FPSO Armada Claire to Head for Balnaves Oil Field off NW Australia

Keppel Shipyard Ltd. held a sail away ceremony Saturday for Bumi Armada Berhad's Armada Claire floating production, storage and offloading (FPSO) facility at its Tuas yard in Singapore, Malaysia's media The Sun Daily reported Monday.

The Malaysian offshore services provider awarded Keppel Shipyard the modification and upgrade deal for the FPSO - the firm's fifth FPSO - in April 2012. FPSO Armada Claire will head to the Balnaves field located off north-west Australia to commence work for Apache Energy Ltd. under a four year fixed term contract worth $457.9 million (MYR 1.46 billion). The deal also contains an option for a further four year annual extension period.

FPSO Armada Claire marked Bumi Armada's entry into Australia. The facility also provided a breakthrough for the firm as it tries to shift from smaller FPSOs (below $500 million) to larger ones worth over $500 million.

"We hope this will be followed by more FPSOs. It's less competitive compared with the lower end segment, where there are too many players and it's all about price. The bigger one is about capacity, technology and the ability to deliver and we have all those in abundance," Bumi Armada's Executive Director and CEO Hassan Basma said in The Sun Daily.

Meanwhile, Bumi Aramda hopes to secure an order book of $6 billion (MYR 20 billion) by the end of 2014, up from the current $3.6 billion (MYR 12 billion). The company is keen to win a FPSO contract in Mexico following the opening up of the country's oil and gas industry recently.

"Everyone should keep an eye on the Mexican market because it's the next big thing. It's not a secret that we're one of the shortlisted bidders for the Ayatsil-Tekel project and there's going to be Ayatsil 2 and 3 behind it ... There's a lead time and we need to be there and we're there," Hassan added.

Bumi Armada is currently bidding for 10 large FPSO contracts worldwide, with awards for some of these projects expected before the end of 2Q 2014.

"We expect some of those FPSOs to be put into materialization soon. We've a good chance in Indonesia, as well as in Angola," the Bumi Armada CEO said.

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