Bumi Armada to supply FPSO vessel for Madura BD field

By Romel S. Gurky

Malaysia-based international offshore oilfield services provider Bumi Armada Berhad (Bumi Armada) announced Wednesday that its wholly-owned subsidiary, Bumi Armada Offshore Holdings Limited (BAOHL), together with its Indonesian joint venture company, PT Armada Gema Nusantara (PTAGN), have been appointed as the FPSO lease contractor for the Madura BD gas field in the Madura Straits Block, offshore East Java, Indonesia, via a Letter of Intent (LOI) issued by Husky-CNOOC Madura Limited (HCML).

Pursuant to the LOI, the consortium will supply a Floating Production, Storage and Offloading (FPSO) vessel to HCML at a contract value of US$1.18 billion for a fixed period of 10 years with options of five annual extensions worth an aggregate value of $147 million, the company said in a statement.

The terms and conditions of the FPSO lease contract is to be finalized and signed within 45 days from the effective date of the LOI of August 8, 2014, the firm added.

Executive Director and Chief Executive Officer of Bumi Armada, Hassan Basma said, ?Indonesia has proven reserves of 3.9 billion barrels of oil and 141 trillion cubic feet of natural gas and we are excited to be a part of Indonesia?s energy development. Our track record of delivering on time, within budget, safe and reliable FPSOs, was instrumental in securing this award.?

BAOHL, a wholly-owned subsidiary of Bumi Armada, was incorporated in the Republic of the Marshall Islands Business Corporations Act 1990 as a Marshall Islands Corporation on 17 June 2010 and 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.

The shareholders of HCML are CNOOC Southeast Asia Limited (40%), Husky Oil Madura Partnership (40%) and SMS Development Limited holding (20%).

Editing by Reiner Simanjuntak