Yinson Tallies Layang FPSO Contract

Floating production, storage and offloading unit (FPSO) provider Yinson announced Thursday it has received a letter of award from JX Nippon to provide operation and maintenance services for an FPSO due to commence operations at the the Layang field offshore Malaysia by the fourth quarter of 2019.

The charter contract is for a firm period of eight years, plus 10 extension period options of one year each.

Yinson said the estimated aggregate value of the operation and maintenance contract, assuming the extension options are fully exercised, is approximately $578 million.

In April 2018 Yinson took over the contract to supply an FPSO to Nippon for use on the Layang gas/condensate field offshore Sarawak.

Malaysia’s THHE had in 2014 won a contract to build, install, and lease an FPSO for oil production at Layang, but the contract collapsed when THHE was unable to complete the conversion due to financial issues. The contract was ultimately novated to Yinson.