Yinson awarded Brazil FPSO Marlim project

Yinson Holdings has been awarded two Letters of Intent by Petrobras for the charter, operations and maintenance of FPSO Marlim 2, for the Marlim revitalization project in Brazil.

One of Yinson's FPSO - the recently renamed Abigail Joseph

One of Yinson's FPSO - the recently renamed Abigail Joseph

Highlights

  • Yinson awarded 2 LOIs by Petrobras
  • Value of contracts are USD5.4bn
  • Duration of contract is 25yrs from date of final acceptance
  • FPSO Marlim 2 will be Yinson’s first vessel to operate in Brazil

YINSON HOLDINGS BERHAD (“Yinson” or the “Group”), has been awarded two Letters of Intent (collectively “LOIs”) by Petróleo Brasileiro S.A. (“Petrobras”) for the charter, operations and maintenance of FPSO Marlim 2, a floating, production, storage and offloading (FPSO) vessel for the Marlim revitalization project from Petróleo Brasileiro S.A. (“Petrobras”) in Brazil.

The LOIs were issued to Yinson Production Pte Ltd (“YPPL”), an indirect wholly-owned subsidiary of the Yinson. Following the LOIs, the charter contract will be entered into by Yinson’s Netherlands-incorporated indirect subsidiary Yinson Boronia Production B.V (“YBP”), while the operation and maintenance (O&M) contract will be entered into by YBP’s Brazil-incorporated subsidiary Yinson Boronia Serviços de Operação Ltda.

The estimated aggregate value of the contracts is equivalent to USD5.4 billion. The contract period is for 25 years from the date of the final acceptance.

FPSO Marlim 2 will be Yinson’s first vessel to operate in Brazil waters, and is one of several bids in the region that the Group has entered into.

Yinson Group Chief Executive Officer Lim Chern Yuan said FPSO Marlim 2 would be Yinson’s largest project to date, and that the Group had been focusing on building their 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’s Chief Executive Officer Production Eirik Barclay added that much of the needed groundwork and preparations in order to swing into high gear upon project award has already been completed.

“The team is excited and ready to demonstrate that we are able to meet the expectations of our client and project partner in realizing this project. We are committed to giving our very best towards this project in order to contribute to the advancement of the energy industry in Brazil,” he said.

In March 2019, Yinson and Sumitomo Corporation announced their intention to collaborate on the Marlim revitalization project, in which Sumitomo would participate with an effective interest of at least 20% in the event of a successful bid by Yinson. The Shareholder Agreement pertaining to this collaboration is expected to be announced in due course.

Read the full press release.

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