Yinson, through its subsidiary Yinson Acacia Ltd, through its subsidiary Yinson Acacia Ltd, has entered into an exclusivity agreement with bp Exploration (Angola) Limited (“bp”), as the operator of the Block 31 Contractor Group (the “Agreement”) for the reservation of FPSO Nganhurra, a floating, production storage and offloading (“FPSO”) vessel for use in bp’s proposed 10 well subsea Palas, Astrea and Juno Oil Fields (“PAJ Project”) based in Block 31, Angola.
Under the Agreement, Yinson will exclusively allocate FPSO Nganhurra to bp for the PAJ Project until 31 December 2022 with an option for bp to extend until 30 June 2023 whilst the parties negotiate a contract to convert, operate, maintain and lease the FPSO for the PAJ project (the “Lease and Operate Contract”). The Lease and Operate Contract, which is anticipated to include a 10-year fixed term, is expected to be executed by the end of 2024 subsequent to bp reaching final investment decision.
Yinson holds an exclusive purchase option for FPSO Nganhurra until 30 June 2023 with its owners, Woodside Energy and Mitsui E&P Australia Pty Ltd, with an option for Yinson to extend such exclusive purchase option until 31 December 2023.
Yinson Production Chief Executive Officer Flemming Grønnegaard commented, “This Agreement emphasises Yinson’s position as the preferred contractor in executing FPSO redeployment projects, which have significant capex and schedule advantages, for established oil & gas players such as bp. We have recently completed two successful redeployment projects, which are FPSO Abigail-Joseph and FPSO Helang, and the Group is currently engaged in a redeployment delivery for FPSO Atlanta. We are confident that our track record, technical knowledge and experience in this industry will support and fulfil bp’s business needs.”
FPSO Nganhurra has a production capacity of 100,000 barrels of oil per day and was built by Samsung in 2006. The FPSO, which operated at the Enfield field in Australia until autumn 2018, is currently laid up outside Labuan, Malaysia.