Yinson via its wholly owned subsidiary, Yinson Acacia Ltd has entered into an agreement with Kawasaki Kisen Kaisha, Ltd. (“”K” Line”) to own around a 10% stake in a joint participation for the charter, operations and maintenance of FPSO Anna Nery, a floating, production, storage and offloading (FPSO) vessel for the Marlim revitalisation project in Brazil.

Completion of the transaction is subject to final acceptance of the FPSO as well as the FPSO achieving stable operations which is expected to be met in 2023.

In line with the overall financing strategy for the project, the agreement makes “K” Line the second strategic partner following Sumitomo Corporation’s (“Sumitomo”) participation in the FPSO Anna Nery project with a 25% stake.

Commenting on the Group’s business strategy, Yinson’s Group Executive Chairman Lim Han Weng said, “The collaboration with “K” Line reaffirms the confidence that our partners have towards Yinson’s project execution and operational strength. Yinson and “K” Line have a strong relationship built on trust and cooperation seeing as they already hold an indirect equity stake in our FPSO John Agyekum Kufuor (“JAK”). Their investment into FPSO Anna Nery shows their continued confidence in our ability to deliver projects efficiently, and we are thankful and honoured for the opportunity to strengthen our existing partnership with yet another project”.

“K” Line is one of four partners including Sumitomo that make up the Japanese consortium who successfully acquired 26% equity interest in FPSO JAK in June 2018, a transaction that velocitised the value of the project for Yinson.

Conversion works on FPSO Anna Nery are progressing well, with its first steel cut carried out in April 2020, and the commencement of structural hull work. The project team is also making good progress with demolition works.

The estimated aggregate value of the FPSO Anna Nery project is USD5.4 billion, with a contract period of 25 years from the date of the final acceptance, with no options for extension thereafter.