PETALING JAYA: Yinson Holdings Bhd’s indirect wholly owned subsidiaries have inked contracts with Enauta Energia SA 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.

       In a filing with Bursa Malaysia, the group said its indirect wholly owned subsidiaries, namely, Yinson Production Offshore Pte Ltd, Yinson Production EPC Pte Ltd, Yinson Bouvardia Holdings Pte Ltd and Yinson Bouvardia Servi？os de Opera？？o Ltda, had entered into the contracts with Enauta on Feb 21.

       The contracts signed are in accordance to the binding letter of intent (LoI) inked on Dec 17 last year.

       Prior to the LoI, both Yinson and Enauta had signed a binding memorandum of understanding on Aug 27 last year to engage in exclusive negotiations for the potential supply and charter of the FPSO.

       Moving forward, Yinson expects the engineering, procurement, construction and installation of the FPSO to be completed by the first half of 2024.

       Should Yinson exercise the call option under the contracts signed, the group said this would be followed by the commencement of either a two-year operation and maintenance services contract, or a 15-year time charter agreement and an operation and maintenance agreement of the same duration.

       “The call option is exercisable at Yinson’s discretion, which will further increase the contract value up to US$1.98bil or equivalent to RM8.29bil (inclusive of an optional five-year extension period).

       “If Yinson chooses to exercise the call option, the acquisition of the asset-owning company with the execution of time charter agreement will be concluded prior to the completion of the FPSO,” explained Yinson.