Ocean Yield ASA ("Ocean Yield" or the "Company") is pleased to announce that the Company today has entered into an agreement with Aker Energy AS ("Aker Energy"), where Aker Energy has an option to bareboat charter the FPSO Dhirubhai-1 for a period of 15 years. If the option is exercised, the FPSO is intended to be used for an early-production project offshore Ghana.
Aker Energy will pay USD 3 million for the option, that can be exercised before 1st May 2019. In addition, Aker Energy can extend the initial option-period by another 30 days against additional compensation. If the option is exercised, Ocean Yield will finance the modification of the FPSO against a competitive charter rate that reflects the book value of the unit and the cost of the modification. Ocean Yield will not be exposed to risks related to the modification or be involved in the operation of the vessel.
Furthermore, the majority of the personnel in Aker Floating Production AS will be hired by Aker Energy until 1st May 2019. Aker Energy has an option to offer employment to the personnel upon expiry of the option period.
Ocean Yield's Chief Executive Officer Lars Solbakken said in a comment: "We are pleased to announce that we have entered into an option agreement with Aker Energy for a 15-year bareboat charter for the FPSO Dhirubhai-1 for their planned early oil production offshore Ghana. If the option is exercised, we expect some revenues from the FPSO already this year and increased revenue contribution from first oil, which is targeted in 2021."
Aker Energy is, through its subsidiary in Ghana, the operator of the Deepwater Tano Cape Three Points (DWT/CTP) block offshore Ghana with a 50% participating interest.
Eirik Eide (CFO), Tel +47 24 13 01 91
Investor Relations contact:
Marius Magelie (SVP Finance & IR), Tel +47 24 13 01 82
Ocean Yield ASA is a ship owning company with investments in vessels on long -term charters. The company has a significant contract backlog that offers visibility with respect to future earnings and dividend capacity.