Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on April 27, 2017

KUALA LUMPUR: Yinson Holdings Bhd has bagged a US$1 billion (RM4.4 billion) contract from Spanish operator Repsol SA to supply and maintain a floating production storage and offloading (FPSO) facility for the Ca Rong Do oil and gas field located in Block 07/03, off Vietnam.

In a filing with Bursa Malaysia yesterday, Yinson said its indirect wholly-owned unit Yinson Clover Ltd (YCL) has signed a contract with Repsol’s wholly-owned subsidiary Talisman Vietnam 07/03 BV (TLV) for the project. This follows the receipt of a letter of intent from TLV in January this year.

On the same day, YCL also signed a novation agreement with TLV and PetroVietnam Technical Services Corp (PTSC) for the novation of all rights and liabilities under the contract to PTSC.

TLV is the operator of the Ca Rong Do field. The other owners of the Ca Rong Do field are PetroVietnam Oil Corp, PetroVietnam Exploration Production Corp, Mubadala Petroleum LLC and Pan Pacific Petroleum NL.

Yinson said the latest contract is for a period of 10 years, with an option to renew up to five years. The estimated total aggregate value of the bareboat charter is US$1 billion for the entire 15-year charter inclusive of all five yearly extension options.

Both PTSC and YCL will subsequently form a joint-venture (JV) company to be held 51% by PTSC and 49% by YCL and upon incorporation, the JV company will enter into a bareboat charter contract with PTSC for the bareboat scope of work under the contract.

Yinson said further details of the JV will be announced in due course.

“Based on Yinson’s current track record, we will ensure a successful execution of the bareboat scope of work under the contract and expect a positive contribution to the group’s bottom line starting from the financial year ending Jan 31, 2020,” said Yinson group executive chairman Lim Han Weng in a separate statement yesterday.

Currently, Yinson is the sixth largest FPSO company in the global FPSO market.

Yinson shares closed up two sen or 0.63% at RM3.17 yesterday, bringing a market capitalisation of RM3.45 billion.
 

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