Monday, June 24, 2019

Addax Petroleum Extends Yinson’s Adoon FPSO Deal

November 25, 2018

FPSO Adoon - Nigeria. Image: Yinson

Nigeria-focused oil company Addax has extended the charter for the Yinson-owned FPSO Adoon for another three months, pending discussion for a potential longer-term deal.

"Unless otherwise expressly defined in this announcement, terms and expressions used in this announcement shall have the same meaning as ascribed to them in our earlier announcements made in October 2018," the Malaysian-based Floating, Production, Storage and Offloading (FPSO & FSO) service providers said in a stock exchange announcement.

The original contract for FPSO Adoon was awarded on Oct 17, 2006 for a firm period of eight years with an option to renew up to eight years, it said.

“The contract expired on Oct 16, 2014 and was first extended for a year to Oct 16, 2015 and thereafter for a further three years to Oct 16, 2018,” it said.

It said that in view that negotiations are still ongoing as to a substantive extension of the tenure of the Contract, Addax has via a letter dated 21 November 2018 further extended the Contract on an interim basis from 16 January 2019 to 16 April 2019 upon the existing terms and conditions.

The extension of the Contract on an interim basis is expected to contribute positively to the revenue and earnings of Yinson Group for the financial years ending 31 January 2019 and 2020.

FPSO Knock Adoon has been operating on the Antan field in Nigeria throughout the contract period. Adoon is an indirect wholly-owned subsidiary of Yinson.

Addax is a subsidiary of the Sinopec Group, one of the largest oil and gas producers in China, the biggest oil refiner in Asia and the third largest worldwide.

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