Yinson nets FPSO operation and maintenance job worth up to $578 million

Malaysian FPSO supplier Yinson has through its subsidiary Yinson Energy Sdn Bhd, won a letter of award from JX Nippon to provide operation and maintenance services for Layang FPSO.

The tenure of the O&M contract is effective from February 12 and will remain in full force until termination of the contract for the provision of EPCIC and leasing of the Layang FPSO which Yinson and Nippon entered into last year.

This means the O&M deal will remain active for a firm period of eight years – the duration of FPSO charter – with options for ten extension periods of one year each.

The estimated aggregate value of the O&M deal, assuming the extension options are fully exercised, is approximately $578 million.

The scope of the contract is to perform operation and maintenance works for the Nippon FPSO facilities which is expected to begin operations at the Layang field by the fourth quarter of 2019.

It is worth reminding that Yinson decided to take over the provision and leasing deal for the Layang FPSO with Nippon from THHE in late April 2018.

Malaysia’s THHE had in 2014 won a contract to build, install, and lease an FPSO for oil production at JX Nippon’s Layang field, offshore Sarawak, but failed to deliver the vessel by the agreed date – June 2016 – due to liquidity issues, so it in late 2017 opted to novate the contract to Yinson.

The estimated aggregate value of the charter contract, assuming all extension options are exercised, is approximately $860 million.

Offshore Energy Today Staff