Bumi Armada to Pay $85M in Reimbursement, Liquidated Damages for FPSO

Malaysia's offshore energy facilities and services company Bumi Armada Berhad confirmed Thursday that it has concluded discussions with the charterers regarding the delay in delivery of FPSO Kraken Armada which is scheduled to be deployed to the EnQuest plc-operated Kraken field in the UK Sector of the North Sea, the firm said in a filing with stock exchange Bursa Malaysia.

Following the discussions, Bumi Aramda said the charter rates and charter term for the 8 year FPSO (floating production, storage and offloading vessel) contract will remain unchanged and the facility is targeted for sailaway later this year in accordance with new key dates agreed with the charterers.

Armada Kraken Pte Ltd. (AKPL) -- Bumi Armada's subsidiary -- will pay the charterers $20 million as "liquidated damages pursuant to the terms of the FPSO Contract".

Also, Bumi Armada pointed out in the disclosure to Bursa Malaysia that "in recognition of certain amendments to FPSO Contract scope agreed with the charterers, AKPL has agreed to pay the charterers an amount of $65 million during the course of the charter term, commencing from the first half of 2017. This represents a partial reimbursement of an upfront amount previously paid by the charterers."

First oil from the Kraken field is scheduled to flow in the first half of 2017, Enquest indicated Sept. 8 when it released its 2016 half year results.



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
 -  Hurricane Spuds North Sea Halifax Well... (Jan 16)
 -  Inpex, ADNOC Agree to Extend Offshore ... (Jan 16)
 -  Jesse Norman to Take on Full Energy Br... (Jan 13)
 -  CNOOC Starts Penglai 19-9 Output (Jan 13)
 -  Report: CHC to Shut Down Bergen Base, ... (Jan 13)


Most Popular Articles

From the Career Center
Jobs that may interest you
US Rock Springs, WY: Pump Technician I -II
Expertise: Field Service Tech
Location: Rock Springs, WY
 
Field Service Representative I - ProTechnics
Expertise: Field Service Tech
Location: Oklahoma City, OK
 
Field Service Representative I - ProTechnics
Expertise: Field Service Tech
Location: Parkersburg, WV
 
search for more jobs

Brent Crude Oil : $55.45/BBL 0.99%
Light Crude Oil : $52.37/BBL 1.20%
Natural Gas : $3.42/MMBtu 0.88%
Updated in last 24 hours