Yinson gets its hands on Brazil-bound FPSO

Yinson Production, a subsidiary of Kuala Lumpur-based energy infrastructure and technology company Yinson Holdings, has acquired a floating production storage and offloading (FPSO) vessel, which is destined for work at Enauta’s oil field offshore Brazil.

Enauta revealed Yinson’s intention to buy the FPSO Atlanta – through the purchase of all the shares of AFPS, which owns the vessel – in July 2023. The Brazilian player inked a contract with Yinson for the conversion of the existing production unit – purchased in February 2022 – so that the FPSO could be used for the Atlanta field’s Full Development System (FDS) under the same terms as specified within the Letter of Intent (LoI) from December 2021.

The Brazilian player said Yinson’s exercise of the option to buy the FPSO served to initiate the 15-year charter, operation, and maintenance agreements for the FPSO, with a possible five-year extension. This contract reflects a total value of $2 billion for 20 years counted from the vessel’s start of production.

According to Enauta, Yinson concluded the acquisition of all the shares of AFPS on Monday, 31 July 2023. Yinson’s acquisition of the FPSO Atlanta reflects a value of $465 million for AFPS, of which $86 million is paid in cash and EPCI deferred payments while $379 million is to be paid in a 15-year financing granted to Yinson.

“The closing of this transaction is an important milestone in de-risking the full development of the Atlanta field, confirming the near completion stage of the FPSO Atlanta, in-line with its schedule and budget. Additionally, the option exercise implies a reduction in Enauta’s net investment in the platform through the completion of approximately $100 million,” explained the Brazilian oil and gas player.

Back in May 2022, Yinson hired Drydocks World Dubai for the conversion, life extension services, and refurbishment of the FPSO Atlanta. The upgraded FPSO is expected to be delivered in the third quarter of 2023 to Enauta. After the conversion, the FPSO will be operated under ABS Class and it will be deployed at the Atlanta field.

This FPSO is anticipated to be fully operational by mid-2024 with six production wells. The FPSO Atlanta has the capacity to process 50,000 barrels of oil per day, 140,000 barrels of water per day, 20 MW of power generation, and 1.6 million barrels of oil in inventory capacity.

The Atlanta field has been producing since 2018 through an Early Production System (EPS), encompassing three wells connected to the FPSO Petrojarl I. Following recent recertification, this FPSO is expected to continue operating on the field until the entry of the Full Development System in 2024 with six wells, reaching ten wells in 2029. 

Located in block BS-4 in the Santos Basin, at a 1,500-metre water depth, the Atlanta field is operated by Enauta Energia, a wholly-owned subsidiary of the company, which also has a 100 per cent interest in this asset.