Bumi Armada to Challenge Woodside's Termination of Armada Claire FPSO Deal

Malaysia's offshore oil and gas facilities and services provider Bumi Armada Berhad indicated Friday that its wholly owned subsidiary Armada Balnaves Pte. Ltd. (ABPL) has received a termination notice from Woodside's Petroleum Ltd.'s unit Woodside Energy Julimar Pty Ltd. for the Armada Claire Floating Production Storage and Offloading (FPSO) unit now operating in the Balnaves field, offshore north western Australia.

"Bumi Armada’s position is that the purported Notice of Termination is not valid, and in fact tantamount to a cancellation for convenience or alternatively, is a repudiation of the Contract by Woodside, pursuant to which the Company is entitled to compensation from Woodside," the company said in a press release.

The firm added that it "intends to fully enforce its rights under the Contract, including initiating legal proceedings against Woodside for its unlawful purported termination of the Contract" for the FPSO which has been operating at the Balnaves field since delivering first oil in August 2014.

Bumi Armada said the purported termination of the FPSO charter contract is likely to have an impact on its full year 2016 financial results, which the firm cannot conclusively ascertained at the moment given its dependence on the outcome of its legal action against Woodside.

Apache Energy Ltd., the operator of the Balnaves field before Woodside acquired the former's upstream interest in Australia in December 2014, signed a four year fixed term $357.1 million (MYR 1.46 billion) contract, including a further four year annual extension period thereafter, for the FPSO in September 2011.



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  Farstad Shipping Sells AHTS Lady Sandr... (Sep 27)
 -  Real Energy Prepares for Tamarama-1 We... (Sep 27)
 -  Trelleborg Appoints Unique Group as it... (Sep 27)
 -  Neptune Marine Services Bags Quadrant'... (Sep 27)
 -  Richard Dyson Appointed New CEO of IO ... (Sep 27)


Most Popular Articles

From the Career Center
Jobs that may interest you
Petroluem Inspector II
Expertise: Field Service Tech|Marine Surveying|Surveying
Location: Port Neches, TX
 
Petroleum Inspector Trainee
Expertise: Field Service Tech|Marine Surveying|Surveying
Location: Saraland, AL
 
United States Williston: Entry Level Engineer - Cased Hole
Expertise: Wireline
Location: Williston, ND
 
search for more jobs

Brent Crude Oil : $45.97/BBL 2.91%
Light Crude Oil : $44.67/BBL 2.74%
Natural Gas : $3/MMBtu 0.33%
Updated in last 24 hours