Malaysia’s Yinson in strategic review of FPSO business with IPO as one option

Malaysian FPSO operator Yinson has decided to review its business with an intention to unlock the value of its offshore production segment, exploring options like IPO or strategic partnerships.

Yinson revealed on Tuesday that, as part of the group’s medium-to-long-term strategy to ensure that it is prepared and fit for future growth, the company will be undertaking a strategic review exercise of the FPSO business segment to explore and assess options available to the group.

As explained by Yinson, the strategic review aims to explore a broad range of options to unlock and maximise shareholder value and, at the same time, strengthen the FPSO business. It would also position Yinson to execute its long-term sustainability strategy towards operating in a low-carbon, climate-resilient future.

These options may include an initial public offering (IPO) or strategic partnership opportunities for the FPSO business segment. However, Yinson noted that there is no assurance that the strategic review will result in any transaction or that any definitive or binding agreement will be reached.

Yinson said it will make further announcements as appropriate.

When it comes to its FPSO business, Yinson signed two contracts for the provision of an FPSO and services in less than a month. Early in February, Yinson agreed to provide an FPSO to Brazil’s Petrobras for the Parque das Baleias Integrated Project. The estimated aggregate value of the contracts is $5.2 billion and the FPSO is expected to start operation by the fourth quarter of 2024.

Weeks later, Yinson signed an FPSO contract with another Brazilian company, Enauta. Under the contract, Yinson will provide Enauta with the FPSO for the Atlanta field’s Full Development System.