Malaysia’s FPSO & FSO service provider Yinson Holdings has started exclusive negotiations for a potential supply and charter of a floating production storage and offloading (FPSO) unit off Nigeria.

The company unveiled the plans to provide an FPSO to the country’s First Exploration & Petroleum Development Company (First E&P) for processing hydrocarbons from the Anyala & Madu fields under Oil Mining Leases 83 & 85, offshore Nigeria.

Yinson’s subsidiary, Yinson Production, entered into a Heads of Terms (HOT) with Yinson Operations & Production West Africa Limited and First E&P to negotiate the terms of a bareboat charter and an operations and maintenance (O&M) agreement.

The initial term of the bareboat charter is expected to be a period of 7 years, Yinson said, adding that First E&P would have the option to extend the charter for another 8 years in total.

The parties are expected to finalize the agreements by the end of June 2018.

First E&P owns 40% of the rights to the fields with the remainder being held by Nigerian National Petroleum Corporation (NNPC).