Yinson-Premuda JV to Acquire Four Rainbow to Bid for Future Projects

Malaysia's Yinson Holdings Berhad's indirect subsidiary Yinson Heather Ltd. (YHL) entered into a Joint Venture Deed Thursday with Italy's Premuda's unit Four Vanguard Servicos E Navegacao LDA (FVSN) to establish a joint venture company (JVC) in Singapore to acquire a FVSN vessel, which will then be used in the bidding for floating production storage and offloading (FPSO) projects.

Upon completion of the JVD, the JVC will enter into a Memorandum of Agreement (MOA) to purchase the vessel from FVSN for $65.6 million (€60 million), comprising $22.3 million (€20.4 million), 19.6 million JVC ordinary shares and a convertible note of $21.8 million (€20 million) in the JVC. YHL will hold a 51 percent stake in the JVC.

The Cayman Islands-flagged vessel, Four Rainbow, is a double hull Aframax tanker built in Italy in 1992 and converted to an FPSO in 2003. The vessel can stored around 604,000 barrels of crude oil.

"The Proposed Joint Venture is in line with the fleet expansion plan of the Company ... The Vessel is a potential candidate for a number of small oilfield developments in both West Africa and South East Asia," Yinson said in the announcement filed with Malaysia's stock exchange Bursa Malaysia.