KUALA LUMPUR: Yinson Holdings Bhd has signed firm contracts with Enauta Energia S.A for the provision, operation and maintenance of a floating, production, storage and offloading (FPSO) asset in the Atlanta Field located in the Santos Basin, offshore Brazil.

       Yinson said following the letter of intent dated Dec 17, 2021 agreements were entered into through indirect wholly owned subsidiaries, Yinson Production Offshore Pte Ltd, Yinson Production EPC Pte Ltd, Yinson Bouvardia Holdings Pte Ltd and Yinson Bouvardia Servi？os de Opera？？o Ltda.

       The engineering, procurement, construction and installation of the FPSO are expected to be completed by the first half of 2024.

       Prior to 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 and maintenance agreement, whereby Enauta has a right to extend the agreements by a further five years.

       “The project has an estimated aggregate value of US$505mil (including a 2-year operations and maintenance agreement), with a further increase to US$1,981mil (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 said.

       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,” Lim said.