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Yinson bags USD 2.54bn FPSO contract with Eni at Ghana's OCTP offshore development

28th January 2015

A consortium of Yinson Production (West Africa) Pte Ltd (YPWA) and Yinson Production West Africa Limited (YPWAL) have been awarded a contract for the chartering, operation and maintenance of an FPSO facility by Eni Ghana at the Offshore Cape Three Points Block (OCTP), located in the Tano Basin approximately 60 kilometres off the coast of Ghana

A consortium of Yinson Production (West Africa) Pte Ltd (YPWA) and Yinson Production West Africa Limited (YPWAL) have been awarded a contract for the chartering, operation and maintenance of an FPSO facility by Eni Ghana at the Offshore Cape Three Points Block (OCTP), located in the Tano Basin approximately 60 kilometres off the coast of Ghana
The FPSO is expected to commence operations in the OCTP block in 2017

Pursuant to the Contract, YPWA is the FPSO chartering company while YPWAL is the company engaged in the operation and maintenance of the FPSO.

Yinson signed the contract with Eni on 27 January 2015 with immediate effect.

The contract is for a firm charter period of 15 years with five yearly extension options exercisable by the client.

The estimated aggregate value of the contract (excluding reimbursable and cost escalation) during the firm charter period is approximately up to USD 2.539bn and an estimated total aggregate value of up to USD 3.256bn if Eni Ghana exercises all five yearly extension options.

The FPSO is expected to commence operations in the OCTP block in 2017.

YPWA is an indirect wholly-owned subsidiary of Yinson Holdings, incorporated in Singapore on 5 May 2014, and is principally involved in the ship management services incidental to oil and gas extraction (excluding surveying).

YPWAL is a Ghanaian joint venture company of Yinson Production Pte. Ltd. (YPPL)(49 per cent) and Oil and Marine Agencies Ghana Ltd (OMA)(51 per cent).

YPPL is an indirect wholly-owned subsidiary of Yinson principally involved in the ship management services incidental to oil and gas extraction. OMA is an indigenous Ghanaian company, principally involved, among others, in the provision of offshore support services, logistics and freight forwarding, vessel husbandry and liner agency.

The OCTP block is operated by Eni Ghana (47.2 per cent) with other partners of the joint venture, Vitol Upstream Ghana Limited (37.8 per cent) and the Ghanaian state-owned Ghana National Petroleum Company (15 per cent) with the option for an additional 5 per cent.

Earlier this week the OCTP partners receives approval from the Ghanaian government to proceed with its offshore development plans.

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