Yinson Holdings has entered into a Letter of Intent (LOI) with Aker Energy with the intent of awarding the contracts to charter, operate and maintain the floating, production, storage and offloading vessel ('FPSO') for the Pecan development project in the Deepwater Tano/Cape Three Points ('DWT/CTP') block, offshore Ghana.
Following the execution of the LOI, the parties will proceed to conclude the contracts and fulfil its conditions. The contracts will be for a firm period of ten (10) years followed by five (5) yearly extension options exercisable by Aker Energy.
Aker Energy is the operator under the DWT/CTP Petroleum Agreement with a 50% participating interest. Its partners are Lukoil Overseas Ghana Tano Limited (38%), Ghana National Petroleum Corporation (10%) and Fueltrade Limited (2%).
The Pecan field is located in ultra-deep waters, ranging from 2,400 to 2,700 metres deep, 115 kms offshore Ghana. The field will produce through Yinson’s FPSO, which will be the centre for processing and exporting of crude oil from the field, with a plateau production of approx. 110,000 barrels of oil per day.
This FPSO will be Yinson’s second vessel to operate in Ghanaian waters, with the first being FPSO John Agyekum Kufuor which has been operating for ENI in the Offshore Cape Three Points Block since 2017.
Yinson’s Group Chief Executive Officer, Lim Chern Yuan, said the award is evidence of the industry’s increasing confidence in Yinson’s abilities to deliver projects on time, and thereafter to maintain excellent uptime and safety records.
'This is Yinson’s second large project award in the last 6 months, and we are gearing up for even greater growth ahead. In line with this, we have been building our resources, capacity and expertise; putting us in a strong position to meet our commitments to the projects that we have undertaken,' he said.
Yinson’s Chief Executive Officer for Production, Eirik Barclay added that the Yinson team is greatly looking forward to working with Aker Energy on this exciting and challenging project in over 2,400 metres of water depth. He is confident in Yinson’s ability to deliver the FPSO to the Pecan field on schedule.
'We are proud that Yinson has once again been chosen to execute a project that will greatly benefit the country and the people of Ghana,' he added.