5.4 billion (RM22.6 billion) by Brazil’s national oil company Petroleo Brasileiro S.A.
The contracts are for the charter, operations and maintenance of FPSO Marlim 2, a floating, production, storage and offloading vessel, for the Marlim revitalisation project in Brazil.
Yinson said two letters of intent (LoI) were issued to its indirect wholly-owned Yinson Production Pte Ltd.
“Following the LoI, the charter contract will be entered into by Yinson’s Netherlands-incorporated indirect subsidiary Yinson Boronia Production B.V, while the operation and maintenance (O&M) contract will be entered into by Yinson Boronia’s Brazilin-corporated subsidiary Yinson Boronia Servicos de Operacao Ltda.”
“The contract period is for 25 years from the date of the final acceptance,” said Yinson in a statement yesterday.
FPSO Marlim 2 will be Yinson’s first vessel to operate in Brazilian waters and is one of several bids in the region that Yinson has entered.
Group chief executive officer (CEO) Lim Chern Yuan said FPSO Marlim 2 would be Yinson’s largest project to date, and the company had been focusing on building its resources, capacity and expertise to meet the project’s delivery and timeline.
“The 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 maintaining our excellent uptime and safety track record,” he said.
Yinson CEO of production Eirik Barclay said much of the needed groundwork and preparations had already been completed.
In March this year, Yinson and Sumitomo Corp announced their intention to collaborate on the Marlim revitalisation project. Japan-based Sumitomo would participate with an effective interest of at least 20 per cent in the event of a successful bid by Yinson.
The shareholder agreement pertaining to the collaboration was expected to be announced in due course, said Yinson.