Yinson secures FPSO extension worth RM2.5bil

By the Editorial Team · Tuesday, October 6, 2026

Yinson Production has secured a four-year extension of its contract with Eni to operate the FPSO John Agyekum Kufuor vessel in Ghana, valued at around US$600 million and extending the lease to 2036. The deal includes upgrades to the vessel’s gas processing capacity, aimed at supporting Ghana’s energy supply and prolonging the field’s productive life, with completion expected by early 2028.

Yinson Holdings Bhd’s subsidiary, Yinson Production, has secured a four-year contract extension with Eni for the operation of the FPSO John Agyekum Kufuor (FPSO JAK) vessel in Ghana. The amendment, announced in a filing with Bursa Malaysia, is valued at approximately US$600 million (RM2.5 billion) and will extend the firm lease period of the vessel to 2036.

The contract revision includes an upgrade to the floating production, storage, and offloading (FPSO) unit’s gas handling and processing systems. Yinson Production will enhance the vessel’s gas export capacity from about 210 to 220 million standard cubic feet per day (MMscf/d) to 355 MMscf/d. This upgrade is intended to mitigate the effects of anticipated declines in reservoir pressure by installing gas compression equipment. Completion of the modification project, which involves fabricating and integrating two new topside modules—the MG2 gas turbine-driven compressor module and the MC4 auxiliary gas treatment module—is expected by the first quarter of 2028.

Yinson Production holds a 74% controlling stake in FPSO JAK through a joint venture, while the remaining 26% is owned by a Japanese consortium comprising Sumitomo Corp, Kawasaki Kisen Kaisha Ltd (K Line), JGC Holdings Corp, and Development Bank of Japan Inc.

Following the upgrade, Yinson Production will benefit from an incremental daily rate under the amended contract, which will support the vessel’s extended operational tenure through 2036. The enhancements aim to bolster Ghana’s domestic gas supply and extend the field’s economic life.

Flemming Guiducci Grønnegaard, chief executive officer of Yinson Production, described the contract amendment as a significant milestone in the company’s partnership with Eni and its joint venture collaborators. He highlighted the upgrade’s role in strengthening offshore energy infrastructure and supporting Ghana’s energy needs.

In related financial results, Yinson Holdings reported a 26.7% increase in net profit to RM128 million for the second quarter ended July 31, 2026, compared with RM101 million in the same period the previous year. Revenue for the quarter declined 16.7% to RM1.14 billion from RM1.36 billion a year earlier, while earnings per share fell to 0.2 sen from 1.6 sen.

On a quarter-on-quarter basis, revenue rose 8.3% from RM1.05 billion, driven mainly by an annual charter rate escalation for the FPSO Maria Quiteria vessel and an increase in operating days.

For the first half of 2026, Yinson’s net profit increased 14.8% to RM248 million from RM216 million a year earlier, while revenue declined 15.8% to RM2.19 billion from RM2.59 billion.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.