Bumi Armada sets up JV for construction of Madura field FPSO
Tuesday, April 14 2015 - 12:51 AM WIB
Malaysia-based international offshore oilfield services provider Bumi Armada Berhad said last week that its subsidiary Bumi Armada Offshore Holdings Ltd (BAOHL) has set up a 50-50 joint venture (JV) with Shapoorji Pallonji International FZE (SPINT), a subsidiary of Shapoorji Pallonji and Company Private Ltd, to among others design, engineer, construct, and install a floating, production, storage, and offloading (FPSO) vessel for the Madura BD gas field in the Madura Straits block, offshore East Java, operated by Husky-CNOOC Madura Limited (HCML).
PT Armada Gema Nusantara (PT AGN), a joint venture company of BAOHL and Indonesian PT Gema Marine Service (PT GMS), signed a 10-year US$1.18 billion charter contract on December 10, 2014 with HCML for the provision of the FPSO vessel. The FPSO is expected to commence operations at the Field in the first quarter of 2017.
It is anticipated that PT AGN will be the consortium leader in connection with the charter contract.
Bumi Armada said in a statement last week that Armada Madura EPC Limited, a wholly-owned subsidiary of BAOHL, has today entered into a sale and purchase agreement with PT AGN, pursuant to which Armada Madura will engineer, procure, convert, construct and complete the FPSO for sale and delivery to PT AGN, to enable PT AGN to perform its obligations under the charter contract.
Editing by Reiner Simanjuntak