Yinson Annual Report 2019

FPSOHelang The contracts with JX Nippon are very important for the Group. They mark Yinson’s entry into the Malaysian market and the Group is honoured to be able to serve in Malaysia. Yinson will be redeploying FPSOHelang (previously named FPSO Four Rainbow) under a bareboat charter of an FPSO facility valued at USD860.00 million (approximately RM3.37 billion) and operations and maintenance contract value of USD578.00million (approximately RM2.35 billion) calculated on full charter for a tenure of eight years with options for 10 extension periods of one year each. FPSOHelang is currently under conversion and is scheduled to be deployed by December 2019 to Block SK10, offshore Miri, Malaysia. The Group is optimistic that we will be able to deliver the vessel within budget and on time, barring any unforeseen circumstances. In terms of Health, Safety and Environment (“HSE”) for the conversion of FPSOHelang, we are proud to share that we have accumulated 4.56 million man-hours with zero-LTI as at 31 January 2019. Additionally, all targets for the project’s HSE leading indicators have been met (100%), with the exception of observation card submissions (52%). We are addressing this gap with the shipyard, and the submission rate is improving every month. More details on the Company’s achievements on the HSE front is described in our Sustainability Statement. Yinson’s Miri office, which is FPSO Helang’s onshore base office, was set up on 26 December 2018. The office has a clear view of the South China Sea and is currently being staffed, and will be officially launched soon. FPSO Allan (to be renamed FPSO Abigail-Joseph) This contract awarded by FIRST E&P is a bareboat charter and operations and maintenance contract for the provision of an FPSO facility to be deployed at the Anyala and Madu Fields under Oil Mining Leases 83 & 85, offshore the Federal Republic of Nigeria. The total maximum possible estimated aggregate value of the contract is approximately USD901.79 million (approximately RM3.67 billion) with a firm period of seven years followed by a two-year and six yearly extension options. The timing of this contract was perfect as it allowed the Group to redeploy FPSOAllan, our vessel that ceased operations on 29 January 2019. The charter of FPSOAllan was originally set to expire on 30 April 2019 but was served a Notice of Termination three months earlier on 8 October 2018 by CNR International (Olowi) Limited (“CNR”) on the grounds of convenience with confirmed early termination payment compensation. The earlier termination was inevitable due to the under performance of the reservoir. Throughout its close to 10 years tenure on the field, FPSOAllan had performed steadily, with an average fleet uptime record of 99.9% since 2012. FPSOAllan will be renamed FPSO Abigail-Joseph after completion of the necessary upgrades. FPSO John Agyekum Kufuor Yinson’s largest asset, FPSO JAK, continues to perform excellently since achieving first oil in May 2017. The vessel has achieved an average uptime of 99.7%, which is indeed an indicator of our team’s strong vessel operations and maintenance capabilities. FPSO JAK achieved first oil three months ahead of schedule on a fast track project - a record time-to-market production of first oil. These delivery milestones, complemented by our consistent uptime record, no doubt boosted investor confidence in the Group. One notable outcome of this confidence was the successful sale of 26% equity interest in a subsidiary that owns FPSO JAK in June 2018 to a Japanese consortium, which I explain further in the ‘Strong and supportive shareholders and business partners’ section of this analysis. 33 Yinson Group Overview Strategy and Sustainability Governance Accountability Annual General Meeting