Yinson Holdings Bhd has secured a contract amendment worth about US$810 million for modification works and an extension of the firm contract term for the FPSO John Agyekum Kufuor offshore Ghana.
The group said Yinson Production (West Africa) Pte Ltd and Yinson Production (West Africa) Ltd entered into the amendment with Eni Ghana Exploration and Production Ltd on Oct 2.
The amendment covers the Non-Associated Gas modification project for the floating production, storage and offloading facility at the Offshore Cape Three Points Block in the Tano Basin, about 60km off the coast of Ghana.
The scope includes the installation of new gas compression facilities to increase gas exports from the first quarter of 2028.
It also extends the FPSO’s firm contract term by four years to 2036.
Yinson said the value of the incremental day rates for the modification works and the contract extension is approximately US$810 million, of which about US$600 million is attributable to the Yinson Group.
The contract amendment is expected to contribute positively to Yinson’s earnings and net assets per share.
Yinson said the key risks during the modification phase include project execution issues such as schedule delays and cost overruns, while the operations and maintenance phase carries risks related to timely maintenance, performance requirements and regulatory compliance.
The group said these risks are expected to be mitigated through its experience in the FPSO industry, internal controls and project execution plans.
Yinson holds a 74% equity interest in Yinson Production (West Africa) Pte Ltd and a 49% interest in Yinson Production (West Africa) Ltd.
The FPSO John Agyekum Kufuor serves the Offshore Cape Three Points development in Ghana.
Yinson said the amendment will not affect its share capital or shareholding structure.
