Equity participation agreement on FPSO
17 July 2017
Four companies, namely, Sumitomo Corporation, Kawasaki Kisen Kaisha, Ltd., JGC Corporation, and Development Bank of Japan Inc. have agreed in principle to participate in the owning and chartering business for oil and gas floating production, storage and offloading (FPSO) run by the Malaysian offshore production services provider, Yinson Holdings Berhad and its group of companies.
After commencement of the definitive agreement, the four partners will acquire, through a joint venture, 26% of the shares of Yinson Production Pte. Ltd., a FPSO owning company operated by Yinson. YP (WA) PL has concluded a 15-year long-term FPSO chartering agreement with Eni Ghana Exploration and Production, Ltd., which is an affiliate of the major Italian oil company Eni SPA, and started oil production at Offshore Cape Three Point Block (OCTP), approximately 60 kilometers south west of Ghana, in May 2017. The domestic supply of natural gas from FPSO is expected to commence in Ghana by mid-2018.
Through the project, the four partners will contribute to stable oil and natural gas supplies in Ghana, thus solving natural gas and electricity shortages in the country.