Malaysian floater player to supply local independent First E&P with unit to exploit Anyala and Madu fields Malaysia’s Yinson Holdings has firmed up a deal to provide Lagos-based independent First E&P with a floating production, storage and offloading unit off Nigeria.
The long-term deal will see Yinson deploy an FPSO, to be named Abigail-Joseph, on the Anyala field to exploit First E&P’s Anyala and Madu discoveries in oil mining leases (OML) 83 and 85. The bareboat charter deal is also accompanied by operations and maintenance (O&M) deal, with the total value of both deals up to $901.79 million, Yinson said on Thursday.
The bareboat charter has a firm period of seven years, with one option to extend this by another two years and six one-year extension options, giving a total possible charter period of 15 years. The sum of $901.79 is inclusive of the extension periods, with $617.09 million relating to the bareboat charter and $284.7 million to the O&M elements. The charter is set to begin in the fourth quarter.
Yinson said in late December that it was still in discussions with First E&P about the charter, having at that time received a signed copy of the amendment agreement from First E&P to extend the deadline to conclude the talks from 23 November until 27 December. Yinson originally revealed in June it was in negotiations with First E&P over the potential terms of a bareboat charter.
The FPSO would be installed at the Anyala field and be capable of handling 50,000 barrels per day of oil and 120 million cubic feet per day of gas.
The Anyala discovery is located in OML 83 and has estimated in-place resources of 218 million barrels of oil and 175 Bcf of gas and is the core asset in this project. Madu, in OML 85, holds some 89 million barrels of oil and 739 Bcf of gas.
First E&P operates OML 83 and 85 with a 40% interest and is partnered by state-owned Nigerian National Petroleum Corporation, which holds the remaining 60%.
Leave a Reply