Friday 24 May 2024
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KUALA LUMPUR (Oct 28): Yinson Holdings Bhd is said to be back in the race for Petrobras’ floating production, storage and offloading (FPSO) vessel contract in the Parque das Baleias field offshore Brazil.

Petrobras has reversed its decision in August to rule out Yinson, the only bidder for the project, and the two parties are close to signing an agreement for the charter, Upstream Online quoted sources as saying.

Petrobras had disqualified Yinson for the second time for “submitting an offer outside budget parameters”, the online portal reported. Yinson was also the sole bidder for the same project back in 2019, which Petrobras also cancelled.

Yinson had since revised its day rate to US$624,110 from US$645,750 previously, said Upstream Online. The latest offer values the deal at over US$5 billion, it reported.

If successful, it will be Yinson’s third floater contract in Brazil. It has begun construction of the Anna Nery FPSO for commissioning in the Marlim field in 2023, and is also in advanced negotiations with Enauta to supply the OSX-2 FPSO for deployment in the Atlanta field in the Santos basin, the portal added.

The FPSO for the Parque das Baleias field in the Campos basin is intended to have a processing capacity of 100,000 barrels per day of oil, and five million cubic metres per day of natural gas.

Commissioning is initially scheduled for 2024 for a period of 22 years and six months, although the timeline may be extended due to delays in awarding the contract.

Shares of Yinson closed five 5 sen or 0.86% higher at RM5.85, valuing the FPSO player at RM6.43 billion.

Edited ByS Kanagaraju
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