Bumi Armada Forms JV for EPCC of Indonesia's Madura BD Field FPSO Project
Malaysia's Bumi Armada Berhad, an international offshore oilfield services provider, referred Friday to the firm's announcement dated Dec. 11, 2014 in relation to the execution of a charter contract between an unincorporated consortium comprising Bumi Armada Offshore Holdings Limited (BAOHL), a wholly-owned subsidiary of Bumi Armada, and PT Armada Gema Nusantara (PT AGN) (a joint venture company of BAOHL and PT Gema Marine Service (PT GMS)) (BAOHL and PT AGN are collectively referred to as the Consortium), and Husky-CNOOC Madura Limited (HCML) Dec. 10, 2014 for the provision of a floating production, storage and offloading vessel facility (FPSO) for charter and deployment at the Madura BD Field in the Madura Strait, Offshore East Java, Indonesia (Field) and the operation and maintenance of the FPSO (Charter Contract).
Pursuant to the Charter Contract, the Consortium shall provide, operate and maintain the FPSO for charter and deployment at the Field. With an estimated aggregate value of approximately $1.18 billion (equivalent to approximately MYR 4.29 billion), the Charter Contract is for a firm charter period of 10 years with options of five annual extensions. The FPSO is expected to commence operations at the Field in the first quarter of 2017.
It is anticipated that PT AGN will be the Consortium leader in connection with the Charter Contract.
On behalf of the Board of Directors (Board) of Bumi Armada, CIMB Investment Bank Berhad (CIMB) wishes to announce that:
- Armada Madura EPC Limited (Armada Madura), a wholly-owned subsidiary of BAOHL, has today entered into a sale and purchase agreement with PT AGN, pursuant to which Armada Madura will engineer, procure, convert, construct and complete the FPSO for sale and delivery to PT AGN (FPSO SPA), to enable PT AGN to perform its obligations under the Charter Contract; and
- Immediately thereafter, Bumi Armada and BAOHL, and Shapoorji Pallonji and Company Limited (SPCL) and SPCL's indirect subsidiary Shapoorji Pallonji International FZE or SPINT (Bumi Armada and BAOHL together on the one part, and SPCL and SPINT together on the other part, are collectively referred to as the JV Partners) have agreed to jointly invest in Armada Madura, to undertake the engineering, design, acquisition, conversion, development, construction, fitting out, completion, mobilization, transportation, installation, hook-up, testing, commission and integration of the FPSO and all equipment thereon at the Field in accordance with the requirements of the Charter Contract (FPSO Project), where each of BAOHL and SPINT would hold a 50 percent economic interest and be responsible for 50 percent of the funding obligations with respect to the FPSO Project (Specified Proportions), subject to adjustments in accordance with the FPSO Project SHA (as defined below) (Joint Venture).
In relation thereto, the JV Partners and Armada Madura, have today, entered into a shareholders’ agreement with respect to the Joint Venture (FPSO Project SHA).
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