Yinson has signed firm contracts with Enauta Energia S.A. (“Enauta”) for the provision, operation and maintenance of a floating, production, storage and offloading (“FPSO”) asset in the Atlanta Field located in the Santos Basin, offshore Brazil (“Project”).
Pursuant to the Letter of Intent dated 17 December 2021, agreements were entered into through indirect wholly owned subsidiaries, Yinson Production Offshore Pte Ltd, Yinson Production EPC Pte Ltd, Yinson Bouvardia Holdings Pte Ltd and Yinson Bouvardia Serviços de Operação Ltda.
The engineering, procurement, construction and installation of the FPSO are expected to be completed by the first half of 2024. Prior to the completion of the construction of the FPSO, Yinson has the discretion to exercise the call option to acquire the asset-owning company of the Project with a 15-year time charter agreement and operation & maintenance agreement, whereby Enauta has a right to extend the agreements by a further 5 years.
The Project has an estimated aggregate value of USD505 million (including a 2-year operations and maintenance agreement), with a further increase to USD1,981 million (inclusive of 5 years extension period) should Yinson exercise the call option. The FPSO is one of Yinson’s three assets in Brazil, bringing the Group’s total fleet to nine floating assets.
Yinson Group Chief Executive Officer Lim Chern Yuan commented, “Brazil awarded majority of the FPSO contracts in 2021 and we expect it will continue to be the dominant FPSO market going forward. With our strong track record, Yinson aims to passionately deliver powerful solutions for Enauta. Our goal is to contribute positively towards the development of Brazil’s energy industry.”
Yinson Chief Executive Officer Offshore Production, Flemming Grønnegaard said of the award, “Our steadfast commitment is towards pioneering low-emission designs from the get-go and this Project is no different. Both Yinson and Enauta have been working closely since last year and we are making solid progress. We believe that our close working relationship with Enauta will help us move a step closer toward Yinson’s zero emission FPSO concept of the future and our goal of achieving net zero by 2050.”