Bumi Armada, HMCL Further Delay FPSO Contract Signing for Madura BD Field

Malaysia's Bumi Armada Berhad referred Wednesday to the announcements it made Aug. 19, Oct. 14 and Oct. 31 in respect of the Letter of Intent (LOI) issued by Husky-CNOOC Madura Limited (HCML) for the award of a contract to supply one floating, production, storage and offloading vessel (FPSO) at a contract value of $1.18 billion (equivalent to approximately MYR 3.76 billion) for a fixed period of 10 years with options of five 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 finalization of the terms and conditions and signing of the FPSO Lease Contract (the Contract), to a consortium comprising of the Company’s wholly-owned subsidiary, Bumi Armada Offshore Holdings Limited (BAOHL) and its joint venture company, PT Armada Gema Nusantara (PT AGN) (collectively referred to as the Consortium).

Bumi Armada wishes to announce that HCML and the Consortium have mutually agreed via an Amendment of Letter of Intent dated Nov. 6, to extend further the period for the execution of the Contract. Accordingly, the LOI shall terminate upon the earlier of:

(a)  Nov. 27, subject to such extension as may be mutually agreed between HCML and the Consortium; or

(b)  upon signing of the Contract

The parties have finalized clarifications and are procuring relevant internal approvals to execute the Contract.

This announcement is dated Nov. 12.


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