K Line Enters FPSO Partnership off Ghana
Japan’s Kawasaki Kisen Kaisha (K Line) has entered into an agreement with three companies to participate in the owning and chartering business for a oil and gas floating production, storage and offloading (FPSO) unit off the coast of Ghana.
Together with its compatriots, Sumitomo Corporation, JGC Corporation and Development Bank of Japan, the shipping company agreed in principle on the FPSO, named John Agyekum Kufuor, which is run by the Malaysian offshore production services provider Yinson Holdings Berhad and its group of companies.
With a crude oil production capacity of 58,000 barrels/day and a gas production capacity of 210 million square feet/day, the FPSO can hold up to 1.4 million barrels of crude.
After commencement of the definitive agreement, the four partners will acquire, through a joint venture, 26% of the shares of Yinson Production (West Africa).
Yinson Production recently entered into a has concluded a 15-year long-term FPSO chartering agreement with Eni Ghana Exploration & Production, an affiliate of the Italian oil company Eni SPA, and started oil production at Offshore Cape Three Point Block (OCTP) located some 60 kilometers south west of Ghana in May 2017.
The partners informed that the domestic supply of natural gas from the FPSO is expected to commence in Ghana by mid-2018. Through the project, the four partners will contribute to stable oil and natural gas supplies in Ghana, thus solving natural gas and electricity shortages in the country.