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Brazil's Enauta and Malaysia's Yinson sign deal on US$500 million-oil platform

SAO PAULO : Brazilian oil company Enauta Participacoes SA said on Monday it has made a preliminary pact with Malaysia's Yinson Holdings Berhad on engineering and other commitments of an FPSO platform to be used in its Atlanta oilfield.

The company said in a securities filing that Yinson will adapt the OSX-2 floating, production, storage and offloading unit and hold a 24-month operation and maintenance contract.

The costs for the acquisition and adaptation were estimated at around US$500 million, Enauta said. The Brazilian company currently holds an exclusive option to purchase the FPSO, but noted that under the deal, Yinson will have the right to acquire the unit before it starts operating.

"If the option is exercised, it will be linked to charter, operation and maintenance contracts for a period of 15 years, which may be extended for another five years, totaling US$2 billion for the 20 years," Enauta said.

It expects to sign the definitive contracts in the first quarter of 2022.

(Reporting by Gabriel Araujo; Editing by Bernadette Baum)

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