(OE) Malaysian FPSO specialist Yinson said Tuesday it had signed firm contracts with the Brazilian oil company Enauta for the provision, operation, and maintenance of an FPSO in the Atlanta Field located in the Santos Basin, offshore Brazil.
This follows letters of intent between two firms signed in December 2021.
Enauta has been producing oil from the field using the FPSO Petrojarl I as an Early Production System, and has been looking to deploy another FPSO at the field for full-field development. This contract with Yinson is for the “Definitive System” of the Atlanta field.
According to World Energy Reports, OSX 2 FPSO is currently in storage in Sout East Asia.
“This FPSO was completed in 2013 and went from the shipyard to storage site when the field operator (OGX) decided to not deploy the production unit,” World Energy Reports said in its recent FPS report.
Yinson said Tuesday that the engineering, procurement, construction, and installation of the FPSO are expected to be completed by the first half of 2024.
Before the completion of the construction of the FPSO, Yinson has the discretion to exercise the call option to acquire the asset-owning company of the project with a 15-year time-charter agreement and operation & maintenance agreement, whereby Enauta has a right to extend the agreements by a further 5 years.
The Project has an estimated aggregate value of USD505 million (including a 2-year operations and maintenance agreement), with a further increase to USD1,981 million (inclusive of 5 years extension period) should Yinson exercise the call option. The FPSO is one of Yinson’s three assets in Brazil, bringing the Group’s total fleet to nine floating assets.
Yinson Group Chief Executive Officer Lim Chern Yuan said: “Brazil awarded the majority of the FPSO contracts in 2021 and we expect it will continue to be the dominant FPSO market going forward. With our strong track record, Yinson aims to passionately deliver powerful solutions for Enauta. Our goal is to contribute positively towards the development of Brazil’s energy industry.”
Yinson Chief Executive Officer Offshore Production, Flemming Grønnegaard said: “Our steadfast commitment is towards pioneering low-emission designs from the get-go and this Project is no different. Both Yinson and Enauta have been working closely since last year and we are making solid progress. We believe that our close working relationship with Enauta will help us move a step closer toward Yinson’s zero-emission FPSO concept of the future and our goal of achieving net-zero by 2050.”
Brazil Energy Insight 
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