KUALA LUMPUR: Yinson Production has secured a limited recourse term-loan facility of up to US$1.3 billion for the pre and post-delivery financing of the Agogo FPSO (floating production storage and offloading) vessel.
The financing is provided by a consortium of 13 lenders, including international banks and institutional investors, the company said today.
It will be utilised over the course of the construction of the FPSO.
The financing comprises three pari-passu secured tranches with staggered maturities of up to 10 years post-delivery of the FPSO.
Yinson Production entered into a firm contract for the provision, operation and maintenance of the Agogo FPSO with Azule Energy, a 50:50 joint venture between BP and Eni, Angola's largest independent oil and gas producer, in February 2023.
The contract has a firm operation period of 15 years, with additional optional periods of up to five years and a total contract value of up to US$5.7 billion.
The Agogo FPSO will have a production capacity of 120,000 barrels of oil per day.
Once construction is completed, the Agogo FPSO will be deployed to the Agogo integrated west hub development project located in the West Hub of Block 15/06 offshore Angola.
"The Agogo FPSO is designed with a comprehensive suite of carbon emission reduction technologies, including the first-ever carbon capture technology onboard an FPSO.
"With an estimated reduction of carbon emissions of 27 per cent compared to a conventional design, the Agogo FPSO also incorporates other technologies to reduce emissions including closed flare system, hydrocarbon blanketing, combined cycle technology, automated process controls and all electric drives systems," it said.
These features are integral to Yinson Production's transition towards achieving carbon neutral by 2030 and net zero by 2050.
Yinson Production chief financial officer Markus Wenker said the transaction is a significant milestone for it.
"It not only is our single largest financing to date, but the commercial multi-tranche structure – the first of its kind in the industry – significantly increases the efficiency of the financing compared to traditional structures, whilst diversifying the funding base by combining different lender groups in a single transaction."