Norton Rose Fulbright advises Yinson on FPSO for Atlanta Field in Brazil

Global law firm Norton Rose Fulbright has advised subsidiaries of Yinson Holdings Berhad (“Yinson”) in relation to the financing and call option arrangements in respect of a floating, production, storage and offloading (“FPSO”) vessel, to be chartered to Enauta Energia S.A. (“Enauta”) and operated by a subsidiary of Yinson in the Atlanta Field located in the Santos Basin, offshore Brazil.  Yinson is one of the world’s leading FPSO contractors, based in Malaysia. 

The engineering, procurement, construction and installation of the FPSO are expected to be completed by the first half of 2024.  Prior to the completion of construction of the FPSO, Yinson has the discretion to exercise a call option to acquire the asset-owning company of the Project, together with a 15-year time charter agreement and operation & maintenance agreement in respect of the FPSO. Should Yinson exercise the call option, this FPSO will be its third in Brazil, bringing its total fleet to nine floating assets.

The project has an estimated aggregate value of US$505 million, with an increase to US$1.98 billion (inclusive of a 5-year extension period) should Yinson exercise the call option.

Ben Rose, head of shipping and offshore in Asia who led the deal team for Norton Rose Fulbright, commented: 

“We are delighted to have had the opportunity to support Yinson on this highly complex transaction, as they continue to grow their fleet of FPSOs in Brazil (and across the world) and pioneer modern, low-emission FPSO designs.  This project will contribute positively towards the development of Brazil’s energy industry. Norton Rose Fulbright has one of the world’s pre-eminent FPSO practices, having advised on over 120 FPSO and FSO financing transactions worldwide, including 40 such financings in Brazil, consistently from 1994 to the present day. We are very well equipped to advise clients and bring significant value-add on major transactions such as this.”

The deal team also included senior consultant Robert Driver (London) on the contracting arrangements, associate Sophie Polisena (Singapore) on the financing arrangements and partner Craig Loveless and senior associate Chris Bell (Singapore) on the call option and corporate aspects.