Bumi Armada Seals $1.18B FPSO Contract for Indonesia’s Madura BD Field
Malaysia-based international offshore oilfield services provider, Bumi Armada Berhad (Bumi Armada or the Company) announced Thursday 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, on the evening of Dec. 10, been awarded a contract to supply one floating, production, storage and offloading vessel (FPSO) (Contract) 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 issued by Husky-CNOOC Madura Limited (HCML***).
This award is in furtherance to the announcements made by the Company Aug. 19, Oct. 14, Oct. 31, Nov. 12 and Dec. 4 in respect of the Letter of Intent (LOI) issued by HCML.
The Contract is for a firm charter period of 10 years with options of five annual extensions. The estimated aggregate value of the Contract is approximately $1.18 billion (equivalent to approximately MYR 3.98 billion) and is expected to contribute positively to the earnings of the Bumi Armada Group for the quarter and financial year ending Dec. 31, as well as the financial periods thereafter for the duration of the Contract.
The FPSO is expected to commence operations in the Madura BD Field in the fourth quarter of 2016.
BAOHL* is a wholly-owned subsidiary of Bumi Armada.
PT AGN** -- This is a 49:51 joint venture between BAOHL and PT Gema Marine Services
HCML*** is an oil and gas company based in Jakarta, 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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