Enauta gets green light for Atlanta’s full development system and inks FPSO deal with Yinson

All systems go for full development of Enauta’s Brazillian field including FPSO deal with Yinson

Brazilian oil and gas company Enauta has confirmed the approval of the Full Development System (FDS) for the Atlanta field – located offshore Brazil – and inked a firm contract with Malaysia’s Yinson for the provision, operation and maintenance of a floating, production, storage and offloading (FPSO) vessel, which will be used for this field.

FPSO OSX-2; Courtesy of Yinson

Enauta informed on Tuesday that the Atlanta field’s FDS had been approved. The project has the capacity to produce 50,000 barrels of oil and process 140,000 barrels of water per day. The start-up is expected by mid-2024, initially with six wells. As this field has an active aquifer that does not require water or gas injection, Enauta believes this makes the project more solid.

Décio Oddone, Enauta’s CEO, remarked: “The implementation of Atlanta’s Full Field Development System will significantly increase production and the company’s resilience. Due to points learnt in the Early Production System, the FFD relies on efficient technologies that reduce costs and greenhouse gas emissions. We have developed a competitive project for energy transition, capable of providing an attractive return for our shareholders.”

Enauta also confirmed that agreements were signed with subsidiaries of Yinson for the conversion of an existing production unit for the FPSO to be used for Atlanta’s Full Field Development System, under the same terms as specified within the Letter of Intent (LoI) from December 2021.

The Atlanta field is currently producing through an Early Production System (EPS) – comprising three wells connected to the FPSO Petrojarl I. To remind, Enauta signed agreements with Altera in January 2022 to extend the charter, operation, and maintenance of this FPSO for an additional duration of up to two years.

FPSO Petrojarl I; Source: Enauta

During the same month, the company entered into an agreement for the purchase of FPSO OSX-2 for the Definitive System (DS) of the Atlanta field and the purchase deal was closed earlier in February. Enauta explains that the approved investment for the full development of the field is $1.2 billion, including the $100 million to be injected after production starts and $500 million, referring to the production unit.

According to the company, if Yinson exercises the vessel purchase option, a 15-year chartering agreement would take effect linked to financing for the same period, which would decrease the project’s investment by $100 million.

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Enauta intends to sign other agreements necessary to conclude the FDS over the next few days. Located in the Santos Basin, the Atlanta field is operated by Enauta Energia, a wholly-owned subsidiary of Enauta, which also has a 100 per cent interest in this asset.

In a separate statement on Tuesday, Yinson confirmed the contract and added that the engineering, procurement, construction and installation of the FPSO would be completed by the first half of 2024.

Flemming Grønnegaard, Yinson Chief Executive Officer Offshore Production, commented on the contract award: “Both Yinson and Enauta have been working closely since last year and we are making solid progress. We believe that our close working relationship with Enauta will help us move a step closer toward Yinson’s zero-emission FPSO concept of the future and our goal of achieving net-zero by 2050.”

It is worth noting that the Atlanta field’s FPSO will be Yinson’s third project award in Brazil, with the earlier two awarded assets on track for completion in 2023 and 2024, respectively, bringing the group’s total fleet to nine floating assets.

Lim Chern Yuan, Yinson Group Chief Executive Officer, commented, “Brazil awarded majority of the FPSO contracts in 2021 and we expect it will continue to be the dominant FPSO market going forward.”