KUALA LUMPUR: Yinson Holdings Bhd has secured a US$39 million (RM127.5 million) contract extension from Addax Petroleum Development (Nigeria) Ltd.
The extension is for the charter of its floating production storage and offloading (FPSO) vessel Knock Adoon, which has been operating in the Antan field in Nigeria.
Addax is a subsidiary of the Sinopec Group, one of China’s largest oil and gas producers.
Yinson said the original contract for the FPSO was awarded on October 17 2006 for eight years, with an option to renew it by another eight years.
Yinson fully owns Knock Adoon, which has a capacity to process 60,000 barrels of oil a day and a storage capacity of 1.7 million barrels.
The original contract expired last Thursday and both parties have agreed to extend the contract to October 16 next year, Yinson said in a statement yesterday.
“The extension is a sign of confidence in the company. We hope to continue our strong working relationship with all our clients and business partners,” said Yinson executive chairman Lim Han Weng.
Yinson is an integrated offshore services provider with four core business units, which are offshore production and support services, commodity trading, logistic services and warehousing and port management.