More in business

Business

Thursday, 14 June 2018 | MYT 9:35 AM

Yinson in talks to supply FPSO to Nigerian oil firm

KUALA LUMPUR: Yinson Holdings Bhd plans to supply a floating production storage and offloading (FPSO) unit to Nigeria’s First Exploration & Petroleum Development Company Ltd (First E&P) to process hydrocarbons offshore the African nation.

Yinson said on Thursday its indirect unit had entered into a heads of terms with its associate Yinson Operations & Production West Africa Ltd and First E&P to negotiate the potential supply and charter of the FPSO.

The FPSO will process the hydrocarbons from the Anyala & Madu fields under Oil Mining Leases 83 & 85.

First E&P owns 40% of the rights to the fields with the remainder being held by Nigerian National Petroleum Corporation (NNPC).
 
Pursuant to the heads of terms, the companies plan to negotiate the terms for a bareboat charter and an operations and maintenance agreement.

Yinson said the initial term of the bareboat charter is expected to be for seven years; and First E&P may extend the term of the charter for another eight years in total.