FPSO JAK lease to run until 2036 under contract amendment
Yinson said the lease extension and an additional day rate would increase Yinson Production’s firm contract backlog by approximately US$600 million.
A contract amendment with Eni Ghana Exploration and Production Ltd (Eni) provides for a four-year extension of the firm lease for FPSO John Agyekum Kufuor (FPSO JAK), taking it to 2036, Yinson Holdings Bhd said. The agreement also covers modifications to increase gas-processing capacity offshore Ghana.
Yinson told Bursa Malaysia that the agreement was signed by Yinson Production (West Africa) Pte. Ltd, its 79 per cent-owned subsidiary, and Yinson Production (West Africa) Ltd, which is 49 per cent-owned by the group.
An additional day rate will take effect after the modifications are finished and continue through 2036. Together with the longer lease, it would add approximately US$600 million to the firm contract backlog of Yinson Production, the group said.
The Non-Associated Gas (NAG) project has an expected completion date in the first quarter of 2028. Yinson Production will carry out topside works, including fabricating and integrating the MG2 module with two gas turbine-driven compressors. A second module, MC4, will provide auxiliary gas treatment to accommodate greater gas volumes.
The group said the increased capacity would support gas supply within Ghana and regional energy security. It also expects the amendment to benefit earnings and net assets per share, without changing the company’s share capital or shareholding structure.
