78 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2023 YINSON PRODUCTION YINSON PRODUCTION GOALS AND STRATEGIES GOALS STRATEGIES • Increase portfolio of profitable assets, creating long-term EBITDA of USD500 million. • Lead the way towards net zero with responsible solutions. • Execute projects on time and on budget, to support a strong brand reputation. • Deliver on our promises to clients and stakeholders on high quality operations. • Maintain a safe workplace at all times. • Build strong leadership team, skilled workforce and corporate culture. Short to medium-term (1 to 5 years) • Continue to build a sustainable pipeline of conversion and redeployment projects, including through mergers and acquisitions. • Proactively drive ESG initiatives to fulfil Group goal of reducing carbon intensity by 30% by 2030. • Invest in asset lifecycle management via a proactive digitalisation strategy. • Enhance learning opportunities and invest in leadership, safety and corporate culture development. Long-term (6 to 10 years) • Continuous development of our asset portfolio, creating a strong order book with stable cash flows. • Optimise capital structure, increase capital velocity, and expand the capital pool to support growth and capture market opportunities. • Continuously evaluate the effectiveness of our supply chain and Project Execution Philosophy. Business development activities In the year under review, we expanded our presence in the West African region with a contract award for the FPSO Agogo project in Angola. The firm contract, valued at USD5.3 billion, was signed with Eni Angola S.p.A. (a subsidiary of Azule Energy) in February 2023. The contract duration is 15 years, with the option of extending for a further five years. This brings our total order book up to over USD22 billion until 2048, providing good visibility of our earnings for the next few decades. FPSO Agogo, which marks our eighth FPSO in the West African region, is expected to commence operations in 2025 and also represents Yinson’s most advanced build in terms of emissions-reducing technologies. In 2022, we conducted feasibility studies with bp Exploration Angola (“bp”) for the use of FPSO Nganhurra in bp’s proposed 10-well subsea Palas, Astrea and Juno (PAJ) Fields in Block 31, Angola. Following the successful outcomes of the study, both parties entered into an exclusivity agreement to reserve FPSO Nganhurra for use in that field, while we negotiate a contract to convert, operate, maintain and lease the FPSO for bp. In autumn 2022, bp and Eni S.p.A formed a joint venture to form Azule Energy, which is now the largest operator in the country. Discussions are progressing well with Azule Energy, which in November 2022 extended the exclusivity agreement to the end of June 2023. The financial year under review also saw us completing pre-FEED work that we were awarded by TotalEnergies in June 2021 for their Cameia field in Angola. Due to a change in the contractual model, we did not continue to pursue the project after the completion of the pre-FEED. YP has been actively boosting our profile around the world in order to increase our pipeline of projects. With border restrictions in most parts of the world lifted in 2022, YP was able to participate and network in industry events such as the Offshore Technology Conferences in Houston and Asia, Rio Oil & Gas and Africa Oil Week.
RkJQdWJsaXNoZXIy NDgzMzc=