Yinson to sell 26% stake in FPSO unit in Ghana
It signs HoA to dispose of stake to Japanese consortium
PETALING JAYA: Yinson Holdings Bhd has entered into a heads of agreement (HoA) with a consortium of Japanese companies for the disposal of a 26% stake in its floating production, storage and offloading (FPSO) unit in Ghana.
The value of the stake in Yinson Production (West Africa) Pte Ltd (YPWA), the company said yesterday, was estimated in the range of US$104mil to US$117mil.
“The group welcomes the Japanese consortium on board FPSO John Agyekum Kufuor (FPSO JAK) via this monumental collaboration between both parties,” Yinson’s group executive chairman Lim Han Weng said in a statement.
FPSO JAK produced its first oil in record time-to-market last month.
The company said the HoA was entered into pursuant to the understanding between Yinson and the consortium in forming a collaboration through YPWA in relation to the FPSO charter contract at Offshore Cape Three Point Block in Ghana.
The members of the Japanese consortium are Sumitomo Corp, Kawasaki Kisen Kaisha Ltd, JGC Corp and the Development Bank of Japan.
“The group believes that the entry of these strategic shareholders will enable the parties to form a long-term relationship, which then allows each member to tap into the expertise and background of the rest,” Lim said.
“In addition, such a collaboration will help to fortify the group’s footprint in the FPSO industry,” he added.
The company said that the completion of the proposed transaction was subject to the parties entering into a definitive sale and purchase agreement and shareholders’ agreement, as well as obtaining the approvals of the shareholders of Yinson, regulatory authorities and project financing lenders.
Meanwhile, in a separate development, Yinson said that it was commencing talks with PetroVietnam Exploration and Production Co (PVEP) to continue with its FPSO contract at the Lam Son oilfield in Vietnam for a new charter contract.
The contract will be undertaken by PTSC AP, a joint venture between Yinson and PetroVietnam Technical Services Corp.
Yinson added that PTSC AP had received a letter of intent (LoI) from PTSC on June 30 expressing its intention to continue deploying FPSO PTSC Lam Son within the Lam Son Field from July 1.
The LoI is valid for a maximum period of six weeks.
“Pursuant to the acceptance of the LoI, PTSC AP together with PTSC will commence discussions with PVEP regarding a new charter contract for the redeployment of FPSO PTSC Lam Son at the Lam Son field,” it said.
The FPSO contract was terminated in April because the previous owner of the oilfield was liquidated.