Bumi Armada, Husky-CNOOC postpones contract signing

By Romel S. Gurky

Malaysian firm Bumi Armada Bhd said recently the Company and Husky-CNOOC Madura Limited (HCML) agreed to postpone the FPSO lease contract until Nov. 6, 2014.

It was the second postponement of the contract signing.

Both firms signed the Letter of Intent (LoI) on Aug. 18, 2014 under which Bumi Armada?s wholly-owned subsidiary, Bumi Armada Offshore Holdings Limited, together with its Indonesian joint venture company, PT Armada Gema Nusantara, will lease an FPSO for the Madura BD gas field in the Madura Straits Block. The contract?s value is US$1.18 billion for a fixed period of ten years.

Initially, they agreed to sign the FPSO lease contract on Oct. 9, 2014. The contract signing was postponed to Oct. 31, 2014.

?HCML has via a letter dated 31 October 2014 agreed to extend the period for the signing of the Contract until 6 November 2014. The extension is to enable parties to finalize the required clarifications,? Bumi Armada said.

Editing by Johannes Simbolon