Friday 01 Dec 2023
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KUALA LUMPUR (Feb 28): Yinson Holdings Bhd has inked a firm contract with Eni Angola SpA, a wholly owned subsidiary of Azule Energy, to supply a floating, production, storage and offloading asset for the Agogo Integrated West Hub Development Project in Angola (FPSO Agogo).

In a statement on Tuesday (Feb 28), the company said its unit Yinson Production (YP) had signed the deal with Azule, which is Angola’s largest independent oil and gas producer as well as a 50:50 joint venture between BP plc and Eni SpA.

Yinson said the contract has an estimated aggregate value of approximately US$5.3 billion and a firm period of 15 years from the date of the final acceptance, with the option to extend for a further five years.

It said FPSO Agogo is expected to commence operations in the fourth quarter of 2025.

The signing of the firm contract follows the signing of an agreement for preliminary activities on Dec 2, 2022 between the parties.

FPSO Agogo will be YP’s first offshore production project in Angola and marks YP’s eighth FPSO project in the West African region. It will increase YP’s total order book to approximately US$22.4 billion.

Yinson group chief executive Lim Chern Yuan said the contract award is a testament of YP’s standing as a reliable FPSO contractor.

“Our long-standing relationship with Eni, one of the JV partners in Azule alongside BP, started with the contract award for FPSO John Agyekum Kufuor back in 2017, which we delivered three months ahead of schedule.

“We have also maintained an excellent safety and uptime track record which paved the way for our involvement in the FPSO Agogo project. Together with our client, we hope to further contribute to the production of energy in this region,” he said.

Meanwhile, YP chief executive officer Flemming Grønnegaard said the company had been operating in the African region since 1995, and it was a vital market.

“We are committed to delivering value-added results for our client, whilst implementing a low emission design that helps to mitigate climate change.

“Together, we hope to pioneer some sustainable technologies such as carbon capture that we believe can pave the way for the decarbonisation of the FPSO industry,” he said.

At the midday break on Tuesday, Yinson slipped 0.37% or one sen to RM2.69 with 7.57 million shares traded.

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