Yinson production begins 15-year charter for Agogo FPSO in Angola

New Straits Times

8 hours ago

KUALA LUMPUR: Yinson Holdings Bhd's offshore energy solutions and floating, production, storage, and offloading (FPSO) business unit, Yinson Production, has commenced the 15-year firm charter for the Agogo FPSO, following the issuance of the Provisional Operational Readiness Certificate (PORC) on Aug 12, 2025.
Yinson Production said the Agogo FPSO had earlier achieved first oil on Aug 29, 2025 - four months ahead of the original schedule and 29 months after the contract award.
"The PORC marks the beginning of the FPSO's 15-year firm lease and operate contract with client Azule Energy, Angola's largest independent oil and gas producer and a 50:50 joint venture between BP and Eni," it said in a filing with Bursa Malaysia.
The contract has a firm period of 15 years, with optional annual extensions of up to five years. The total contract value is in excess of US$5 billion (US$1=RM4.20).
Yinson Production entered into the contract for the provision, operation and maintenance of the Agogo FPSO with Azule Energy in February 2023. With a production capacity of 120,000 barrels of oil per day and a storage capacity of 1.6 million barrels, the FPSO is deployed at the Agogo Integrated West Hub Development Project in the West Hub of Block 15/06 offshore Angola.
Following completion of the construction, integration, mechanical completion, and commissioning, the Agogo FPSO sailed away from Shanghai, China in March 2025, arrived in Angola in May 2025 and completed mooring hook up in June 2025.
It features a comprehensive suite of emissions-reducing technologies including closed flare system, hydrocarbon blanketing, combined cycle technology, automated process controls, and all-electric drives.
It is also the world's first operating FPSO with carbon capture technology.
With the Agogo FPSO having received PORC, 97 per cent of Yinson Production's total contracted revenue backlog of about US$19 billion now stems from fully operational assets.
The successful completion of the project also frees the project's engineering, procurement and construction (EPC) team to execute new projects.
Yinson Production chief executive officer (CEO) Flemming Guiducci Grønnegaard said achieving first oil four months ahead of schedule underscores the company's capability to deliver complex projects on or ahead of time, meeting the highest standards.
"This success once again highlights Yinson Production's excellence in project execution, providing our clients with certainty and creating long-term value.
"As our first asset in Angola, the Agogo FPSO marks an important step in expanding our footprint in Africa and will positively contribute to Angola's economic growth," he said.
Azule Energy CEO Adriano Mongini said the vessel's low-carbon footprint and pioneering carbon capture technology demonstrate a commitment to efficient and sustainable operations.
"The issuance of the PORC is a key milestone, and we are confident in Yinson's ability to operate and maintain this asset with excellence," said Mongini.
Meanwhile, Agogo FPSO project director Per Dyberg said the ahead-of-schedule delivery reflected the outstanding collaboration between Yinson Production and Azule Energy.
"As we hand over to our operations colleagues, I am confident the Agogo FPSO will continue to perform to the highest standards for many years to come," he said.