Thursday, Sep 24, 2020
International Finance
Oil & Gas

Petrobras awards $5.4 bn service contracts to Malaysia’s Yinson

Yinson Petrobras
The contracts awarded by Petrobras are for a period of 25 years starting from the date of acceptance

Malaysia’s Yinson Holdings, one of the world’s leading Floating, Production, Storage and Offloading (FPSO) service providers, received two contracts worth $5.4 billion from Brazil’s state-owned oil giant Petrobras.

According to Yinson, the first contract from Petrobras is for floating production storage and floating facility to the Marlim field offshore Brazil in the north-eastern part of the Campos Basin. The second is for operation and maintenance.

Yinson’s vessel to Marlim will be its first in the Brazilian water. According to Yinson group CEO Lim Chern Yuan, this is the largest project received by Yinson till date. Yinson will focus on building its resources and improving capacity and expertise in order to successfully complete this project. The contracts are for a period of 25 years starting from the date of acceptance.

He told the media that, “This project further cements Yinson’s position as a global FPSO player, demonstrating the industry’s increasing confidence in our ability to deliver projects on time, and thereafter to maintain our excellent uptime and safety track record.”

In a securities filing, Petrobras revealed that Yinson’s Marlim 2 FPSO will have a processing capacity of 70,000 barrels per day and production will start in 2023.

Earlier in March this year, Yinson and Japan’s Sumitomo Group announced that they intend to work together on the Marlim revitalisation project, in which Sumitomo would participate with an effective interest of at least 20 percent in the event of a successful bid by Yinson.

Last month, Yinson also won a contract extension for its Lam Son FPSO for operations on the Lam Son field, offshore Vietnam. But during the same period, Yinson’s contract with PetroVietnam Technical Services was terminated due to a prolonged force majeure event.

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