Yinson and Sumitomo Corporation enter into Memorandum of Understanding for collaboration in FPSO and FSO business

On 20th April 2018, Yinson Holdings Berhad (“Yinson”) and Sumitomo Corporation (“Sumitomo”) have signed a long term and binding Memorandum of Understanding with a view to jointly pursue and collaborate in the leasing and operation of FPSO and FSO projects worldwide, subject to the terms of the Memorandum of Understanding.

In this collaboration, Yinson shall oversee and conduct the overall project implementation and primarily, Sumitomo shall take reasonable endeavours to seek competitive logistics and financing on top of enhancing the overall value chain from upstream to downstream of any selected projects.

Furthermore, Yinson and Sumitomo have a non-binding obligation to discuss in good faith and work on a best effort basis in relation to other potential collaboration in the field of energy infrastructure business. This includes Liquified Natural Gas (LNG) related projects such as LNG regasification for the power industry, and other similar offshore energy infrastructure opportunities.

Sumitomo has participated in 26% equity in Yinson Production (West Africa) Pte Ltd (“YPWAPL”) through a Japanese consortium which is nearing completion. YPWAPL is the owner of FPSO John Agyekum Kufuor which is currently operating at Offshore Cape Three Point Block in Ghana.

We believe that, the new collaboration will significantly enhance the equity capacity of Yinson to take on larger FPSO and FSO projects and provide access to Sumitomo’s global business network and local expertise with its 108 operational bases spread across 65 countries in the world.

“We trust that, with the combination of Yinson’s knowledge and expertise in FPSO and FSO business and Sumitomo’s financial strength and network, the collaboration is likely to have higher potential in winning new projects.” Commented by Mr. Lim Chern Yuan, Group Chief Executive Officer.

■Sumitomo Corporation’s  Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to “the Development of Local Communities and Industries” .