Exclusive interview with Yinson Production: Deepwater plays setting the stage for ‘robust’ FPSO and FSO market dynamics

January 6, 2026, by Melisa Cavcic

With Brazil, West Africa, Southeast Asia, and Namibia at the heart of its expansion quest and its frontier push revolving around carbon capture and low-carbon moves, Malaysia’s Yinson Production, a subsidiary of Kuala Lumpur-based energy infrastructure and technology company Yinson, has set its cap on rolling out practical emissions-reduction solutions across its fleet of floating production, storage, and offloading (FPSO) units.

As it expects the FPSO market to stay resilient and thrive in 2026, the Malaysian giant will keep using its lease-and-operate model. During Offshore-Energy.biz’s interview with Jahn Atle Høgberg, Chief Operating Officer (COO) of Yinson Production, emphasized that the firm would be focused on operational excellence and disciplined execution in 2026.

Høgberg elaborated: “We are firmly in an operations-focused phase, concentrating on maintaining world-class safety performance and uptime across our fleet, while executing key projects such as FSO Block B and FSO Lạc Da Vang to the standards our clients expect.

“Beyond that, we remain selective in pursuing new opportunities that fit our lease-and-operate model, where long-term performance matters more than short-term delivery milestones. Our priorities are reliability, predictability, and disciplined growth.”

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While discussing the key growth regions for Yinson Production, the Malaysian heavyweight’s COO highlights Brazil as the one that will remain a core market, underpinned by deepwater developments and long-term FPSO demand.

Høgberg continued: “We also see continued relevance in West Africa, particularly where clients value proven operators with strong safety and uptime records. In Southeast Asia, energy security needs continue to support FPSO and FSO demand.

“In addition, we now have a foothold in Namibia, which we see as an emerging offshore market with long-term potential. As with all regions, our focus is on opportunities where our track record in delivery and operations creates clear value for clients.”

Chasing low-carbon frontiers

Therefore, the regional focus will be on Brazil as the core growth market, with West Africa continuing to be relevant for clients valuing safety and uptime, Southeast Asia driven by energy security needs, and Namibia emerging as a new offshore frontier.

Høgberg outlined: “For us, ‘frontier’ is not only about geography, but also about how the offshore energy ecosystem is evolving. In addition to technically complex offshore projects, we see frontier opportunities in new offshore- and carbon-related business areas, including carbon capture and storage.

“This is why we are growing our Low Carbon Ventures business — to apply our offshore execution, project management, and long-term operating expertise to adjacent areas where those capabilities are directly relevant. As always, we remain disciplined and selective, ensuring any expansion aligns with our risk framework and long-term operational strengths.”

As a result, the FPSO giant is set on expansion into carbon capture and storage (CCS) and other low-carbon ventures. To help curb greenhouse gas (GHG) emissions from FPSOs, the firm is going after practical solutions like combined-cycle power, closed flare systems, electrification, hydropower, and advanced monitoring systems.

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Høgberg underlined: “Our focus is on practical, deployable solutions that can be implemented today without compromising reliability. On new projects, we seek to integrate solutions similar to those implemented on our Agogo FPSO, including combined-cycle power generation, closed flare systems, hydrocarbon blanketing, all-electric drives with variable frequency drives on large machinery, hydropower generation, and advanced monitoring and control systems to optimize efficiency and reduce emissions.”

Yinson Production’s COO claims that the firm is continuing to implement energy-efficiency upgrades across power generation and processing systems, digital optimization and advanced monitoring to slash fuel consumption, targeted electrification where technically and operationally viable, and FPSO designs that remain integration-ready for future decarbonization technologies.

While contemplating the possibility of an all-electric FPSO powered solely by renewables, Høgberg underscored: “At this stage, it remains technically challenging and not our immediate focus. FPSOs require continuous, high-reliability power in remote offshore environments.

“Fully renewable solutions alone do not yet meet those operational requirements. Our priority is delivering safe, reliable assets while steadily reducing emissions intensity through proven technologies.”

The Malaysian titan is anticipating strong FPSO/FSO demand in 2026, thanks to deepwater projects and capital discipline. The firm’s predictions for the market dynamics up to 2050 indicate that offshore oil and gas will still have their slice of the energy mix cake, with FPSOs evolving further toward lower emission plays.

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Høgberg stated: “For 2026, we expect continued robust demand for FPSOs and FSOs, driven by deepwater developments, capital discipline among oil companies, and the need for reliable long-term production solutions.

“Looking toward 2050, offshore oil and gas is expected to remain part of the global energy mix. FPSOs will continue to play a role by providing efficient production with improving emissions performance, supported by technology, digitalization, and operational optimization.”

Yinson Production’s fleet consists of nine operating assets and two units under construction, resulting in $19.9 billion in contracted revenue backlog through 2050, including options. The Malaysian FPSO giant is working on its zero-emission FPSO concept, seen as the key to bringing the offshore production fleets’ emissions to net zero.

Høgberg concluded: “Our proven and effective lease-and-operate model fundamentally aligns our interests with those of our clients. Because we operate the assets we deliver, our focus is on long-term uptime, safety, and performance, not just project completion.

“This alignment, combined with a proven delivery and operating track record, is what allows clients to rely on us with confidence as they plan for the years ahead.”