Enauta enters into direct negotiation with Yinson for FPSO contract

Fossil energy- Brazil

Brazilian oil company Enauta signed a Memorandum of Understanding (MoU) with Malaysia’s FPSO specialist Yinson for direct and exclusive negotiation of FPSO supply contracts for the Definitive System of the Atlanta Field in the Santos Basin, offshore Brazil.

The MoU establishes the beginning of a direct and exclusive negotiation for FPSO supply, comprising agreements for the chartering, operation and maintenance of the production unit.

Yinson is an independent FPSO service provider that operates globally and operates production units in Western Africa, the Americas, Europe and Southeast Asia.

“The MoU represents an opportunity to advance relevant decisions for the success of the bidding process for Atlanta’s definitive system and allows for greater predictability of the beginning of operation and conditions of the DS of Atlanta. We have decided to move forward with Yinson, a traditional FPSO supplier that is renowned worldwide and is establishing itself in the Brazilian market. We have reached an agreement that corresponds to our expectations to deliver a safe and robust production system. Enauta is also aligned with Yinson in the implementation of solutions that minimize carbon intensity per barrel produced,” said Carlos Mastrangelo, the Company’s Chief Operating Officer.

The bidding process for the FPSO considers an unit with capacity to process 50 thousand barrels of oil per day, to which 6 to 8 producing wells will be connected, including 3 wells already in operation in  the Early Production System. The bidding process considers the adaptation of an existing FPSO, which has not yet been deployed, OSX-2, made possible by an exclusive agreement with an option to purchase signed by Enauta. The bidding process for the other services and equipment necessary for the development of the DS is underway.

The Company also filed a request with the Brazilian Institute of the Environment and Renewable Natural Resources (IBAMA) to obtain a preliminary license for the DS. The Company expects to make the final investment decision of the DS in early 2022 to ensure the beginning of production in mid-2024.

Original Source: https://ocean-energyresources.com/2021/08/26/enauta-enters-into-direct-negotiation-with-yinson-for-fpso-contract/