71 THE YEAR IN REVIEW All FPSO projects progressing smoothly Yinson Production’s priority throughout 2023 was delivering our four FPSO projects under construction, as their timely delivery is crucial to unlocking the sustained value that will facilitate our growth plans, both as a business and as part of Yinson Group. A huge milestone in the financial year was FPSO Anna Nery achieving first oil on 7 May 2023. Executing this project during the pandemic was not easy. However, with support from our client, vendors, and investors, we were able to navigate the uncertainties to deliver our first Brazilian asset for our client. We have successfully completed FPSO Atlanta’s project execution phase, marked by the vessel’s sail away from Dubai on 15 March 2024. The asset arrived in the Atlanta Field in the Santos Basin, Brazil on 11 May 2024. The project has clocked over 10 million manhours without LTI, and is progressing well towards first oil before year-end. The FPSO Maria Quitéria project is progressing according to schedule with respect to first oil. All topsides modules are onboard and integrated and commissioning is underway with system handover to operations ongoing. The project incorporates some key technological features to reduce emissions including combined cycle power generation and flare gas recovery. The asset’s naming ceremony celebration was held in early April 2024, with sail away from the shipyard following on 7 May 2024. As of May 2024, FPSO Agogo has achieved 18 million manhours, with progress at around 73%, on par with the forecast. Core engineering activities, as well as procurement activities for Marine and Topsides CSI packages are completed. Construction work is progressing well, with first module lifting campaign completed in March 2024 and second module lifting campaign planned in June 2024. 25% of overall Mechanical Completion has been achieved and commissioning activities are planned to start in May 2024 ahead of schedule. Overall, the project is advancing steadily, with teams actively managing various aspects to ensure alignment with schedules and objectives. FPSO Anna Nery starting up production in May 2023 has improved Yinson Production’s cash returns. When our operating fleet is joined by FPSO Maria Quitéria and FPSO Atlanta (scheduled for end 2024), followed by FPSO Agogo (scheduled for Q4 2025), recurring revenue from FPSO Operations will be at its strongest yet, increasing Yinson Production’s platform value even further. Building a strategic pipeline to unlock value for the business and Group In this present flourishing offshore production market, we are one of a limited number of FPSO providers globally that have the capabilities to meet increasingly complex technical requirements. The high demand for our services allows us to strategically build our project pipeline to match our strengths and business plans. Geographical location We will maintain focus on South America, Africa, and Asia, which dominate the outlook for the FPSO industry. These areas are where Yinson currently has the strongest presence, and we aim to further capitalise on our track record with our clients and our local human capital. These are also where most emerging economies, which are facing critical energy security concerns, are located. Yinson Production will play an important role in the provision of energy to support local economic growth. Project developments We will maintain focus on conversion and redeployment projects, and mid-sized, deepwater units. We will leverage our long track record in this environment. Technology We will continue developing our carbon technologies and integrate such facilities in future design. Our concept for CO2 Floating Storage and Injection Unit will be offered to our clients as well as the Green and Blue Ammonia FPSO Concept. New markets will form part of our future project pipeline. Carbon emissions profile We will select projects which align with our Climate Goals of lowering our operating fleet’s carbon intensity by 30% by 2030, and a further 30% by 2050. We will work with clients that support our philosophy and share our targets. OUR STRATEGIC CONSIDERATIONS WHEN BUILDING OUR FUTURE PROJECT PIPELINE BUSINESS REVIEWS | YINSON PRODUCTION
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