Yinson's FPSO Contract in Nigeria Ends after 16 Years as Client Opts to Buy the Floater

The Malaysian FPSO leasing company Yinson has completed the 16-year contract for FPSO Adoon in Nigeria as the client Addax decided to buy the FPSO.

The contract for the FPSO which has been operating at Block OML 123 offshore Nigeria, had an original term of 8 years until 2014, with the option to extend by up to 8 more years until 2022. The contract was further extended by client Addax through consecutive monthly extensions until January 2023. 

Addax exercised its contractual option to purchase FPSO Adoon at the end of the contract period and the sale was completed on January 11, 2023. The purchase price was not disclosed.

FPSO Adoon was built by Yinson's predecessor company, Fred. Olsen Production ASA, for Addax and started operations in October 2006. 

The spread-moored FPSO, with a storage capacity of 1,7 million barrels of oil, can produce 60,000 barrels of oil per day.

According to Yinson, since the production start, the asset has provided safe and reliable operations to the client with an average technical uptime above 99.9% and no Lost Time Injuries (LTIs) for the last 11 years. 

According to Yinson, the FPSO Adoon has produced over 212 million barrels of oil, and clocked more than 6 million offshore manhours over its contract tenure.

Flemming Grønnegaard, Chief Executive Officer, said: “It fills us with pride to know that FPSO Adoon has been able to contribute significantly to Nigeria’s energy landscape for the past 16 years, positively impacting the local economy and wellbeing of the community. This has been made possible by our passionate team at Port Harcourt, with unwavering support from our client Addax, the regulatory bodies in Nigeria and the local community and supply chain. Deepest appreciation to everyone who played a part in FPSO Adoon’s success story.”