Enauta Approves full Development of Atlanta field for $1.2 billion
The company has also awarded a contract to Yinson of Malaysia to supply, operate and maintain the FPSO vessel that will be used as part of the field's FDS.
Enauta said the project could produce 50,000 barrels of oil and process 140,000 barrels of water per day. Commissioning is expected by mid-2024, initially with six wells in the field. According to the company, there is an active aquifer in Atlanta that does not require water or gas injection, making the project more solid.
The approved investment is $1.2 billion, already including $100 million to be injected once production begins and $500 million related to the production block. If Yinson exercises an option to purchase the vessel, a 15-year chartering agreement tied to financing for the same term comes into effect. In this case, the investment in the project would be reduced by $100 million.
"The implementation of the Atlanta SDS will significantly increase the company's production and sustainability. Because of the points learned in the early production system, the full field system relies on efficient technologies that reduce costs and greenhouse gas emissions. We have developed a competitive project for the energy transition that can provide an attractive return to our shareholders," says Decio Oddone, CEO of Enauta.
In a separate statement, Yinson said the design, procurement, construction and installation of the FPSO is expected to be completed by the first half of 2024. Until FPSO construction is completed, Yinson has the discretion to exercise an option to acquire the project's asset-owning company with a 15-year time-charter and operations and maintenance agreement, with Enauta having the right to extend the agreements for an additional 5 years.
The total value of the project is estimated at $505 million, including the 2-year O&M agreement. That amount could be increased to $1.98 billion, including a 5-year extension period, if Yinson exercises a purchase option. FPSO will be one of Yinson's three assets in Brazil.
"Brazil has the majority of its FPSO contracts in 2021, and we expect it to remain the dominant FPSO market going forward. With our solid track record, Yinson is committed to enthusiastically providing powerful solutions for Enauta. Our goal is to make a positive contribution to Brazil's energy industry," said Yinson Group CEO Lim Chern Yuan.
"We always strive to develop low-emission projects from the very beginning, and this project is no exception. Yinson and Enauta have been working closely together since last year, and we have made significant progress. We believe that our close working relationship with Enauta will help us move one step closer to Yinson's zero-emission FPSO vision and our goal of achieving zero emissions by 2050," added Flemming Grønnegaard, Yinson's general manager of offshore operations.