business

Yinson Production completes FPSO Adoon contracts in Nigeria

KUALA LUMPUR: Yinson Production (YP), the offshore production business unit of Yinson Holdings Bhd, has completed the 16-year contract for the floating, production, storage and offloading (FPSO) Adoon, which has been operating at Block OML 123 offshore Nigeria.

YP chief executive officer Flemming Grønnegaard said FPSO Adoon had contributed significantly to Nigeria's energy landscape for the past 16 years, positively impacting the local economy and well-being of the community.

"This has been made possible by our passionate team at Port Harcourt, with unwavering support from our client Addax Petroleum, the regulatory bodies in Nigeria and the local community and supply chain.

"Deepest appreciation to everyone who played a part in FPSO Adoon's success story," he said in a statement today.

FPSO Adoon's contract had an original period of eight years until 2014, with the option to extend by up to eight more years until 2022.

The contract was further extended by the client Addax Petroleum Development (Nigeria) Ltd (Addax Petroleum) through consecutive monthly extensions until January 2023.

Addax Petroleum exercised its contractual option to purchase FPSO Adoon at the end of the contract period, and the sale was completed on 11 January 2023.

FPSO Adoon was constructed by YP's predecessor company, Norway-listed Fred Olsen Production ASA, for Addax Petroleum and commenced operations in October 2006.

Since its commencement, the asset has provided safe and reliable operations to the client with an average technical uptime above 99.9 per cent and no lost time injuries (LTI) for the last 11 years.

FPSO Adoon has produced over 212 million barrels of oil and clocked more than six million offshore manhours over its contract tenure.

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