KUALA LUMPUR (March 1): Yinson Holdings Bhd is teaming up with Japan's Sumitomo Corp to jointly supply a floating, production, storage and offloading unit (FPSO) for the Marlim oil field in Brazil. 

In a statement today, Yinson said it has entered into a letter of agreement (LoA) with Sumitomo, which documents the intention of the parties to participate in a potential joint venture for the proposed project.

"The LoA confirms Sumitomo’s intention to participate in the Marlim project, with an effective interest of at least 20% in the event of a successful bid by Yinson," it added.

The LoA follows the signing of a memorandum of understanding between the two parties on April 20 last year to jointly pursue and collaborate in the leasing and operation of FPSO and FSO projects worldwide.

"Under this collaboration, Yinson commits to overseeing and conducting the overall project implementation, while Sumitomo commits to seeking competitive logistics and financing on top of enhancing the project execution," said Yinson.

“We are confident that the collaboration with Sumitomo Corporation across different working levels will improve our strength in terms of bidding strategy, financing, and project execution, thereby enhancing our competitiveness for prospective projects across the globe,” Yinson group chairman Lim Han Weng said.

At 4.38pm, Yinson shares were up 10 sen or 2.3% at RM 4.45, with 3.29 million shares done, giving a market capitalisation of RM4.87 billion.