Bumi Armada Bags $1.18B FPSO Deal for Madura BD Field Offshore Indonesia
Malaysia-based international offshore oilfield services provider, Bumi Armada Berhad announced Tuesday that its wholly-owned subsidiary Bumi Armada Offshore Holdings Limited (BAOHL), together with its joint venture company, PT Armada Gema Nusantara* (PT AGN) (collectively, the Consortium), have been appointed as the Floating Production, Storage and Offloading Vessel (the FPSO) Lease Contractor for the Madura BD Field, approximately 40 miles (65 kilometers) east of Surabaya and about 10 miles (16 kilometers) south of Madura Island, offshore Indonesia via a Letter of Intent (LOI) issued by Husky-CNOOC Madura Limited** (HCML).
Pursuant to the LOI, the Consortium will supply a FPSO Vessel to HCML at a total contract value of $1.18 billion (equivalent to approximately MYR 3.76 billion) for a fixed period of 10 years with options of 5 annual extensions worth an aggregate value of $147 million (equivalent to approximately MYR 469 million), if the options are fully exercised by HCML, subject to terms and conditions of the contract, which is to be finalized and signed within 45 days of the date of the LOI of Aug. 8 subject to such extension to be mutually agreed between HCML and the Consortium.
Executive Director and CEO 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.”
*PT AGN is an Indonesian joint venture company of BAOHL and PT Gema Marine Services.
**HCML is an oil & gas company based in Jakarta, with its operations offshore Madura Island located in the Madura Straits, offshore East Java, Indonesia. The shareholders of HCML are CNOOC Southeast Asia Limited, Husky Oil Madura Partnership and SMS Development Limited holding 40 percent, 40 percent and 20 percent in HCML respectively.
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