YP signs firm contract for project AGOGO in Angola
Yinson Production (“YP”) said that it has, through wholly owned subsidiaries, entered into a firm contract with Eni Angola S.p.A., a wholly owned subsidiary of Azule Energy (“Azule”), for the provision, operation and maintenance of a floating, production, storage and offloading asset for the Agogo Integrated West Hub Development Project in Angola (“FPSO Agogo”).
Azule is Angola’s largest independent oil and gas producer, and a 50/50 joint venture between BP p.l.c. (“BP”) and Eni S.p.A. (“Eni”).
The contract has an estimated aggregate value of approximately USD5.3 billion and a firm period of fifteen years from the date of the final acceptance, with the option to extend for a further five (5) years.
FPSO Agogo is expected to commence operations in the fourth quarter of 2025. The signing of the firm contract follows on from the signing of an agreement for preliminary activities on 2 December 2022 between the parties.
FPSO Agogo will be YP’s first offshore production project in Angola and marks YP’s eighth FPSO project in the West African region and will increase YP’s total order book to approximately USD22.4 billion. Lim Chern Yuan, Group Chief Executive Officer of Yinson Holdings Berhad, said: “The contract award is a testament of YP’s standing as a reliable FPSO contractor and responsible local operator. Our longstanding relationship with Eni, one of the JV partners in Azule alongside BP, started with the contract award for FPSO John Agyekum Kufuor back in 2017, which we delivered three months ahead of schedule. We have also maintained an excellent safety and uptime track record which paved the way for our involvement in the FPSO Agogo project. Together with our client, we hope to further contribute to the production of energy in this region.”
YP Chief Executive Officer Flemming Grønnegaard, commented, “We have been operating in the African region since 1995, and this is a vital market to us. The team has gained valuable experience and skills in the region and we are ready to demonstrate once again our capabilities to deliver a world-class FPSO. We are committed to delivering value-added results for our client, whilst implementing a low emission design that helps to mitigate climate change. Together, we hope to pioneer some sustainable technologies such as carbon capture that we believe can pave the way for the decarbonisation of the FPSO industry.” Adriano Mongini, Azule Energy CEO added, “This is a key milestone for Azule Energy. Agogo marks the start of a new wave of major investments in Angola’s deep water oil production. With the right partnerships, we trust that this project will be delivered in a safe and efficient manner bringing significant value of activities for the country’s oil and gas industry.”
Yinson Production (“YP”) is the offshore production business unit of Yinson Holdings Berhad (“Yinson”, or “the Group”), a global energy infrastructure and technology company headquartered in Malaysia. The Group is active in offshore production, renewable energy, green technologies and offshore marine, and a presence in 18 countries. Yinson was established in 1983 as a transport agency in Johor Bahru. After successfully entering the FPSO market through a joint venture to build two offshore production assets in Vietnam, Yinson transformed to become a full-scale execution and service FPSO provider in 2014 through the acquisition of Fred. Olsen Production ASA and subsequent divestment of its non-oil & gas business segments. Today, YP is one of the largest independent floating production, storage and offloading (“FPSO”) leasing companies globally, with an orderbook of approximately USD22.4 billion until 2048.