Malaysian FPSO specialist boosts fleet with Brazil-bound floater

Malaysian floater specialist Yinson Production has boosted its fleet with the addition of the Atlanta floating production, storage and offloading vessel, which was converted at Dubai Drydocks World in the United Arab Emirates.

The Atlanta FPSO is destined for Enauta Energia’s Atlanta field in the Santos basin offshore Brazil. Yinson has a firm 15-year contract with a five-year option lease and operate contract for the floater, which is worth up to $2 billion. The redevelopment project is expected to achieve first oil in 2024.

The floater has production capacity of 50,000 barrels per day of oil and a maximum storage capacity of 1.251 million barrels of crude. It will feature an efficient carbon management plant, which utilises fuel gas for cargo tank inertisation that will significantly reduce flare gas emissions through a closed flare system.

Yinson said the facility is part of its continuous sustainability efforts in reducing carbon emissions and being the front runner in decarbonising the FPSO industry towards the goal of net zero.

Yinson and Enauta in December 2021 entered into a letter of intent with regard to Atlanta FPSO in December 2021 and subsequently signed firm contracts for the engineering, procurement, construction, installation, operation and maintenance for an initial two-year term, and a purchase option for Yinson in February 2022.

In July 2023, Yinson exercised its option to purchase the floater with a 15-year firm contract for the provision, operation and maintenance with a total contract value of up to $1.981 billion as well as project financing in the amount of $400 million.

The engineering, procurement, construction and installation scope of the Atlanta FPSO — the second of three FPSOs that Yinson will deploy offshore Brazil — is steadily progressing, Yinson on Wednesday confirmed.

“Phase one of Atlanta is moving quickly to reach first oil in 2024. The adaptation of the FPSO is an important milestone for Enauta. To achieve this goal, we have already carried out several activities. The full field development system positions,” said Enauta chief executive Decio Oddone.

“FPSO Atlanta has many engineering solutions and innovations to reduce the emissions intensity. The project demonstrates how the oil and gas industry can act positively within its operational limits, with responsibility, safety and efficiency.”

A naming ceremony for the Atlanta FPSO on 13 December was held at the Dubai yard.

“We are proud of our ongoing RLEC (repair, life extension and conversion) work for the newly named FPSO Atlanta. On completion, we are confident of FPSO Atlanta’s longevity in offshore Brazil without drydocking,” commented Drydocks World chief executive Rado Antolovic.

“The naming ceremony is another milestone in this project, which has an expansive scope for Drydocks World including the fabrication and installation of 3000 tonnes of structure[s].”