Yinson Annual Report 2020

321 Annual Report 2020 48. Subsequent events (continued) (a) (continued) The Bareboat Charter and the O&M Agreement are hereinafter collectively referred to as the “Contracts” and Yinson West Africa, YGPL, YGOL and Aker Energy are hereinafter collectively referred to as the “Parties”. Subject to execution of the Contracts: (i) The primary term of the Contracts is expected to be for a period of 10 years; and (ii) Aker Energy may extend such primary term for an additional 1-year period, up to 5 times, for a maximum duration of 15 years in aggregate or as otherwise agreed by the Parties. An announcement regarding the salient terms of the Contracts including but not limited to the estimated value of the Contracts will be made upon execution of the Contracts by the Parties in due course. The execution of the Contracts is subject to the following conditions having been met: (i) Approval of the DWT/CTP Integrated Plan of Development by Ghanaian authorities; (ii) Approval by the Board of Directors of Aker Energy; (iii) Final Investment Decision by Aker Energy and its Co-Venturers; and (iv) Approval by the Board of Directors of YHB in the event of a material change to the Bareboat Charter and O&M Agreement. The LOI indicates an intention of the Parties to enter into the Contracts. Pending the finalisation and the approval of the DWT/CTP Integrated Plan of Development and Final Investment Decision, the LOI allows YGPL to initiate the planning and engineering activities in order to maintain the schedule of the Contracts. On 31 March 2020, Yinson West Africa, YGPL and YGOL received a notice from Aker Energy of its decision to terminate the LOI issued on 20 February 2020 for the proposed award of Contracts to charter, operate and maintain the FPSO for the project at DWT/CTP with immediate effect. The termination is due to the decision made by Aker Energy to postpone the activities under the DWT/CTP Petroleum Agreement and the development of the project until further notice amidst the COVID-19 pandemic. However, YHB Group reserves its right under the LOI for compensation due arising from the termination. The aforesaid termination will not leave any effect on the share capital and shareholding structure of the Company. The Company is in the midst of assessing the financial impact on its earnings and net asset per share for the financial year ending 31 January 2021. (b) On 28 February 2020, Yinson Eden Pte Ltd (formerly known as Yinson Boronia Production (S) Pte Ltd) (“YEPL”), an indirect wholly owned subsidiary of the Group, entered into the following agreements to acquire a controlling equity interest in Ezion Holdings Limited (“EHL”): (i) separate debt assignment agreements with each of the following parties: (a) DBS Bank Limited (“DBS”); (b) Oversea-Chinese Banking Corporation Limited (“OCBC”); (c) United Overseas Bank Limited (“UOB”); and (d) Malayan Banking Berhad (“MBB”)