business

 Yinson in talks to supply FPSO unit to Nigerian O&G company

KUALA LUMPUR: Yinson Holdings Bhd's subsidiary Yinson Production Pte Ltd (YPPL), has signed an agreement with Yinson Operations & Production West Africa Ltd (YOPWAL) and Nigerian oil and gas company First Exploration & Production (First E&P), to supply and charter of a floating production storage and offloading (FPSO) unit in Nigeria.

The agreement was agreed upon to process hydrocarbons from the Anyala and Madu fields under Oil Mining Leases 83 & 85, offshore Nigeria.

"The agreement is intended to create a mutually exclusive relationship between the parties and to facilitate exclusive negotiations for the provision and operation of floating production storage and offloading in the fields," Yinson said in a Bursa Malaysia filing today.

Further, oilfield services company Schlumberger has also agreed to invest US$700 million in development of a two-field project off Nigeria under a tripartite pact with a joint venture involving state-owned Nigerian National Petroleum Corporation (NNPC).

The agreement, inked with the alliance between NNPC and First E&P, covers development of the Anyala and Madu fields, located respectively in Oil Mining Licences 83 (OML 83) and 85 (OML 85) in the shallow-water Niger Delta.

NNPC, in a statement said the two fields would contribute 193 million barrels in crude reserves.

The fields will be developed using an existing FPSO vessel, with targeted daily output of 50,000 barrels of oil and 120 million cubic feet of gas.

 

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