Bumi Armada, Husky-CNOOC postpones contract signing again

By Romel S. Gurky

Malaysian firm Bumi Armada Bhd said on Thursday the firm and Husky-CNOOC Madura Limited (HCML) agreed to postpone the FPSO lease contract until Dec. 10, 2014.

It was the third 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 first postponed to Oct. 31, 2014 and then to Nov. 6.

Both firms mutually agreed to extend the period for the signing of the contract until Dec. 10 ?to enable parties to procure relevant internal approvals to execute the contract,? the firm said.

Editing by Johannes Simbolon