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Yinson likely to stand better chance for Parque FPSO with two bidders

The Edge logo The Edge 11/3/2019 AmInvestment Bank
© Provided by The Edge Communications Sdn Mhd

Yinson Holdings Bhd

(March 8, RM4.45)

Maintain buy with an unchanged fair value (FV) of RM6.10:

Oil and gas publication Upstream reported that Petrobras had received only two bids from Yinson and a joint venture (JV) between the Netherlands-based Bluewater and Italy’s Saipem in a tender for the charter of a medium-sized floating production, storage and offloading (FPSO) vessel to operate in the Parque das Baleias (Parque) complex in the Campos basin.

 

Yinson seems to be selecting CIMC Raffles’ shipyard in Yantai, China to undertake the conversion and integration works while the Bluewater-Saipem JV negotiates with state-owned China Merchants Group.

In a surprise development, Modec, which has been aggressively bidding for Petrobras’ projects, did not tender for the Parque FPSO charter as the group appears to have reached its capacity limitation. Canada’s Teekay Offshore also did not make a bid after tendering for each of the two Marlim FPSO charters.

Recall that Petrobras divided the earlier Marlim tender into three packages — Lot A specifically for Marlim I, Lot B for Marlim II, while Lot C offers the option to submit a single offer for both units. Modec submitted bids for all three packages, while Teekay and Yinson each presented offers for lots A and B.

Modec and SBM Offshore are bidding for the Mero 2 FPSO charter, while Bumi Armada is not pursuing Brazil’s huge projects for now. — AmInvestment Bank, March 8

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