2 minutes
PETALING JAYA: Yinson Holdings Bhd has entered into a proposed business arrangement with Japan Offshore Facility Investment 1 Pte Ltd (JOFI) for the provision of a floating production, storage and offloading (FPSO) vessel facility for the Marlim field in Brazil.
The proposed arrangement is via a share subscription agreement with Yinson’s indirect wholly owned subsidiaries Yinson Boronia Consortium Pte Ltd and Yinson Acacia Limited, Sumitomo Corp and JOFI.
The parties also inked a convertible loan agreement, appended to the share subscription agreement.
Under the proposed business arrangement, the contracts for the provision and maintenance of the Marlim 2 FPSO have an estimated aggregate value of US$5.4 billion (RM24 billon), for a fixed period of 25 years
The Marlim 2 FPSO will be Yinson’s first vessel to operate in Brazil waters, and is the group’s largest project to date.
“The proposed business arrangement will provide an opportunity for Yinson and Sumitomo to establish collaboration based on respective party’s expertise and strengths. Sumitomo’s participation through JOFI will alleviate some of the funding requirements and project related risks (in exchange for the project returns) that would otherwise be required of Yinson if the project were to be wholly-owned by Yinson,“ Yinson said in a stock exchange filing.
Barring any unforeseen circumstances, the share subscription agreement is expected to be completed by mid-May 2020.
The effective date for the convertible loan agreement is on the date of completion of the subscription of shares of YBC by JOFI or about the date of the convertible loan agreement.
