Malaysian floater operator Yinson has secured a short-term charter extension deal for its floating production storage and offloading (FPSO) vessels in Nigeria.
The deal will be for the provision of an FPSO for Eni, BP JV in Angola, called Azule Energy. Under the agreement with Azule Energy, Yinson will kick off preliminary activities for the provision, operation, and maintenance of a floating, production, storage, and offloading asset for the Agogo Integrated West Hub Development Project in Angola. Azule Energy, formed in August 2022, is Angola’s largest independent equity oil and gas producer.
Benefits
The term of the APA is 60 days with an approximate aggregate value of USD218 million (equivalent to approximately RM956 million). Yinson said the contract extension is expected to have a positive impact on its earnings and net assets per share.
The 1985-built Adoon has been fixed to Sinopec’s Addax Petroleum Development until January 16, 2023 in a deal worth around $3.4m. The unit has been operating in Block OML 123 offshore Nigeria. The vessel’s original contract was awarded for a firm eight-year period in October 2006, with an option to renew for up to eight years. The deal expired in October this year and the FPSO has since been chartered through several short-term agreements.
“The APA [Agreement for Preliminary Activities] outlines both parties’ interests in commencing preliminary work in order to meet the project schedule, while finalising firm contract(s) for the project,” Yinson said.