Bumi Armada signs FPSO contract for Madura BD field
Friday, December 12 2014 - 01:05 AM WIB
Malaysia-based international offshore oilfield services provider Bumi Armada Berhad (Bumi Armada) said it has finally signed on Wednesday a contract to supply 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).
The two firms signed a letter of intent (LOI) on August 18 for the supply of the FPSO vessel by Bumi?s wholly owned subsidiary Bumi Armada Offshore Holdings Limited (BAOHL), together with its Indonesian joint venture company PT Armada Gema Nusantara (PTAGN). But signing of the contract has been delayed three times.
?Bumi Armada is pleased to announce the signing of the contract yesterday evening in furtherance of the LOI. The effective date of the contract is 8 August 2014,? the company said in a statement Thursday.
The company said the contract is for a firm charter period of ten (10) years with options of five (5) annual extensions. The estimated aggregate value of the contract is approximately US$1.18 billion (equivalent to approximately RM3.98 billion).
The FPSO is expected to commence operations in the Madura BD Field in the fourth quarter of 2016.
BAOHL, a wholly-owned subsidiary of Bumi Armada, is principally involved in the business of owning, chartering, managing of ships and vessels, provision of marine support and other services to offshore oil and gas companies.
PT AGN is an Indonesian joint venture company of BAOHL and PT Gema Marine Services.
HCML is an oil and gas company based Indonesia. The shareholders of HCML are CNOOC Southeast Asia Limited, Husky Oil Madura Partnership and SMS Development Limited holding 40%, 40% and 20% in HCML respectively.
Editing by Reiner Simanjuntak