Fossil energy – Brazil
Malaysian FPSO contractor Yinson has signed a Letter of Intent with the Brazilian oil company Enauta Energia for the provision, operation, and maintenance of an FPSO at Enauta’s Atlanta field in the Santos Basin, offshore Brazil.
Enauta is using FPSO Petrojarl I as its initial production system to produce oil from the field and is considering deploying another FPSO in the field for full-field development.
Oil companies and Malaysian FPSO suppliers are in March Enauta’s FPSO bidding process for full development.
The bidding process considered units capable of processing 50,000 barrels of oil per day. It connects 6-8 production wells, including 3 wells already in operation in the initial production system, and adopts the existing FPSO. OS X-2 that hasn’t been deployed yet.
Enauta said the Letter of Intent on Monday it consists of FPSO OS X-2 detailed engineering and initial activities related to long lead item commitments. LoI will consider Yinson’s adaptation of FPSO units through turnkey engineering, procurement, construction and installation contracts (EPCI) with warranty and operation and maintenance for 24 months.
The cost of acquiring and adapting an FPSO will be approximately US $ 500 million. Before starting production of the DS, Yinson has the option to purchase a unit linked to funding. If the option is exercised, it will be linked to a 15-year charter, operations, and maintenance contract, which could be extended for an additional 5 years, for a total of US $ 2 billion over 20 years.
According to Enauta, the terms agreed at LoI will be subject to the signing of the final contract that will occur during the first quarter 2022 final investment decision (FID).
FPSO is Yinson’s third project award in Brazil, and the assets that won the previous two awards are expected to be completed in 2023 and 2024, respectively.
