Yinson to provide FPSO for Marlim project in Brazil

Malaysian FPSO provider Yinson has been awarded two letters of intent by Petrobras for the charter, operations, and maintenance of FPSO Marlim 2 for the Marlim revitalization project in Brazil.

Illustration / A Yinson supplied FPSO; Image source: Eni

The LOIs were issued to Yinson Production Pte Ltd (YPPL), an indirect wholly-owned subsidiary of the Yinson.

Following the LOIs, the charter contract will be entered into by Yinson’s Netherlands incorporated indirect subsidiary Yinson Boronia Production B.V (YBP), while the operation and maintenance (O&M) contract will be entered into by YBP’s Brazil-incorporated subsidiary Yinson Boronia Serviços de Operação Ltda.

Yinson said in a statement on Wednesday that the estimated aggregate value of the contracts was equivalent to $5.4 billion. The contract period is for 25 years from the date of the final acceptance.

FPSO Marlim 2 will be Yinson’s first vessel to operate in Brazil waters, and is one of several bids in the region that the company has entered into.

Yinson Group Chief Executive Officer Lim Chern Yuan said FPSO Marlim 2 would be Yinson’s largest project to date.

Yinson’s Chief Executive Officer Production Eirik Barclay added that much of the needed groundwork and preparations in order to swing into high gear upon project award has already been completed.

In March 2019, Yinson and Sumitomo Corporation announced their intention to collaborate on the Marlim revitalization project, in which Sumitomo would participate with an effective interest of at least 20% in the event of a successful bid by Yinson.

Yinson said it would announce the shareholder agreement pertaining to this collaboration in due course.

It is also worth mentioning that Japan’s MODEC has received a letter of intent for the supply, charter, and operations of an FPSO vessel for Marlim revitalization project from Petrobras. The Marlim 1 FPSO’s first oil production is planned for 2022.