Photo: FPSO Atlanta (OSX-2); Courtesy of Yinson

Yinson taps UAE player for FPSO upgrade work

The UAE-headquartered marine and offshore services provider Drydocks World Dubai, a part of DP World, has inked a deal with Malaysia’s FPSO operator Yinson to upgrade a floating, production, storage, and offloading (FPSO) vessel, which will operate for Enauta offshore Brazil.

Drydocks World revealed on Tuesday that it has signed a contract with Yinson to upgrade, refurbish, and convert an FPSO vessel, which will be delivered to Enauta following the completion of this 18-month project.

Capt. Rado Antolovic, PhD, CEO of Drydocks World, remarked: “Our expertise in refurbishment, conversion and upgrading FPSO vessels allows us to support Yinson Production in its commitment to improving global access to stable energy sources. We are pleased to enter a new partnership with Yinson and pave the way for a long-term business relationship.”

Contract signing; Source: Drydocks World
Contract signing; Source: Drydocks World

The UAE player’s deal with Yinson covers conversion and life extension services, as well as refurbishment for the FPSO Atlanta at Drydocks World-Dubai, while the upgraded FPSO is expected to be delivered in the third quarter of 2023 to Enauta at the Atlanta field off Brazil.

Located in the Santos Basin, 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. The field has been producing since 2018 through an Early Production System (EPS) – comprising three wells connected to the FPSO Petrojarl I.

However, Enauta entered into an agreement for the purchase of FPSO OSX-2 for the Definitive System (DS) of the Atlanta field in January 2022, and this purchase deal was closed in February. The Brazilian oil and gas player also inked a firm contract with Malaysia’s Yinson for the conversion of an existing production unit for the FPSO to be used for Atlanta’s Full Development System (FDS) – approved in February 2022 – under the same terms as specified within the Letter of Intent (LoI) from December 2021.

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The latest update on the developments related to this FPSO project indicates that it is anticipated to be fully operational by 2024 and support Yinson’s goal of producing up to 50,000 barrels of oil per day from the field. According to Drydocks World, FPSO vessels are vital to offshore oil operations, receiving crude oil and other liquids from subsea reservoirs and separating it into natural gas and oil with processing facilities onboard.

David Hamilton, Project Manager, Yinson Production, commented: “The competitive bidding process for this project was rigorous. Selecting Drydocks World outlines the importance of finding a partner with capabilities in upgrading and enhancing FPSO vessels. We look forward to delivering the Atlanta FPSO to Enauta in 2023 and reaffirming our commitment to making energy stable and affordable across the world.”

Furthermore, the technical scope of work for this project at the Drydocks World-Dubai shipyard includes production engineering, procurement of bulk material, construction as well as support for onshore commissioning. In addition, the redeployment scope of this project covers steel renewal, piping refurbishment, tank coating, and refurbishment of equipment, along with the upgrade of this FPSO.

Drydocks World explained that this FPSO project will entail life extension and installation of new equipment in order to utilize 100 per cent of produced gas and minimise greenhouse gas emissions.