Malaysian-based FPSO services specialist, Yinson, has secured additional work off Nigeria for its FPSO Adoon.
The contract extension for one month has been agreed upon between the company’s unit Adoon and Addax Petroleum Development.
Deployment of Adoon FPSO offshore Nigeria has been extended into mid-November 2022.
The FPSO has been chartered by Addax in October 2006 for a firm period of eight years with additional options bringing the total contract to 2022. Addax has previously exercised its options several times and the new extension has been agreed under the unchanged terms, Yinson informed in a statement to the stock exchange.
The value of the contract extension is estimated to be $3.4 million, Yinson said. It will not have any effect on the share capital and shareholding structure of the company. However, it is expected to have a positive impact on the earnings and net assets per share of Yinson Group.
The risks associated with the contract extension are normal operational risks that can be mitigated through the Yinson Group’s system of project management and internal business controls.
The FPSO Adoon has been deployed in Block OML 123 offshore Nigeria. The vessel has a storage capacity of 1.7 million barrels and a production capacity of 60,000 bopd.
OML123 is Addax Petroleum’s largest licence area as measured by reserves and production and is located offshore approximately 37 miles south of the town of Calabar in the South-Eastern part of Nigeria, in the Gulf of Guinea. The licence covers an area of 90,700 acres in water depths ranging from 10 to 130 feet.
The licence contains nine producing oil fields, one undeveloped field, three unappraised oil discoveries, a large 8,600-acre undeveloped gas discovery, and several exploration prospects.
•By Paul Anderson|Rigzone Staff
To contact the author, email andreson.n.paul@gmail.com