Japan’s K Line has teamed up with three other compatriots to participate in the owning and chartering business of a FPSO run by Malaysia’s offshore services provider Yinson Holdings.
The consortium of four includes K Line, Sumitomo Corporation, JGC Corporation and Development Bank of Japan Inc.
The four partners will acquire, through a joint venture, 26% of the shares of Yinson Production (West Africa), a Yinson-operated FPSO owning company for the FPSO John Agyekum Kufuor.
Yinson Production (West Africa) has inked a 15-year long-term FPSO chartering agreement with Eni Ghana Exploration and Production, which is an affiliate of Italy’s Eni SPA, and has started oil production in May at Offshore Cape Three Point Block, approximately 60km southwest of Ghana.
The domestic supply of natural gas from FPSO is expected to commence in Ghana by mid-2018.
K Line believed that FPSO will remain a key infrastructure for deepwater oil and gas production, which is likely to increase steadily in the future.
Through the project, the four partners will contribute to stable oil and natural gas supplies in Ghana, thus solving natural gas and electricity shortages in the country, according to K Line.