KUALA LUMPUR (Nov 15): Shares in Yinson Holdings Bhd rose 1.7% in the mid-morning on Monday (Nov 15) after it landed contracts worth an estimated US$5.2 billion (about RM21.63 billion) in Brazil.
At 10.45am on Monday, Yinson had risen 10 sen to RM5.98, valuing it at RM5.58 billion.
In a statement on the same day, Yinson said it had been awarded two letters of intent (LOIs) by Petróleo Brasileiro SA for the charter, operations and maintenance of Integrado Parque das Baleias (IPB FPSO), a floating, production, storage and offloading vessel in the North Campos Basin, offshore Brazil.
It said the LOIs were issued to its indirect wholly-owned unit Yinson Production Pte Ltd.
Following the LOIs, Yinson Bergenia Production BV, a Netherlands-incorporated indirect subsidiary of Yinson, will enter into a charter contract for the provision of the FPSO, while Brazil-incorporated wholly-owned subsidiary Yinson Bergenia Serviços de Operação Ltda will enter into a contract for the asset’s operations and maintenance.
Yinson said the contract period is 22.5 years from the date of the final acceptance.
IPB FPSO will be Yinson’s second vessel to operate in Brazil waters, with the first being FPSO Anna Nery, which was awarded to Yinson by Petrobras in October 2019.
Yinson said FPSO Anna Nery is currently under construction in Cosco Changxing, China, and is on track to be operational in 2023 in the Marlim Field, located in the north-eastern part of the Campos Basin.
Yinson group chief executive officer Lim Chern Yuan said that Yinson is well positioned to take on the IPB FPSO project as it had successfully strengthened its resources, capacity and expertise in Brazil over the past few years.