Yinson upbeat, sees higher bidding activity for FPSO projects

Local media cited him as saying on the sidelines of the group’s annual general meeting that tenders have been at their highest compared to the past three years. “Over the last few years, we believe there was under investment in O&G business. However, all business activities are catching up and we see a lot of projects will be awarded in a short-period of time,” he said.

Lim said Yinson secured the Layang FPSO charter contract from JX Nippon Oil & Gas Exploration (Malaysia) in May with aggregate value of $860m, which will commence operations in Malaysia next year.

As at May 31, Yinson's orderbook stood at $4.3bn, providing earnings visibility until 2037.

Meanwhile Yinson is currently also in exclusive negotiations with First Exploration & Petroleum Development (First E&P), a Nigeria-based oil company for an FPSO project for the Anyala and Madu fields offshore Nigeria.

First E&P has a 40% stake in the fields with the rest held by the Nigerian National Petroleum Corp. Lim said Yinson hoped to seal the deal by September but contract details have yet to be finalised.

“Both parties are very aligned to sign a definitive agreement as soon as possible. We are still finalising the contract value with the client because it is a very long-term contract with big value,” Lim said without disclosing the contract value.

Lim said Yinson is confident demand for the FPSO charter business will improve in the next two years, while continuing its ongoing effort to reduce operational cost.

“We look at projects all the time. It has to be the right strategic value with right pricing. During the downturn in oil prices in the last three years, we have seen many companies' assets available for acquisition.

While Yinson's FPSO business has mainly been in the Africa and Asia markets, the company has set its sights on the Americas for future potential projects.

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