Yinson, First E&P in Nigeria FPSO talks

Malaysia’s FPSO specialist Yinson is in talks for a potential supply of an FPSO for a project in Nigeria.

Illustration only: An FPSO offshore Nigeria. Source: Wikimedia under Public Domain license

Yinson said on Thursday it had entered into a Heads of Terms with its indirect subsidiary Yinson Operations & Production West Africa and the Nigerian company First E&P.

The companies will engage in exclusive negotiations for the potential supply and charter of a floating production storage and offloading unit to process hydrocarbons from the Anyala & Madu fields under Oil Mining Leases 83 & 85, offshore Nigeria.

According to Yinson, First E&P, established in 2011, owns 40% of the rights to the fields with the remainder being held by Nigerian National Petroleum Corporation (“NNPC”).

Yinson said that, subject to negotiations, it would supply an FPSO for the initial term of the bareboat charter of seven years. First E&P would have an option to extend the term for another eight years.

Yinson expects to seal the deal by June 30, or at a later date mutually agreed by the parties.