KUALA LUMPUR: Yinson Holdings Bhd said its wholly-owned unit has been awarded a US$578 million (RM2.357 billion) contract from JX Nippon Oil & Gas Exploration (M) Ltd.

The contract, awarded to Yinson Energy Sdn Bhd on Tuesday, is for the provision of operations and maintenance (O&M) services for JX Nippon’s floating production storage and offloading (FSPO) facilities, the group said in a filing to Bursa Malaysia yesterday.

“The tenure of the contract is effective from Feb 12, 2019 and shall remain in full force until termination of the contract for the provision of engineering, procurement, construction, installation & commissioning and leasing for the Layang FSPO facilities (charter contract). The charter contract is for a firm period of eight years and comes with options for 10 extension periods of one year each,” Yinson said.

It said the O&M contract is expected to contribute positively to the group’s earnings for the financial year ending Jan 31, 2020 onward, until the charter contract is terminated.

The value of the O&M contract is based on the assumption that all extension options would be fully exercised.

Shares in Yinson closed unchanged yesterday at RM4.08, for a market capitalisation of RM4.41 billion.