Malaysian Yinson Holdings wins Eni $2.54b FPSO contract for Ghana

A Malaysian company, Yinson Holdings Bhd, has been awarded a $2.54 billion contract by Eni Ghana Exploration & Production Ltd., for the chartering, operation and maintenance of a floating production, storage and offloading (FPSO) vessel.

The vessel would process oil and gas from the Offshore Cape Three Points (OCPT) block in the Tano basin, which is 60km offshore Ghana.

According to available information, the deal is for a firm charter period of 15 years with five yearly extension options exercisable by Eni Ghana.

“Should Eni exercise all of the extensions, the estimated total aggregate value of the contract would reach $3.26 billion,” it says.

The FPSO will have an available storage capacity of 1.7 million bbl, an oil processing capacity of 58,000 barrels per day, a gas injection capacity of 150 million metric standard cubic feet per day (MMscfd), and a maximum future gas-export capacity of 210 MMscfd.

It indicates that the vessel will be based on the conversion of the Yinson Genesis, a recently acquired very large crude carrier.

Eni, Vitol and the Ghana National Petroleum Corporation (GNPC) signed an agreement to proceed with the OCTP integrated oil and gas project in Ghana.

First oil production is expected in 2017, first gas in 2018 and the peak production will be 80,000 barrels of oil equivalent per day (boe/d) in 2019.

Eni, through its local subsidiary Eni Ghana, is the operator of Block OCTP with a 47.22 percent stake. Other partners are Vitol with 37.77 percent and the GNPC has15 percent.

Ghana became an oil producer in December 2010 after oil was discovered in commercial quantity in June 2007.

By Emmanuel K. Dogbevi