K-Line: Basic Equity Participation Agreement Made on FPSO Owning and Chartering Business for O&G Field, offshore Ghana

By Curious

Four companies, namely, Kawasaki Kisen Kaisha, Ltd. (K-Line), Sumitomo Corporation, JGC Corporation (JGC), and Development Bank of Japan Inc. (DBJ) 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 (Yinson).

After commencement of the definitive agreement, the four partners will acquire, through a joint venture, 26% of the shares of Yinson Production (West Africa) Pte. Ltd., a FPSO owning company operated by Yinson.

K-Line: Basic Equity Participation Agreement Made on FPSO Owning and Chartering Business for O&G Field, offshore Ghana

Yinson Production (West Africa) Pte. Ltd 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. Barring any unforeseen circumstances, the domestic supply of natural gas from FPSO is expected to commence in Ghana by mid-2018.

FPSO is key infrastructure for deep-water oil and gas production, which are likely to increase steadily in the future; thus, demand for FPSO is expected to increase. In preparation for this demand, “K” Line, Sumitomo Corporation and JGC will acquire knowledge and expertise through the project as their first FPSO owning and chartering business. DBJ will supply risk money with the “Special Investment Operations” as the project will help improve vitality and develop sustainability of the Japanese economy. 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.

Outline of the project:

 Name of FPSO  John Agyekum Kufuor
 Crude oil production capacity  58,000 barrels/day
 Gas production capacity  210 million square feet/day
 Crude oil storage capacity  1.4 million barrels
 Mooring system  Spread mooring (about 500 to 1,000 meters below  the surface)
 *Multi-point mooring system to hold a vessel in  position using  multiple mooring lines
 Shareholding ratio  Yinson Group: 74%, four partners: 26%
 Chartering period  15 years from June 2017


About Yinson Holdings Berhad:

Established in 1983 as a local transport and logistics company in Malaysia, which was divested from Yinson Group entirely in 2016. Yinson is currently a full-fledge company in the oil and gas industry and major player in the FPSO industry and is listed on the Main Market of the Malaysian stock exchange, Bursa Malaysia Securities Berhad. Yinson’s current fleet consist of five FPSOs and one floating, storage and offloading (“FSO”) unit as of June 2017.  

  • Head office location: KL Eco City, 59200 Kuala Lumpur, Malaysia
  • Business: Marine services including offshore production services in support of global oil field developments

 Source: K-Line