• Tuesday, July 23, 2024
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$2.54 billion FPSO contract for Ghana’s OCTP Block awarded


Malaysia’s Yinson Holdings Berhad (Yinson, the Group), announced it has been awarded a contract for the chartering, operation and maintenance of a floating production storage and off-loading (FPSO) vessel for deployment offshore Ghana by Eni Ghana Exploration & Production Limited via the consortium of Yinson’s wholly-owned subsidiary and joint venture company, Yinson Production (West Africa) (YPWA) and Yinson Production West Africa Limited (YPWAL). YPWA is the FPSO chartering company while YPWAL is the company engaged in the operation and maintenance of the FPSO.

The FPSO Contract is for a firm charter period of 15 years with five yearly extension options exercisable by Eni Ghana. The FPSO will process oil and gas from the Offshore Cape Three Points (OCTP) block, located in the Tano Basin, approximately 60 kilometers off the coast of Ghana.

Lim Chern Yuan, group chief executive said: “This Contract is a game-changer for Yinson. This is by far our largest contract to date, brings us into the top tier of FPSO players, and demonstrates the excellent strategic value of our acquisition of Fred. Olsen Production in 2013. Eni Ghana have shown their confidence in Yinson’s ability to execute this project by awarding this Contract to Yinson and we are fully committed to working with Eni Ghana and its partners to ensure that this project is a success, and that Ghana will have a reliable supply of gas for its electricity generation needs.”

Eirik Barclay, chief executive of the FPSO division of Yinson, added: “We have been working with Eni on the Front-End Engineering Design competition for this project for over a year and are therefore confident that we will be able to deliver the FPSO in accordance with the schedule, achieving first oil by mid-2017. By collaborating closely with our local partner Oil Marine Agencies Ghana Ltd. (OMA), we will also ensure that we not only achieve the required local content requirements of the project but also meet the expectations of the project partners and local authorities in supporting the development of the Ghanaian oil and gas industry”.

The FPSO will be based on the conversion of the recently acquired VLCC tanker, the Yinson Genesis. The FPSO will have an available storage capacity of 1.7 million barrels, with an oil processing capacity of 58,000 barrels per day, a gas injection capacity of 150 million standard cubic feet per day (MMscf/d) and a maximum future gas-export capacity of 210 MMscf/d. The FPSO will be spread-moored in an average water depth of 3,281 feet (1,000 meters) with a total topsides weight of almost 15,000 tons.

The estimated aggregate value of the Contract (excluding reimbursable scope and cost escalation) for the firm charter period is approximately $2.54 billion with an estimated total aggregate value of up to $3.26 billion, should Eni Ghana exercises all five yearly extension options. The Contract will contribute positively to the Group’s earnings for the financial year ending Jan. 31, 2018 and for the financial periods thereafter for the duration for the Contract.