Nigeria’s First Exploration & Petroleum Development Company Limited seals $901 million deal with Malaysia’s Yinson

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Yinson, Malaysian floating production, storage and offloading (FPSO) operator has entered into a multi-millionaire deal with First Exploration & Petroleum Development Company Limited (First E&P), a Nigerian oil and gas company, for an FPSO vessel to be deployed to Nigeria’s offshores.

The Malaysian firm agreed to the deal via its wholly-owned subsidiary, Yinson Nepeta Production Limited (YNPL) and indirect subsidiary Yinson Operations and Production West Africa Limited (YOPWAL).

Yinson and First E&P sealed a $901.79 million deal to execute the contract which is viewed as a strategic decision for a cost-effective solution.

According to the Offshore Engineer, the estimated aggregate value of the contract is based on the assumption that the extension options are fully exercised, comprising the bareboat charter contract of $617.09 million. The deal also includes the Operation and Maintenance (O&M) contract of $284.7 million (N87.36 billion). The FPSO is expected to commence operations at the Anyala and Madu fields by the fourth quarter of 2019.

The Group Chief Executive Officer of Yinson, Lim Chern Yuan said the group would be redeploying one of its existing vessels, FPSO Allan, to Anyala & Madu, and the vessel would be renamed FPSO Abigail-Joseph.

Yuan said “the redeployment of FPSO Allan is a strategic decision that has enabled us to bring forward the project schedule and at the same time delivering a more cost effective solution for our client”.

First E&P, which was established in 2011, said its mission is to be a deeply technical, commercial and entrepreneurial organisation, with full delivery capability across the entire upstream oil and gas value chain.

Yinson Holdings Berhad, an investment holding company, operates as a floating, production, storage, and offloading (FPSO) service provider. The company operates through Offshore & Marine and Other Operations segments. It provides vessels and marine related services.

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