Addax finally acquires Knock Adoon FPSO after protracted lease
Sopuruchi Onwuka
Nigerian based independent petroleum exploration and production company, Addax, as finally taken ownership of the main production vessel which has been pumping and processing oil and gs from operated mining license offshore Niger Delta.
The acquisition of the floating production, storage and offtake (FPSO) vessel from its owner, Yinson Production, came after the full 16 year lease tenure of deployment at the Oil Mining Lease (OML) 123 operated by Addax
The transaction value is however not visible to The Oracle Today at the time of writing.
Often referred to as the FPSO Knock Adoon, the vessel began operating offshore Nigeria with an original eight year lease tenure which ran to conclusion in 2014. The vessel lease was thereafter extended by eight more years ending in 2022.
“Yinson Production is pleased to announce that it has successfully completed the 16-year contract for FPSO Adoon, which has been operating at Block OML 123 offshore Nigeria,” the company stated in a release.
Before eventual acquisition, Addax Petroleum Development (Nigeria) Limited had embarked on short term lease extensions of consecutive monthly tenures until January 2023 as negotiation progressed, indicating to observers that Addax was working on solid arrangement for the facility.
The Oracle Today has reported Italian multinational major with vast operating interests in Nigeria, Eni, has also embarked on similar string of short term leases with BW Offshore over the tenure of the leased Abo FPSO vessel which is deployed in OML 125.
Eni’s Nigerian deepwater affiliate, Nigeria Agip Energy (NAE), has already extended the Abo FPSO vessel lease twice in the month, raining heads about the net announcement on the key field production facility.
Yinson explained that Addax exercised its contractual option to purchase FPSO Adoon at the end of the contract period and the sale was completed on 11 January 2023.
The Oracle Today reports that the FPSO Adoon was constructed by YP’s predecessor company, Fred. Olsen Production ASA, for deployment in Addax operated OML 123 in October 2006. And the vessel has inscribed an impressive performance record of 100 percent uptime of safe operations while in situ.
According to NAE, the FPSO Adoon has produced over 212 million barrels of oil, and clocked more than 6 million offshore man-hours since the commencement.
Yinson corroborates that FPSO Adoon has also provided safe and reliable operations to the client with an average technical uptime above 99.9% and no Lost Time Injuries (LTIs).
Chief Executive Officer at Yinson, Flemming Grønnegaard, said: “It fills us with pride to know that FPSO Adoon has been able to contribute significantly to Nigeria’s energy landscape for the past 16 years, positively impacting the local economy and wellbeing of the community.
“This has been made possible by our passionate team at Port Harcourt, with unwavering support from our client Addax, the regulatory bodies in Nigeria and the local community and supply chain. Deepest
FPSO Adoon was constructed by YP’s predecessor company, Fred. Olsen Production ASA, for Addax and commenced operations in October 2006. Since the commencement, the asset has provided safe and reliable operations to the client with an average technical uptime above 99.9% and no Lost Time Injuries (LTIs) for the last 11 years. FPSO Adoon has produced over 212 million barrels of oil and clocked more than 6 million offshore manhours over its contract tenure.
