Yinson has entered into a Letter of Intent with Enauta for work in the Brazil offshore field to provide and operate a Floating Production, Storage, and Offloading Facility via redeployment of FPSO OSX-2 for the Atlanta Field located in the Santos Basin.
Under the agreement, the LOI will obligate both parties to partner on the engineering, procurement, construction, and installation contract and an operation and maintenance agreement with a call option, exercisable at the discretion of Yinson. It will also allow the company to acquire the asset-owning company of the project with a 15-year time-charter agreement and an operation and maintenance agreement of the same duration.
During this period, Enauta has a right to extend the term of the said agreements by a further 5 years. The estimated aggregate value of the Project (including a 2-year operations and maintenance agreement) is approximately RM2.1 billion. The value of the Project will be further increased to RM8.3 billion (inclusive of 5 years extension period) should Yinson exercise the call option.
Yinson has added that the contracts will contribute positively to the earnings and net assets per share of the Group during the tenure of the Contracts.
The deal comes from its earlier statement on the potential landing of the contract back in August this year, established in 1998, Enauta is one of the leading independent companies in the Exploration & Production sector in Brazil. The Company has a strong presence in Brazil with two producing offshore assets, Atlanta and Manati field, as well as 19 exploration blocks.
It is a wholly owned subsidiary of Enauta Participações S.A., a listed entity on the Brazilian stock exchange B3 since 2011 with a market capitalization of RM3.0 billion, total equity of RM2.7 billion, and a net cash position of RM1.5 billion as at June 2020.
