Kawasaki Kisen Kaisha (K’ Line), Sumitomo Corporation, JGC Corporation, and Development Bank of Japan (DBJ) have agreed in principle to participate in the owning and chartering business for oil and gas floating production, storage and offloading (FPSO) run by the Malaysian offshore production services provider, Yinson Holdings Berhad and its group of companies.
After commencement of the definitive agreement, the four partners will acquire, through a joint venture, 26% of the shares of Yinson Production (West Africa), which has concluded a 15-year long-term FPSO chartering agreement with Eni Ghana Exploration and Production, an affiliate of the major Italian oil company Eni SPA, and started oil production at Offshore Cape Three Point Block (OCTP), approximately 60 kilometers south west of Ghana, in May 2017. Barring any unforeseen circumstances, the domestic supply of natural gas from FPSO is expected to commence in Ghana by mid-2018.
FPSO is key infrastructure for deep-water oil and gas production, which are likely to increase steadily in the future; thus, demand for FPSO is expected to increase. In preparation for this demand, DBJ will supply risk money with the “Special Investment Operations”, as the project will help improve vitality and develop sustainability of the Japanese economy.
Through the project, the four partners aim to contribute to stable oil and natural gas supplies in Ghana, thus solving natural gas and electricity shortages in the country.
