K-Line, Yinson and Sumitomo to participate in FPSO ownership and chartering business

Japanese shipping owner ‘K-Line’ has agreed with Malaysia FPSO owner ‘Yinson’ and Sumitomo Corp., to own and charter FPSO for Marlim II Project, Offshore Brazil

09.07.2020

In October 2019, ‘Yinson’ received two Letter of Intents for charter, operations, and maintenance of FPSO Marlim 2 in the north-eastern part of the Campos Basin by Petrobras.

Followed by, Malaysian FPSO owner signed up for U$ 800 million refinancing deal with 13 banks for FPSO John Agyekum Kufuor, in November 2019.

Kawasaki Kisen Kaisha, Ltd. signed agreements with Yinson Acacia Ltd, a wholly-owned subsidiary of Yinson Holdings Berhad, a Malaysian energy services provider and Sumitomo Corporation (hereinafter “Sumitomo”), to participate in the floating production, storage and offloading (FPSO*) owning and chartering business for the Marlim II Project, offshore Rio de Janeiro, Brazil.

The Marlim field is operated by Brazilian national oil company, Petróleo Brasileiro S.A. (“Petrobras”).

Upon stable operations of the FPSO being achieved in 2023, “K” Line will have around a 10% stake in the FPSO venture.

In Feb 2020, Japanese heavyweights, MODEC, Mitsui, MOL, and Marubeni come to terms for Deepwater FPSO Charter Project, Marlim 1 MV33, located in Marlim field of Brazilian Offshore Pre-Salt Oil Field.

According to the recently signed agreement, Yinson’s FPSO is planned to serve the Marlim oil and gas field revitalization project, which is operated by Petrobras and situated 150 kilometres off the Brazilian coast in the Campos Basin.

This project represents “K” Line’s second FPSO business following the offshore Ghana oil and gas field development project based on the partnership with Yinson and Sumitomo, in which the company participated in 2018.

Both entities which have entered into the time charter agreement and service agreement with Petrobras for the owning/chartering and operation/maintenance of the FPSO is currently co-owned by Yinson and Sumitomo.

Operations of FPSO is expected to commence by the 1Q of 2023, with a 25-year charter period thereafter, with no options for extension.

FPSO John Agyekum Kufuor Production Facility Capacities

Oil 58,000 BOPD
Liquid 75,000 BLPD
Water Injection 55,000 BWPD
Gas Injection 150 MMSCFD
Gas Export 210 MMSCFD

 

Source: Nauticus Live

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