Yinson Ghana joint venture gets LOI to provide FPSO

KUALA LUMPUR (Feb 21): Yinson Holdings Bhd’s African joint venture entity has received a letter of intent (LOI) from Aker Energy Ghana Ltd for the provision of a floating production, storage and offloading vessel (FPSO) at the deepwater Tano/Cape Three Points are offshore Ghana.

In a bourse filing today, Yinson said Aker Energy had issued the LOI to Yinson Production West Africa Ltd, Yinson Gazania Production Ltd (YGPL) and Yinson Gazania Operations Ltd (YGOL) for a bareboat charter party agreement as well as an operation and maintenance agreement.

Yinson said the LOI had been accepted by Yinson West Africa, YGPL and YGOL on Feb 20.

The company said the primary term of the contracts is for a period of 10 years, and that Aker Energy may extend it for an additional one year, up to fice times, for a maximum of 15 years or as other agreed by the parties.

Yinson said Aker Energy owns 50% of the rights to the Tano/Cape Three Points field with the remainder being held by Lukoil Overseas Ghana Tano Limited (38%), Ghana National Petroleum Corporation (10%) and Fueltrade Limited (2%).

Yinson said the contracts are expected to contribute positively to its earnings.

Trading in Yinson has been halted from 9am today and will resume at 10am. The stock was last traded at RM7.24 for a market capitalisation of RM7.93 billion.