Global FPSO provider Yinson Holdings Berhad  said its wholly-owned unit has been awarded a US$578 million (RM2.357 billion) contract from JX Nippon Oil & Gas Exploration (M) Ltd.

According to a stock exchange filing from the Malaysian floating, production, storage and offloading (FPSO & FSO) service provider, the scope of the contract is to undertake O&M works for the Nippon FPSO facility.

The group said Yinson Energy Sdn Bhd, as the exclusive agent of Yinson Production AS, an indirect unit of the group, had accepted the letter of award on Feb 12, 2019.
 
“The tenure of the contract is effective from Feb 12, 2019 and shall remain in full force until termination of the contract for the provision of engineering, procurement, construction, installation & commissioning and leasing for the Layang FSPO facilities (charter contract). The charter contract is for a firm period of eight years and comes with options for 10 extension periods of one year each,” Yinson said.

The group said the O&M contract would not have any effect on the share capital and shareholding structure of the company. It is, however, expected to contribute positively to the earnings and net assets per share of the group for the financial year ending Jan 31, 2020 onwards until the termination of the charter contract.

The value of the O&M contract is based on the assumption that all extension options would be fully exercised.