KUALA LUMPUR: Yinson Holdings Bhd has been awarded two long-term contracts worth US$5.4 billion by Brazil’s national oil company Petróleo 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 intents (LOIs) were issued to its indirect wholly-owned Yinson Production Pte Ltd.
“Following the LOIs, 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 Brazil-incorporated subsidiary Yinson Boronia Serviços de Operação Ltda.”
“The estimated aggregate value of the contracts is equivalent to US$5.4 billion. The contract period is for 25 years from the date of the final acceptance,” Yinson said in a statement today.
FPSO Marlim 2 will be Yinson’s first vessel to operate in Brazil waters, and is one of several bids in the region that Yinson has entered into.
Group chief executive officer Lim Chern Yuan said FPSO Marlim 2 would be Yinson’s largest project to date, and that it had been focusing on building its 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 CEO of production Eirik Barclay said much of the needed groundwork and preparations in order to swing into high gear upon project award 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, Yinson said.