Yinson Annual Report 2020

119 Annual Report 2020 Partners Forming alliances with reliable business partners has been a key success for Yinson, enabling us to increase our access to capital and strengthen our bidding capabilities. This has allowed the Group to bid for larger contracts and venture into new regions. Yinson’s partnership with Sumitomo is an example of a strategic partnership that has grown over the years, resulting in a win-win for both parties. On 28 April 2020, Yinson and Sumitomo concluded an agreement for Sumitomo to participate in the FPSO Anna Nery project with a 25% stake. Sumitomo’s participation follows on from the signing of a long-term and binding Memorandum of Understanding on 20 April 2018 to jointly pursue and collaborate in the leasing and operation of FPSO and FSO projects worldwide. Under this collaboration, Yinson commits to overseeing and conducting the overall project implementation, while Sumitomo commits to seeking competitive logistics and financing on top of enhancing the project execution. Another successful partnership that Yinson established was with a Japanese consortium consisting of Sumitomo, Kawasaki Kisen Kaisha Ltd (“KLine”), JGC Holdings Corporation (“JGC Holdings”) and Development Bank of Japan Inc (“DBJ”). The Japanese consortium successfully acquired a 26% equity interest in FPSO JAK in June 2018 – a transaction that velocitised the value of the project, enabling fresh capital to be redeployed for our strategic business growth plans. Yinson’s longest-standing partnership is with PetroVietnam Technical Services Corporation (“PTSC”) with whom we jointly own our two Vietnamese-based assets. The partnership enabled Yinson to venture into the offshore production industry in 2011, and continues until this day. We maintain our partnerships through site visits, meetings, events and roadshows to ensure that we have an ongoing dialogue and that information is shared towards creating mutually beneficial synergies. In FYE 2020, we actively engaged with our partners on multiple occasions including hosting sYnergy 2019. 25% effective interest in FPSO Anna Nery 26% equity stake in FPSO JAK Sumitomo Japanese consortium consisting of Sumitomo, KLine, JGC Holdings and DBJ 51% ownership of FPSO PTSC Lam Son and FSO PTSC Bien Dong 01 PTSC Y i n s on ’ s Pa r t n e r s h i p s n at u r e o f pa r t n e r s h i p