BP has signed an exclusive option with Yinson for an FSPO to work on the proposed PAJ project, in Angola’s Block 31.
BP Exploration Angola, the operator of the block, has reserved the FPSO Nganhurra. It will work on the proposed 10-well project, which covers the Palas, Astrea and Juno fields.
Yinson will reserve the FPSO for BP until the end of 2022, with an option to extend until June 23, 2023.
During this period, the companies will negotiate a contract to convert, operate, maintain and lease the FPSO.
The lease and operate contract, which should run for 10 years, is expected to begin at the end of 2024. This is subject to BP reaching a final investment decision (FID) on PAJ. BP is due to combine its Angolan operations with Eni in the second half of this year.
Redeployment options
Yinson CEO Flemming Grønnegaard said the deal confirmed the company’s position as “preferred contractor in executing FPSO redeployment projects, which have significant capex and schedule advantages, for established oil & gas players such as bp”.
The official noted Yinson had recently carried out two redeployment projects, on the FPSO Abigail-Joseph and FPSO Helang. It is also working on a redeployment plan for FPSO Atlanta.
“We are confident that our track record, technical knowledge and experience in this industry will support and fulfil BP’s business needs,” Grønnegaard said.
Yinson has an exclusive option to buy the FPSO Nganhurra until June 30, 2023. The vessel has production capacity of 100,000 barrels per day. Samsung built the FPSO in 2006.
The FPSO was deployed on Australia’s Enfield field until autumn 2018. It is now laid up outside Labuan, in Malaysia.
Woodside Energy, in 2018, said the 270 metre-long double-hulled FPSO would be laid up. The Australian company said its “condition makes it too good for the scrap yard”.
Heerema Marine Contractors, on July 25, said it had won decommissioning work for the Nganhurra riser turret mooring (RTM), which is still on the Enfield field.
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