Yinson and Sumitomo partner on Brazil FPSO project

30 April 2020 (Last Updated July 29th, 2020 13:30)

Malaysia’s Yinson Holdings and Japan’s Sumitomo have finalised an agreement to participate in the floating production, storage and offloading (FPSO) owning and chartering business for the Marlim II project offshore Brazil.

Yinson and Sumitomo partner on Brazil FPSO project
Yinson and Sumitomo announced their plans to partner on the Marlim revitalisation project in March 2019. Credit: Yinson Holdings Berhad.

Malaysia’s Yinson Holdings has agreed to share a vessel chartering contract with Japan’s Sumitomo. The two will collaborate on a floating production, storage and offloading (FPSO) vessel chartering business for the Marlim II project offshore Brazil.

Sumitomo will have a 25% stake in chartering the FPSO vessel Anna Nery. The Anna Nery is the FPSO vessel planned to serve the Marlim oil and gas field revitalisation project which is valued at $5.4bn.

The contract for the project was awarded to Yinson by Petrobras in October last year. It remains valid for 25 years.

The Marlim field is located approximately 150km from Rio de Janeiro, off the southeast coast of Brazil.

Sumitomo said that the Marlim II project represents its second FPSO vessel business following the company’s field development project offshore Ghana in 2018.

Yinson Group CEO Lim Chern Yuan said: “Yinson and Sumitomo have a longstanding relationship built on trust and cooperation. In Sumitomo, we saw a partner that, like us, was seeking long-term strategic partnership – not just financial returns on a single project.

“We are confident that the collaboration with Sumitomo will improve our ability to deliver FPSO Anna Nery safely and on time. We look forward to working with Sumitomo for future projects in time to come.”

Marlim is Sumitomo’s first project where its it is involved from the construction phase. At the same time, the Anna Nery will be Yinson’s first vessel operating in Brazilian waters.

According to Sumitomo, first production from the field is slated to start in 2023, with a 25-year charter thereafter.

Yinson and Sumitomo announced their plans to partner on the Marlim revitalisation project in March 2019.