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
WHAT DO YOU THINK?
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.
- CNOOC 3Q Revenue Rises; Only Halfway To 2017 Spending Goal (Oct 25)
- CNOOC Completes Test Runs at Huizhou Refinery in Guangdong - Report (Oct 09)
- Exxon Mobil Bets on Brazil, Buys 10 Oil Blocks in Auction (Sep 28)
Company: Husky Energy more info
- Husky Energy Posts Smaller 2Q Loss On Higher Oil Prices (Jul 21)
- Canada's LNG Failure Is Its Own Fault, Seven Gen Founder Says (Jul 17)
- Statoil Drills Dry Wells Off Canada's Newfoundland (Jul 10)
Company: Bumi Armada Berhad more info
- Bumi Armada to Pay $85M in Reimbursement, Liquidated Damages for FPSO (Sep 16)
- Bumi Armada Berhad Appoints New Chief Financial Officer (Sep 09)
- FPSO Armada Kraken on Track for North Sea Deployment (Aug 29)