Yinson Awarded Two Letters of Intent
Wednesday 16 October 2019
1. INTRODUCTION
The Board of Directors of Yinson announced that, on 11 October 2019, Yinson Production Pte Ltd (“YPPL”), an indirect wholly owned subsidiary of the Company, has been awarded two Letters of Intent by Petróleo Brasileiro S.A. (“Petrobras”) for, respectively, the provision of:
(a) a floating production storage and offloading facility (“Marlim 2 FPSO”) to the Marlim Field located offshore Brazil in the north-eastern part of the Campos Basin; and
(b) operation and maintenance services during the charter phase of Marlim 2 FPSO.
Following the LOIs, Yinson Boronia Production B.V. (“YBP”), an indirect subsidiary of the Company incorporated in the Netherlands, will enter into a charter contract with Petrobras for the provision of Marlim 2 FPSO (“Charter Contract”) and Yinson Boronia Serviços de Operação Ltda, a subsidiary of YBP incorporated in Brazil, will enter into a service contract with Petrobras for the provision of operation and maintenance services of Marlim 2 FPSO (“Service Contract”).
The LOIs represent Petrobras’ formal agreement to the final proposals submitted by YPPL and constitute binding documents between the parties pending the execution of the Contracts.
2. SALIENT TERMS OF THE CONTRACTS
A summary of the salient terms of the Contracts is as follow:
(a) The term of the charter is 9,125 days or approximately 25 years under the Contracts from the date of final acceptance of Marlim 2 FPSO.
(b) The estimated aggregate value of the Contracts is approximately equivalent to USD5.4 billion (equivalent to approximately RM22.7 billion), subject to the terms and condition of the Contracts.
(c) Marlim 2 FPSO is expected to commence operation by the first quarter of 2023.
More information here.