Friday 29 Mar 2024
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KUALA LUMPUR (April 28): Japan’s Sumitomo Corp is taking up a 25% stake in Yinson Holdings Bhd’s unit that operates a floating production, storage and offloading (FPSO) vessel facility in Brazil.

The stake is valued at US$3.34 million (RM14.57 million), Yinson said in a stock exchange filing.

The group said its indirect subsidiary, Yinson Acadia Ltd, and Sumitomo’s wholly-owned unit, Japan Offshore Facility Investment Pte Ltd (JOFI), entered into an agreement today to facilitate the stake acquisition.

The deal will result in JOFI owning 25% of Yinson Boronia Consortium Pte Ltd, which controls Yinson Boronia Production B.V (YBP) and Yinson Boronia Serviços de Operação Ltd (YBS).

YBP and YBS had last month entered into a time charter contract and service contract with Brazilian national oil company Petrobas for the provision of the Marlim 2 FPSO.

Marlim 2 would be deployed to the Marlim field located offshore in Brazilian waters, said Yinson.

The value of these contracts stands at US$5.4 billion, with a tenure of 25 years from the date of final acceptance of the charter contract, added Yinson.

The group said the deal would allow Yinson and Sumitomo to establish a collaboration based on their respective experience and strengths — particularly as the Marlim 2 FPSO is Yinson’s largest project to date and first vessel to operate in Brazilian waters.

“Sumitomo’s participation through JOFI will alleviate some of the funding requirements and project-related risks (in exchange for the project returns) that would otherwise be required of Yinson if the project were to be wholly-owned by Yinson,” said Yinson.

Shares in Yinson closed 0.79% or four sen lower at RM5.01 per share, giving the group a market capitalisation of RM5.49 billion.

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