• The multi-tranche financing with a maturity of up to 10 years post-delivery of the
Agogo FPSO combines banks and institutional investors in one transaction
• Yinson Production was awarded the contract for the Agogo FPSO with a total contract
value of up to approximately USD 5.7 billion in February 2023
• The Agogo FPSO, designed with a full suite of carbon emission reduction technologies, is
the first-ever FPSO featuring carbon capture technology
Yinson Production is pleased to announce the successful closing of
the limited recourse term loan facility of up to USD 1.3 billion for the pre- and post-delivery
financing of the Agogo FPSO.
The financing is provided by a consortium of 13 lenders, including international banks and
institutional investors, and will be utilised over the course of the construction of the FPSO. The
financing comprises three pari-passu secured tranches with staggered maturities of up to 10
years post-delivery of the FPSO. Subject to satisfaction of certain conditions, the financing will
become non-recourse post-delivery of the FPSO. Standard Chartered Bank (Singapore) Ltd.
acted as Global Coordinating Bank for the financing.
Yinson Production entered into a firm contract for the provision, operation and maintenance of
the Agogo FPSO with Azule Energy, a 50/50 joint venture between BP and Eni, Angola’s largest
independent oil and gas producer, in February 2023. The contract has a firm operation period
of 15 years, with additional optional periods of up to 5 years and a total contract value of up to
approximately USD 5.7 billion. The Agogo FPSO will have a production capacity of 120,000
barrels of oil per day. Once construction is completed, the Agogo FPSO will be deployed to the
Agogo Integrated West Hub Development Project located in the West Hub of Block 15/06
offshore Angola.
The Agogo FPSO is designed with a comprehensive suite of carbon emission reduction
technologies, including the first-ever carbon capture technology onboard an FPSO. With an
estimated reduction of carbon emissions of 27% compared to a conventional design, the Agogo
FPSO also incorporates other technologies to reduce emissions including closed flare system,
hydrocarbon blanketing, combined cycle technology, automated process controls and all
electric drives systems. These features are integral to Yinson Production’s transition towards
achieving carbon neutral by 2030 and net zero by 2050.
Commenting on the successful closing of the financing, Yinson Production’s Chief Financial
Officer, Markus Wenker said, “This transaction is a significant milestone for Yinson Production.
It not only is our single largest financing to date, but the commercial multi-tranche structure
– the first of its kind in the industry – significantly increases the efficiency of the financing
compared to traditional structures, whilst diversifying the funding base by combining different
lender groups in a single transaction. We thank all our lenders for their trust in us and support
in passionately delivering this powerful financing solution for the Agogo FPSO.
