Brazilian oil company Enauta said Friday it had received a letter from the Malaysian FPSO company Yinson, notifying the exercise of an option to acquire FPSO Atlanta, through the purchase of all the shares of AFPS B.V., the platform owner company.
Enauta normally produces oil from the Atlanta field offshore Brazil using the early production system the Petrojarl I FPSO. The Petrojalr I FPSO has a production capacity of 30,000 barrels of oil per day and a storage capacity of 180,000.
The Full Development System – the Atlanta FPSO –is being converted in Dubai Drydocks World, with the work including structural upgrades, refurbishment, and enhancement of equipment. It will have a production capacity of 50,000 BOPD, 12.4 MMscfd gas, and a storage capacity of 1,800,000 bbl.
Announcing Yinson’s Atlanta FPSO purchase option exercise, Enauta explained that the exercise of the option is an important milestone in de-risking the full development of the Atlanta Field, confirming the near completion stage of FPSO Atlanta, in-line with its schedule and budget.
Additionally, Enauta said, the option exercise implies a reduction in Enauta’s net investment in the platform through completion of approximately US$ 100 million.
Yinson’s acquisition of FPSO Atlanta reflects a value of US$ 465 million for AFPS B.V., of which US$ 86 million are paid in cash and EPCI deferred payments and US$ 379 million in 15-year financing granted to Yinson, Enauta explained.
Enauta said that Yinson’s option exercise also initiates the 15-years charter, operation, and maintenance agreements, with a possible five-year extension.
This contract reflects total value of US$ 2.0 billion for 20-years counted from the platform’s production start.
Atlanta’s Field Phase 1 production is expected to start mid-2024 with six production wells. FPSO Atlanta has the capacity to process 50,000 barrels of oil per day, 140,000 barrels of water per day, 20 MW of power generation and 1.6 million barrels of oil in inventory capacity.
The Atlanta FPSO
Enauta in February 2022 completed the acquisition of the FPSO OSX-2 for the Definitive System of the Atlanta Field in Brazil for $80 million.
In December 2021, Enauta issued Yinson an LOI for the adaptation of FPSO OSX-2 by Yinson through a turnkey engineering, procurement, construction, and installation contract (“EPCI”), with warranty and Operation and Maintenance (“O&M”) for 24 months.
It was said at the time that the FPSO acquisition and adaptation cost would be at around $500 million, and that Yinson would, before the startup of production from the FPSO, have the option to purchase the unit linked to financing. If the option was exercised – which happened today – it would be linked to charter, operation, and maintenance contracts for a period of 15 years, which may be extended for another five years, totaling US$2.0 billion for the 20 years.