Yin­son still in talks over FPSO ves­sel char­ter

The Star Malaysia - StarBiz - - News - By TOH KAR INN karinn@thes­tar.com.my

PETALING JAYA: Yin­son Hold­ings Bhd has clar­i­fied that it is still cur­rently in talks with Ja­pan’s JX Nip­pon Oil & Gas Ex­plo­ration (Malaysia) Ltd and TH Heavy En­gi­neer­ing Bhd (THHE), in re­gards to Yin­son tak­ing over the float­ing pro­duc­tion, stor­age, and of­fload­ing (FPSO) ves­sel char­ter for JX Nip­pon.

In a Bursa Malaysia fil­ing yes­ter­day, Yin­son said it has not en­gaged in any dis­cus­sions re­gard­ing the pur­chase of any as­sets in Sabah.

The an­nounce­ment was made in re­sponse to a lo­cal busi­ness daily ar­ti­cle en­ti­tled “Yin­son May Of­fer Life­line to TH Heavy”.

“Yin­son is con­stantly ex­plor­ing and eval­u­at­ing busi­ness op­por­tu­ni­ties in its home mar­ket, which are in line with the group’s long term ob­jec­tives and growth to ex­pand its FPSO busi­ness, in­clud­ing ex­plor­ing re­de­ploy­ment op­por­tu­ni­ties for its fleet.

“The op­por­tu­nity (of tak­ing over the FPSO ves­sel char­ter for JX Nip­pon) is one of the few Malaysian pro­pos­als which the com­pany is cur­rently eval­u­at­ing.

“The pro­posal re­mains in dis­cus­sion stage,” it said.

Shares of loss-mak­ing THHE had at­tracted trad­ing in­ter­est over talk that Yin­son may of­fer a life­line for some of the for­mer’s as­sets, in­clud­ing the Layang oil and gas field.

The 30%-owned Lem­baga Tabung Haji com­pany had se­cured the Layang field con­tract from JX Nip­pon back in 2014.

THHE closed 22.2% higher at 11 sen yes­ter­day, traded on a vol­ume of 128.22 mil­lion shares.

In­dus­try sources be­lieved that Yin­son is not keen to pur­chase any of its smaller ri­val’s as­sets.

“Yin­son is in talks with JX Nip­pon but there is noth­ing con­crete on the Layang project at present as it is still too pre­lim­i­nary,” an in­dus­try source close to the com­pany told StarBiz.

The bid­ding process of FPSO con­tracts gen­er­ally take six months to two years, he said.

“In the event that Yin­son does bid for the Layang project, it is likely that the com­pany will look for al­ter­na­tive so­lu­tions, in­stead of buy­ing over THHE’s FPSO as­set that is to be leased for the Layang field,” said the source.

The com­pany con­verted the Lau­rita, bought in 2011 for US$82.5mil, into the Deep Pro­ducer 1 FPSO at an es­ti­mated US$230mil (RM875mil), which was to be leased to JX Nip­pon for de­ploy­ment at the Layang field.

But since last year, THHE had been served with sev­eral wind­ing-up pe­ti­tions, plus claims amount­ing to over RM45mil, mostly in re­la­tion to work for the Layang FPSO project.

Last month, THHE was given eight more months to sub­mit its reg­u­lar­i­sa­tion plan to ad­dress the com­pany’s PN17 sta­tus and pay its cred­i­tors.

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