YHB sells a 26% stake in its unit in Ghana to a Japanese consortium

Yinson Holdings Berhad (YHB) had entered into a Heads of Agreement (“HOA”) with a consortium of Japan-incorporated companies (the “Consortium”) for a proposed disposal of 26% equity interest of Yinson Production (West Africa) Pte. Ltd. (“YP(WA)PL”), an indirect wholly-owned subsidiary of YHB via Yinson Trillium Limited and Yinson Production Pte. Ltd. (the “Proposal”). The Consideration is expected to be in the range of USD104 million to USD117 million, subject to adjustments and contract, the YHB press release said.

The HOA was entered with the understanding of YHB and the Consortium (collectively, the “Parties”) in forming a collaboration through YP(WA)PL (“Proposed Collaboration”) in relation to the contract for the chartering, operation and maintenance of a floating production, storage and offloading (“FPSO”) facility by Eni Ghana Exploration and Production Ltd (“Eni Ghana”) at Offshore Cape Three Point Block in Ghana (the “Contract”). The FPSO, named as FPSO John Agyekum Kufuor, has produced its first oil on 22 May 2017.

The Consortium members includes Sumitomo Corporation (“Sumitomo”), Kawasaki Kisen Kaisha Limited (““K” Line”), JGC Corporation (“JGC”) and Development Bank of Japan Inc. (“DBJ”).