Yinson Production, a branch of Malaysia’s oil and gas services firm Yinson Holdings Bhd, has secured a record $1.3 billion in debt financing for its Agogo Floating Production Storage and Offloading (FPSO) unit.
Yinson Production, a branch of Malaysia’s oil and gas services firm Yinson Holdings Bhd, has secured a record $1.3 billion in debt financing for its Agogo Floating Production Storage and Offloading (FPSO) unit, marking the company’s largest financial transaction to date.
The innovative financing structure, arranged with a consortium of 13 international banks and institutional investors, is divided into three tranches. These tranches have staggered maturities extending up to 10 years post-delivery, a pioneering approach in the industry.
This strategic move comes after Yinson Production was awarded a contract in February 2023, valued at approximately $5.7 billion, to provide, operate, and maintain the Agogo FPSO for Azule Energy, a joint venture between energy giants BP and Eni. The vessel is currently under-construction in Shanghai, with the lifting and installation of the first modules and electrical system connection of the residential area achieved last month.
The Agogo FPSO, destined for deployment at the Agogo Integrated West Hub Development Project offshore Angola, is designed to produce 120,000 barrels of oil per day. It incorporates a full suite of carbon emission reduction technologies, including the first-ever carbon capture system on an FPSO, aiming to cut carbon emissions by 27% compared to traditional designs. The FPSO was presented by Yinson Production at AOW 2023 in Cape Town.
“This transaction is a significant milestone for Yinson Production,” Yinson Production’s Chief Financial Officer, Markus Wenker said.
"It's not only our single largest financing to date, but the commercial multi-tranche structure – the first of its kind in the industry – significantly increases the efficiency of the financing compared to traditional structures, whilst diversifying the funding base by combining different lender groups in a single transaction. We thank all our lenders for their trust in us and support in passionately delivering this powerful financing solution for the Agogo FPSO.”
The Agogo FPSO’s design aligns with Yinson Production’s environmental goals, setting a path towards carbon neutrality by 2030 and net-zero emissions by 2050, further solidifying the company’s position as a leader in sustainable energy solutions.
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The innovative financing structure, arranged with a consortium of 13 international banks and institutional investors, is divided into three tranches. These tranches have staggered maturities extending up to 10 years post-delivery, a pioneering approach in the industry.
This strategic move comes after Yinson Production was awarded a contract in February 2023, valued at approximately $5.7 billion, to provide, operate, and maintain the Agogo FPSO for Azule Energy, a joint venture between energy giants BP and Eni. The vessel is currently under-construction in Shanghai, with the lifting and installation of the first modules and electrical system connection of the residential area achieved last month.
The Agogo FPSO, destined for deployment at the Agogo Integrated West Hub Development Project offshore Angola, is designed to produce 120,000 barrels of oil per day. It incorporates a full suite of carbon emission reduction technologies, including the first-ever carbon capture system on an FPSO, aiming to cut carbon emissions by 27% compared to traditional designs. The FPSO was presented by Yinson Production at AOW 2023 in Cape Town.
“This transaction is a significant milestone for Yinson Production,” Yinson Production’s Chief Financial Officer, Markus Wenker said.
"It's not only our single largest financing to date, but the commercial multi-tranche structure – the first of its kind in the industry – significantly increases the efficiency of the financing compared to traditional structures, whilst diversifying the funding base by combining different lender groups in a single transaction. We thank all our lenders for their trust in us and support in passionately delivering this powerful financing solution for the Agogo FPSO.”
The Agogo FPSO’s design aligns with Yinson Production’s environmental goals, setting a path towards carbon neutrality by 2030 and net-zero emissions by 2050, further solidifying the company’s position as a leader in sustainable energy solutions.
For more industry news and the latest reports sign up to our monthly newsletter:
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