Japanese company buys into Yinson’s Brazilian FPSO

Yinson Holdings Berhad has entered into an agreement with Japan's Kawasaki Kisen Kaisha (K Line) to sell a 10 per cent stake in a joint participation for the charter, operations and maintenance of FPSO Anna Nery, a FPSO vessel for the Marlim revitalisation project in Brazil.

K Line will US$49 million for a minority interest. Completion of the transaction is subject to final acceptance of the FPSO as well as the FPSO achieving stable operations which is expected to be met in 2023.

The agreement makes K Line the second strategic partner following Sumitomo Corporation’s participation in the FPSO Anna Nery project with a 25 per cent stake.

Yinson’s Group executive chairman Lim Han Weng said, “The collaboration with K Line reaffirms the confidence that our partners have towards Yinson’s project execution and operational strength. Their investment into FPSO Anna Nery shows their continued confidence in our ability to deliver projects efficiently, and we are thankful and honoured for the opportunity to strengthen our existing partnership with yet another project”

Conversion works on FPSO Anna Nery are progressing well, with its first steel cut carried out in April 2020, and the commencement of structural hull work. The project team is also making good progress with demolition works.

The estimated aggregate value of the FPSO Anna Nery project is US$5.4 billion, with a contract period of 25 years from the date of the final acceptance, with no options for extension thereafter.