Yinson Optimistic About Growth Potential in FPSO Market
Malaysia-listed Yinson Holdings Bhd is optimistic about growth potential in the floating production, storage and offloading (FPSO) segment, with potential demand from countries in Southeast Asia, Africa and South America, senior company executives said, as quoted by local media The Star Friday.
The market, with six credible and reputable providers globally, is big enough to be shared by industry players bidding for FPSO units, Yinson's Group executive chairman and managing director Lim Han Weng said, adding that demand for such facilities is likely to continue growing over the next five years at around 10 to 12 units annually.
The cost of a small to a mid-sized FPSO unit is estimated at between $400 million to $500 million, while capital expenditure for larger units may could be as high as $2 billion.
Meanwhile, Yinson believes that attempts by petroleum companies to develop largely untapped oil and gas fields in Southeast Asia, Africa and South America in their search for new energy supplies present opportunities for the firm.
“As one of the top six FPSO providers in the world and the only two from Malaysia in the elite club, it would be good to explore more business in the three regions,” Lim Chern Yuan, executive director and Group CEO Lim Chern Yuan, said, as reported in The Star.
Yinson currently has a fleet comprising 6 floating production units, the company website indicated. They include 4 FPSOs - FPSO Knock Adoon, FPSO Knock Allan, FPSO PTSC Lam Soon and FPSO Petroleo Nautipa, which Yinson recently agreed to dispose of its 50 percent share in the vessel to BW Offshore. The company also owns the mobile offshore production unit (MOPU) Marc Lorenceau and floating storage offloading (FSO) PTSC Bien Dong 01.
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