Enauta signs Letter of Intent with Yinson for Atlanta Field’s FPSO

We inform the signing of a a Letter of Intent (LoI) with Yinson Holdings Berhad, through its subsidiary Yinson Acacia Ltd. (“Yinson”), comprising the initial activities related to detailed engineering and long lead item commitments of FPSO OSX- 2. The unit, for which Enauta has an exclusive purchase option, is planned to be used for the Definitive System (DS) of the Atlanta Field.

 

The LoI considers the adaptation of the FPSO unit by Yinson through a Turnkey Engineering, Procurement, Construction and Installation Contract (“EPCI”), with warranty and Operation and Maintenance (“O&M”) for 24 months. The FPSO acquisition and adaptation cost will be at around US$500 million.

 

Before the beginning of the DS production, Yinson will have the option to purchase the unit linked to financing. If the option is exercised, it will be linked to charter, operation and maintenance contracts for a period of 15 years, which may extended for another five years, totaling US$2.0 billion for the 20 years.

 

The conditions agreed upon in the LoI will be subject to the signing of the definitive contracts, which should occur upon the Final Investment Decision (FID) in the first quarter of 2022.

 

“In our understanding with Yinson, we have continuously ensured the implementation of viable technologies for minimizing carbon emissions. We reaffirm that the adaptation of this FPSO unit will be a pioneering project in terms of avoided emissions, optimizing its operational and environmental efficiency,” said Carlos Mastrangelo, COO.

 

On August 26, 2021, the Company signed a Memorandum of Understanding (MoU) with Yinson for the direct and exclusive negotiation of FPSO charter and operation contracts. The bidding process for selecting the main equipment suppliers is progressing as planned. In addition to the unit, the capex related to well drilling and subsea equipment continues estimated at US$500-700 million.