Yinson Production's FPSO JAK Contract Extended To 2036
KUALA LUMPUR, Oct 5 (Bernama) -- Yinson Holdings Bhd’s 79 per cent-owned subsidiary Yinson Production (West Africa) Pte. Ltd and its 49 per cent-owned Yinson Production (West Africa) Ltd have signed a contract amendment with Eni Ghana Exploration and Production Ltd (Eni).
The contract amendment involves a major Non-Associated Gas (NAG) modification project on the floating production, storage and offloading (FPSO) John Agyekum Kufuor (FPSO JAK) offshore Ghana.
In a Bursa Malaysia filing, the group said under the amendment, Yinson Production will undertake topside modification works to substantially expand the gas handling and processing capabilities of FPSO JAK, reinforcing domestic gas supply and supporting Ghana’s regional energy security.
"As part of the contract amendment, the firm lease period for FPSO JAK will be extended by four years and will now run until 2036. Following completion of the modification works, the contract amendment will generate an incremental day rate through 2036.
"This incremental day rate and the four-year extension to the contract increases Yinson Production’s firm contract backlog by approximately US$600 million," it said.
The NAG modification project, which is expected to be completed by the first quarter of 2028, will involve the fabrication and integration of two key topside modules, the MG2 module, equipped with two gas turbine-driven compressors, and the MC4 module, an auxiliary gas treatment module designed to manage higher gas volumes.
Yinson Production chief executive officer Flemming Guiducci Gronnegaard said the contract amendment marked an important milestone in its partnership with Eni and its joint venture partners, while supporting Ghana’s energy sector.
“By increasing gas export capacity, we are strengthening reliable offshore energy infrastructure, supporting Ghana’s domestic energy needs, and helping extend the field’s economic life,” he said.
The group said the amendment would have no effect on the share capital and shareholding structure of the company, but is expected to contribute positively to its earnings and net assets per share.
-- BERNAMA